A lot of us experience economic distress from holiday shopping. But this is avoidable! If you have lots of people to shop for, try a “zero based” budgeting system – it could help prevent you from being one of the many people who will go into debt buying gifts!
What’s a “zero-based” system?
A “zero-based” system essentially means having a specific, total dollar amount that you’re willing to spend overall – and sticking to it!
Split that total up, assigning a specific dollar amount to each person on your list. Once you spend that amount, you’re DONE! Having zero dollars left is actually a good thing in this situation!
To be successful with this, make sure you take into account price changes, taxes, and shipping costs. This will keep your budget accurate.
Another tip is to use a specific card, or pull out the total amount in cash. This can help make sure you don’t go over budget. And remember, once you hit zero, you’re all done and can’t spend ANY more.
You don’t want to start off the new year in debt! Utilizing a zero-based budget can keep you honest about your finances and help you stick to a financial plan that works for you.