Staying frugal during the Christmas season can be very difficult. What’s worse is that you may even land up overspending. This can’t be a good thing if you are trying to repay your debts and get back on top of your credit. Christmas has no lack of challenges in staying frugal – gifts, outings, new clothing to be bought and indulging in sugary foods will tempt you to spend more than you can.

So how do you face down these challenges and still save enough money to pay your debts?

Create a Christmas Budget

Financial planning at its best is through a budget. Take into account all your unique expenses for this month – best to do this with a list. Write up a list of all the people you have to gift. Include any outings you may be expected to attend. Will you be hosting a Christmas meal at home for close friends and family members? Note that down too.

At the end of this process, you will have listed down all the expenses that you have to make during the month. You can now decide which expenses you can afford and the ones you can’t.

Don’t be Cheap, Be Creative

No one wants to be cheap during Christmas, so don’t be; rather be creative. Buying gifts for your brothers, sisters, nieces, nephews, etc can be an expensive affair, so learn how to cut it down. Giving gifts is an opportunity to show your creativity, and not just your artistic creativity.

Don’t focus so much the price of a product.

Emotional Value

Gifts that carry emotional value beat a million-dollar gift hands down. Find something that the person holds dear. It could be an old photography album you found or something you have personally made.

Functionality

A gift that offers functional utility will come in handy for any person. It can be as simple as a UBS storage device or a tool box.

Start Shopping Early

Getting a head start on Christmas shopping gets you the best offers first. It saves you from those terrible experiences of last minute shopping. You will never face the challenge of adapting when you realize the store is out of stock of that particular item you need. Plus, you avoid the crazy Christmas rush.

Keep Tracking your Money

The best way to ensure that you are not overspending is to constantly keep track of your money. With smartphone budgeting apps, you can keep track of your spending in real time. This way you can immediately compare your spending with your planned budget and check much on track are you.

Get what you need and get out

If overspending is a common problem, then this point is especially for you. When your gift or grocery shopping, pick only what you need and when you’re done –leave! This is the best way to stop yourself from getting suckered into buying things that have a good price, but you don’t need.

Skipping one debt payment, even if it is Christmas season, can negatively affect your credit score. So don’t do it!

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