Holidays. A lot of people’s favorite time of the year due to sales, gifts, vacations and if you’re a college student…that 3-4-week break from school. I know, I know…I am posting this about two months before the holiday season, but I have my reasons. Just stay with me.

Advertisements for the season will be popping up soon! According to MagnifyMoney’s annual post-holiday debt survey, Americans racked up a whopping $1,000 in debt during the holiday season last year. Then on top of that, 30% of respondents indicated that they went into the holiday season still paying off debt from the previous year! Just imagine all the credit card interest that those individuals are paying. I am sure none of us want to be paying for our holiday excursions (e.g. trips, gifts) 12 months after we have purchased them. 

So how do we avoid this holiday debt that the average American will take on? Here are three approaches we can all utilize in order to take this holiday season by the horns:

• Start saving for the holidays earlier in the year. We all know we shop more during the holidays so why do we continue to act surprised when the season rolls around? Depending on how much you want to spend, you can start setting aside an amount you’re comfortable with 3, 6, or even 9 months in advance. If you started saving just $50 a month for 9 months, you have $450 for the holiday season! That can easily cover a round trip flight to see family or even get a few nice items for that special someone.

• Catch those post-holiday sales. I am a firm believer in never paying full price for anything if I don’t have to. Literally the day after Christmas, stores are trying to get rid of their inventory to make room for the spring items. They move inventory by slashing prices. That sweater, shoes, or even that computer you were looking at...just got cheaper all because you waited a day or two after Christmas.

• Set a budget guys. According to a survey performed by Experian, the average person spends roughly $900 during the holiday season. I know you guys might be tired of hearing the “B” word but it is essential! This is one of the key ways we can all avoid getting into the holiday debt trap. Granted, you might go over by a little (or a lot) but it is a good way to hold yourself accountable and be mindful of your spending.

Those approaches aren’t too bad right? Whether you are traveling to see family, splurging on your significant other, or simply treating yourself to something nice, try using one of the above approaches this holiday season. Not only will you avoid the debt, but your pockets will thank you in the long term. As always, I want to hear from you! What are some ways you save money during the holiday season? What are you planning to splurge on this holiday season?  

Holding you accountable,

DWM