5 Biggest Money Mistakes You Should NOT Be Doing This Christmas Season!

Is your holiday to-do list already a mile long? With all of the office parties, family gatherings, church obligations and maybe even school programs, it's no wonder. There are celebrations to be had, gifts to be wrapped, traditions to be honored and of course food. But don't worry, we're here to help you make it through the season!

We’re at our happiest every Christmas season but if we're not careful, January 1st will be accompanied by a lot of financial pain. A lot of people’s financial problems are because of these mistakes they keep on doing every December. We've all made at least one of the following mistakes during the holiday chaos at some point. But it doesn't have to be this way! We can avoid making these same blunders again if we set our minds to it.

In general, receipts protect the buyer, seller, and their businesses from any legal action that may arise. They also make the transaction more transparent by providing information such as:

• The names, addresses, phone numbers of both parties involved in the transactions  

• A list of all goods or services rendered 

• A breakdown of what was paid including prices

Shopping for gifts can be tough, especially when you have to buy a present for somebody you don't know very well. Even if it's somebody close to you like friends or family, there's always the potential of giving them something they don't want – like a shirt that doesn't fit right or an item they already got from somebody else.

If someone doesn't like a gift, they can return or exchange it with very little hassle. Some stores do allow exchanges without a receipt, but it's definitely easier with one.

This is what happens when you shop for gifts too close on Christmas Day. You forget about what the recipient really wants and instead, you buy something too generic (like a random picture frame or a boring mug). It’s the thought that counts, really. But if you want to get your money’s worth, get something that your gift recipient will remember you for. It might not be that stuff that’s on their wishlist, but something that they can use in their daily lives. 

Keep in mind that time is also of essence this season. If you want to save money and stay within your budget, it is essential that you start your shopping early. This way, you have time to figure out what people on your list actually need instead of just grabbing any old thing. When you wait until the last minute, not only are items usually more expensive, but you're also much less likely to stick to a budget because you'll be trying to hastily check people off your list.

Maybe the festive spirit really got into you that you volunteered your car, your house, your credit card to prepare lavishly for Christmas parties and dinner. This will put too much strain on your finances! While it's nice to be generous this time of year, sometimes you need to put your own needs first. This year, try saying no or suggesting a different activity that doesn't involve hosting everyone at your house. A potluck-style gathering is a great option for this year. With a potluck, each guest brings one dish, beverage, or party supply. You'll save money on food and drinks this way.

Or…If you have several people living with you, it's best to split the housework so that everyone pitches in. This includes utilities and grocery shopping. Not only will this help ease the financial burden, but it'll also cut down on how often you need to restock your home.

Shopping without a limit will bring you more burden this season. You might end up thousands of dollars poorer come January 1 and you’ll stress about it for the whole 2023. Start your New Year happy and your bank accounts intact by setting a maximum limit of how much you will spend on gifts, decors, food, and party contributions. Take everything into account even your outfit, the gas, emergency expenses and last minute gift shopping if you tend to forget relatives from your shopping list. 

How much should I budget for Christmas? 

The average American will spend about $507 on Christmas gifts this year, but that doesn't mean you have to follow suit. In fact, a more manageable and sustainable rule of thumb is to spend no more than 10% of your monthly income on presents. So if you earn approximately $10,000 each month, you should give yourself a budget of $1,000 maximum for Christmas gifts.

It’s easy to buy Christmas gifts and bill everything to your credit card, but paying it afterwards is not easy. Try to avoid using your credit cards during the holidays. If you can't buy it now, don't put it on a bill for later. After the holidays are over, you could be looking at a big debt that you've accrued. 

The holidays are a great time to surround yourself with loved ones, but materialistic things shouldn't be the only determining factor of how you express your love. This year, try focusing on making quality time spent together instead. Not only will this prevent you from going broke, but it'll mean so much more in the long run!

Tip: Don’t Make Christmas A Competition 

 Don't let the holidays turn into a competition over who has the most money to spend. Instead, focus on creating memories and spending time with your loved ones – or even by yourself.

Being honest with ourselves, we've all made one of the five mistakes above during the hectic holiday season. However, it is avoidable if we commit to not making those same errors again. With some mindfulness and self-control techniques, you can enter 2020 feeling relief financially instead of pain come January 1st.