LIVONIA, MI (WXYZ) — Holiday Financial Shopping Tips
- When it comes to holiday shopping, what’s one way to avoid debt?
Don’t add or bury yourself in debt. A smart way to avoid adding or burying yourself in debt is to shop with only cash. If you have to use a credit card, ensure you only charge what you can payoff in-full at the end of the billing cycle.
- Should shoppers avoid opening credit in order to get discounts?
Yes, avoid opening new credit lines. While those store credit card offers can be tempting, avoid opening up any new lines of credit. Doing so, especially if you already don’t have the greatest credit score, can further hurt you.
- What about emergency savings? Is dipping into an emergency fund for holiday shopping a bad idea?
Holiday shopping isn’t an emergency. You should not be dipping into your emergency savings account to cover holiday spending. Emergency savings should be applied towards home, auto and health emergencies, for example. If you do touch your emergency savings, make sure you replenish it as soon as you can.
- How should we be budgeting for the holidays?
Set a specific budget for each person. Budgeting for each specific person you’re buying for will allow you to easily understand where your money is going. While an overall budget is sufficient, a specific budget for each individual will help you avoid busting your budget.
To learn more about McKague Financial visit www.mckaguefinancial.com