MINNEAPOLIS — 2020 has been a rough year for many people, and navigating the holidays with a small budget, or no budget at all is tough.
Alicia Lewis spoke with Nicole Middendorf, CEO of Prosperwell Financial. Middendorf had three tips to help with scaling back your holidays:
First, the easiest way to keep track of your finances is to make a list and budget.
"So, you don't want to be spending money for the holidays and be buying gifts and items that it takes you 6 months to pay them off afterwards," Middendorf said. "It takes that 20 dollar item and you add on whatever the interest rate is on your credit card… you're then spending 30-35 bucks for a gift that's really not worth it."
She also advises against store layaways. The pay-as-you-go option can cost you in the long run if there are additional interest rates.
"Look at the net cost to you. If you cant afford something… can you really afford it later on? Maybe in your situation right now… maybe you can say here's the deal: as a family, we are not going to do any gifts this year because really, what are the holidays really about."
Another tips: Take advantage of the deals on Black Friday!
And it pays be a pro-active shopper, because the day after Christmas there are a ton of great deals.