4 Holiday Spending Mistakes to Avoid

Make your spending list and check it twice to avoid unnecessary debt this holiday season!

1. Maxing Out Your Credit Cards

Increasing your credit card debt to purchase holiday gifts is rarely a smart financial practice. Granted, there are benefits to credit card usage, such as racking up points or receiving 1.5% cash back on purchases, but the bad far outweighs the good without a payback plan. By going on a holiday spending spree with no money in the bank, you risk digging yourself a financial grave that could take months or years to crawl out of.

Avoid this mistake by setting a holiday spending budget. Before the season hits, take a realistic look at the gifts you anticipate purchasing and set that money aside. By the time the holidays roll around, you'll have cash in hand to make the purchase or to pay off your credit card immediately without going in debt!

2. Jumping on Every "Deal"

Not every deal in a store is an actual DEAL. Advertisements are designed to reel you in for a purchase, regardless if it's something you actually need or not.

Often times, deals and coupons come in the form of Buy-One-Get-Ones (BOGOs). You're enticed to purchase an item in order to get a separate item at a lesser price. While this is fine and dandy, the "extra" item you're receiving isn't always something you actually need. Always make sure that the BOGO you're purchasing is a necessity, saving you money in the long run.

3. Forgetting to Compare Prices

Make your shopping list and be sure to check it twice! Thanks to the internet, we have the ability to shop for the best pricing available from the comfort of our own home. Companies like RetailMeNot give holiday shoppers the ability to not only compare pricing, but they also give discount codes relevant to what you're searching for.

Remember to always shop pricing and search for discounts. It may take a little extra time, but the savings will add up in the long run!

4. Going on a Spending Spree

'Tis the season of giving, but don't put yourself in debt by giving too much. Purchasing high-priced gifts can be very tempting, especially in the age of social media where it can be difficult not to feel like you should keep up with everyone else.

Instead of focusing on gifts of high monetary value, set your sights on presents with high personal value. Stay on budget and think with your heart this holiday season. Your bank account will surely thank you back.