Whether you’re acquiring extra inventory or overhead for your small business this holiday season or you’re going on a personal shopping spree for your friends and family, holiday shopping presents a myriad of opportunities to spend your money irresponsibly. Any reasonably responsible small business owner should know that credit card debt is a trap unless the card is paid off in full every single month. Even though some of the below advice might seem very “elementary”, you’d be surprised at how the magic of the holiday season can corrupt even the most careful spenders.

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Mistake: Not Having A Budget

Having a budget is like Finance 101, and it sounds really simple just to have a rough budget before you go out shopping, but a surprising number of Americans start swiping plastic without any thought as to how much their purchases will total. Before you start buying gifts, make a list of who you need to buy for, what you need to buy for each individual, and so forth. With this list in mind (and in hand, especially if it’s on your smartphone), pick a bottom line number that you won’t exceed. By being honest in your planning and rigid with your bottom line, you’ll be able to stay within your holiday budget.

Mistake: Going “Deal Crazy”

The more money you spend on heavily discounted items, the more you end up saving, right? Not exactly. We’ll admit that it’s easy to see an item at a great price and get swept up in the holiday spirit. However, just because that beautiful 70-inch plasma TV is on sale for $259 or that Roomba that you’ve always wanted is 60 percent off doesn’t mean that you should make a purchase.

Pragmatically speaking, only buy what you (and your loved ones) need. So, if a new TV or a Roomba is legitimately on your shopping list this holiday season, then go for it. If you happen to spot another expected killer deal while shopping, you can also swap it for another item on your list and adjust your total shopping budget accordingly. The point here is that you shouldn’t buy things that you don’t need just because the price is right.

Mistake: Foregoing Other Expenses

Buying presents isn’t the only expense during the holiday season. Due to the cold weather and massive amount of travel plans during this time of year, many families spend more on regular expenses during the month of December than any other time of the year. While travel isn’t necessarily cheap at any time of the year, travel costs reach their peak prices between November and December. Travel costs aside, don’t forget things like decorations, family photos, extravagant holiday meals, and so forth. By determining all of your monthly expenses, you’ll be able to create a more realistic and more accurate shopping budget.

Mistake: Rapidly Accumulating Credit Card Debt

So you have room on your credit card to make additional purchases? That’s great, but that doesn’t necessarily mean that you should buy more things. Remember that, not only will your future bills eventually be due, but zero percent financing offers are also in a limited timeframe. This means that zero percent financing is only valuable if you can pay your balance in full within the allotted time period. While amazing at first, these deals are only good if you’re paying things on time.

Mistake: Procrastinating

Just like pulling an all-nighter and busting out an entire 10-page paper in the true college spirit, procrastination has its consequences, even when it comes to simple holiday shopping. It’s true that holiday shopping might not always be a case of the early bird getting the worm, but you can’t always count on prices getting slashed on the third week of December. Do your research ahead of time and get a good idea of how much each item on your shopping list should cost. Then, do your homework (even if you graduated college years ago) to see when certain items might go on sale. If that’s not going to happen anytime soon, then shop sooner than later to avoid paying more than you have to pay.

Cash Flow Lending Services That Support And Grow Your Business

With the power of accounts receivable lending and the best business loans on the market, your small business can leverage its accounts receivable to lock down on that much-needed working capital. From building expansions to equipment procurement and employee hiring costs, it can be difficult to successfully grow a small company without the help of a small business lender like The Commercial Finance Group. Learn more about how our cash flow lending experts can help your company today by visiting here!