Posted on Thursday, 26th November 2009 by admin
The holidays are a great time of year, but it’s also a costly one. Many people every year pile up credit card charges during the second half of November and December that they have to pay off over the course of the next year, just in time to pile up charges again. There are some costs this time of year that are difficult to plan for, but the more thought you put into a holiday budget, the more likely you are to make it through the season without credit problems for yourself in the future.
Create A Gift List: As a child, you probably created a list of gifts you were hoping to receive heading into the holidays. As a financially responsible adult, the list you make should have a different focus. Think of everyone in your life that you feel like you should purchase a gift for this holiday season. Many holiday shoppers end up spending more then they budgeted for because they’re buying last-minute gifts for people they forgot about when they put together their original holiday budget. Family and friends are natural choices, but don’t forget your co-workers! In a year where layoffs have become commonplace, it’s not a bad idea to stay on your manager’s good side!
Create A Gift Budget: Once you’ve made your gift list, create a budget that is realistic and that you will stick to no matter what. To stick to the budget, prepare an envelope for each person on your list and fill that envelope with the amount of cash that you feel is appropriate. It takes discipline to stay within a budget but a lot of problems that people have when it comes to spending too much during the holidays are the result of a lack of strict budgeting. If you start shopping early you can avoid the extra costs of rushed shipping that last-minute shoppers have to pay. Don’t be afraid to be among the crazy shoppers in line at 4AM on Black Friday to find the best deals and stretch your budget as far as it will take you.
Budget For Travel: Experts predict that holiday travel will increase this year compared to last year and the amount of money you spend travelling should be accounted for in your holiday budget. If you’ve planned expensive travel, you may want to consider reducing your gift budget this year—people are likely to understand in an economy like this one. In fact, 75% of respondents to a recent survey indicated that they will spend less on gifts this year than they did last year.
Budget For Miscellaneous Expenses: There’s no getting around it, this is an expensive time of year. Many of the things we spend money on are smaller items but they add up–things like food for holiday meals, stamps for holiday greeting cards, wrapping paper, and holiday decorations can become a major cost when added together. One of the best ways to plan ahead for next year is to shop for holiday decorations and supplies just after the holidays are over, when most items are as much as 75% their original price.
Be Creative: If you don’t have the budget to give gifts this year the way you usually do, it doesn’t mean you have to go into hiding fearing the wrath of disappointed relatives! Plan an afternoon outing together with the people you care about. Instead of unwrapping presents, create memories by spending time with the people you care about.
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Tags: Holiday, Holiday Overspending
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