Surprised by the holidays? Just kind of snuck up on you? Many people take this as a cue to start racking up some hefty credit card charges, as if they have no choice in the matter. “Then January rolls around, and we’re like, ‘Yikes, who’s paying for this?’” Malani said.Money regret usually results from not planning — and last-minute planning isn’t really planning at all.
Malani recommends automating holiday spending with a small, monthly amount. “When the holidays roll around, they can put all expenses on their credit cards to hack those rewards points,” she said. “They know they have the funds to pay off the bill in full.” How to do it: Figure out how much you spend or would like to spend. Set up your savings account to automate one-twelfth into a designated account. “The money accumulates all year, and you can blow it guilt-free at the holidays,” Malani said.
Make a list, check it twice. It seems obvious, but every person and animal you plan to buy for needs to be on that list. “Put a dollar value by their name and add up all those numbers,” Malani said. If you don’t have that money now or you won’t have the amount saved up, then you’re making a plan you cannot afford. “Hashtag harsh, but true,” Malani said.