It’s Black Friday; the official start to the Christmas shopping season, here are some useful strategies so you don’t end up with a nasty credit card bill in January.

Set a Budget.  Without a plan or budget, most people will overspend. So, before you start, prepare a list and how much you want to spend per person; this will force you to think twice before buying.

Compare Pricing. With the pandemic dragging on, 71% of consumers plan to shop on-line this year, before you click ‘add-to-cart’ be sure to compare prices from various retailers. If you do venture to the mall, knowing which store has the best price will not only save you time but it will help you avoid paying too much.

Use Cash Not Credit. Due to the pandemic a lot of stores prefer you not to pay cash. One Cash Flow Planning strategy I use all year long to keep track of my spending, is to transfer the amount I want to spend into a separate bank account and use only the corresponding debit card to pay for things.

Make a List. Whether on-line or in-store, sticking to a list will help you avoid impulse purchases.

Set Boundaries. The last couple of years has strained a lot of people’s finances; whether you have a lot of people on your list to buy for; or you’re on a limited budget, talk to your family and friends about setting limits to control expenses.

Keep Track of What You Spend. Do you know what you have spent so far? If not, view your up-to-date statements on-line and make a list of your purchases, if you have paid cash/debit for some things make sure you add those expenditures to your list as well. Be detailed, and don’t forget to include the cost of deliveries, Zoom cocktails with co-workers, wrapping paper, gift bags and treats.

Set yourself a reminder in January.  After the holiday season is over; add up the total amount you have spent, divide it by the number of pays you will receive in 2022; and start setting aside a Holiday Fund for next year.

And remember, some of the best gifts are not costly. Spending time together in person or over Zoom, enjoying affordable activities like skating, sledding, holiday festivals or simply going for a walk to view the neighborhood light displays create wonderful memories.

Furthermore, avoiding a huge credit card bill in January could be the best Christmas gift you ever give yourself!

Happy Shopping!

Tracey

Source:  Original article posted on Advisor.ca  by staff, Invesco Canada Blog posted 21-11-25 by Ido Cohen, 12-11-13 MT 2020-11-27, 2021-11-26

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