Christmas is just around the corner and soon our inboxes will be filled with email notifications from different online sites about their ongoing promotions and discounts. Before you get lured in this bait, here are a few tips that you should remember to help you be on track with your wealth and stay out of debt:
1. Make a Budget. Always keep track of your income and expenses and make sure that all financial obligations are covered before you go on a shopping spree. We are so used to this formula to manage our paychecks: INCOME – EXPENSES = SAVINGS. But because of the difficult times, we should all learn to save for the rainy days and we should learn how to manage our income using this formula instead: INCOME – SAVINGS = EXPENSES.
2. Refrain from using credit cards. Credit cards have high interest rates and so is not a wise way to spend. As much as possible, use only your credit cards for emergency purposes and make sure that you pay it in full when the due date comes to avoid the high interest and financial charge.
3. Maximize coupon codes and discount vouchers. If there is really a need to shop, check the Internet first for coupon codes and vouchers to get savings on your purchases.
4. Don’t get a loan to pay another debt. The interest from this new loan will just add up and will not help to get you out of debt.
5. Live within your means. Only buy what you can afford especially if you are paying via credit card, so you will be sure that you have the money to pay for it and be able to avoid charges.
It is not bad to splurge once in a while to reward yourelf especially with the coming of the holiday season. But always remember that things of greatest importance should be given priority and that one should always live within her means.