Four Tips to Avoid Holiday Debt:
A recent KC Star article on November 27th highlighted four great ideas to help you avoid a "New Year's Debt Hangover"!!
1) Use the 1.5 percent rule: Don't spend more than 1.5 percent of your total gross income on holiday-related expenses. If you're in debt, consider spending less than 1 percent.
2) Pay Cash: Using cash involves a type of psychological pain that consumers don't feel with other forms of payment, said Farnoosh Torabi, the author of the new book "Psych Yourself Rich." Studies have shown people spend 20 percent more with credit cards, she said.
3) Stick to a list: Lists help shoppers stay on task, which can save time and money, Torabi said. A list also narrows your options, whcih is a great benefit psychologically. "Behavior experiments show that when consumers narrow their options, they make better decisions," she said. Your list should include a price range for each item, such as a sweater between $20 and $50, she said.
4) Shop online: If you're worried about impulse purchases busting your holiday budget, stay out of the malls. Sit down at the computer for a goal-oriented session of online shopping. That way you won't be susceptible to the in-store sights, sounds and smells that lead to impulse buys.
USE THE FORWARD FEATURE ON MY NEWSLETTER TO SEND TO A FRIEND AND POST A COMMENT BELOW ABOUT YOUR "COMMITMENT TO" OR "EXPERIENCE" PAYING CASH FOR CHRISTMAS.
WHEN YOU DO, I'LL ENROLL YOU FOR A $30 GIFT CARD DRAWING ON DECEMBER 15TH!!
