Avoid the Post-Holiday Financial Hangover: Budgeting Tips for the Holidays
It’s wonderful to be in the spirit of giving, but the holidays can often lead to out-of-control spending. This year, consider some of these tips to help keep your holiday season merry and bright.
Make Your List, Check it Twice – Participating in Secret Santas or Yankee Swaps reduces the number of people you need to buy for, and establishes a maximum amount to spend, without limiting the fun. Encourage your friends and family to create a new holiday tradition where each person can focus on buying just one gift instead of a gift for everyone. Sites like Elfster.com can help make sure the planning is stress-free.
Yule Log Ledger – Forget to sign up for that Christmas gift savings club? Don’t worry, planning ahead will save you time and money. The first step is to determine how much money you have to spend (and remember, it’s the thought that counts, not the dollar figure). Set a cap for how much you want to spend in total or per person because not all gifts are created equal. And be realistic about it; it’s all about the giving, not about how much, or what, you give. Tracking your spending will help keep you on target.
Plastic is on the Naughty List – Christmas shopping should not put you in debt. Pay with cash or Debit whenever possible to avoid going over budget and to keep your credit card balances low. Avoid tempting store credit card offers. Every time you apply for a credit card, your credit is pulled, even if you are declined. Buying Susie that brand new tablet is not worth your future financial health, especially when you know a new tablet will be out at Easter. Opening new cards, even if you plan on paying them off in full, can also be harmful to your credit score. If you check sale flyers, you can save the 10% off your total purchase without having to open up a credit card account.
Dashing for the Deals – Maximize on holiday sales by planning your purchases ahead of time; impulse shopping will cost you in the long run. Never underestimate the power of using Google when it comes to finding online discount codes! Many stores offer free shipping offers or percentages off your total order around the holidays. Take advantage of the discount networks, like Groupon, Living Social, or Amazon Local, to access great deals at local vendors. Save yourself a trip! Bring in a competitor’s flyer and show a lower sale price, and many stores, travel agencies, and even some credit card companies will honor the lower price.
Think Outside the Gift Box – Cookie swaps are fun ways to get together without spending a lot of money. And let’s be honest, who doesn’t love Christmas cookies? This is a great way to get all of the different flavors, and everyone’s secret family recipes, while only making one type yourself. Some of the best gifts are the ones that come from the heart. Pinterest can help you create one-of-a-kind presents with nothing but a glue gun, spare buttons, and a pipe cleaner! Remember those coupon books you used to give to your parents when you were five? Put a new spin on them. Instead of buying your sister another scarf, how about offering to watch your niece for a weekend, or to repaint her living room. Consignment shops are good places to find new or new-to-you presents at a greatly reduced price, especially when buying for children who are likely to outgrow their presents within the next few months. Re-gifting is not a bad thing, as long as you remember not to give it back to the person who gave it to you!
For some sample budget worksheets, and more money management tips, stop by our office. We’re always here to help!