Here’s one way to make 2011 a happy new year: Rein in holiday spending. Whether or not you’ve started your holiday shopping, it’s not too late to create a holiday budget and stick to it. Here are some simple steps:
1. Decide how much you can spend. Holiday money should come from your current disposable income. If you use credit cards for convenience, make sure you track your spending so that you don’t go over budget. Save some holiday money by cutting back on extras such as movies, dinners out or coffee drinks until the holidays are over.
2. Budget for everything. There are a lot of holiday expenses people don’t think about like the cost of shopping (gas, parking), decorations, food and drink for parties, greeting cards and postage, out-of-town gifts, travel expenses and charitable contributions. All of these items should be in the budget.
3. Make a complete gift list. The list should include everyone to whom you plan to give a gift — relatives and friends, piano teachers, mail carriers, etc. And don’t forget the office gift exchange.
4. Decide who’s getting what. For each person, set a firm “no more than” purchase price for that gift and be realistic. If disposable income is tight, think about giving greeting cards or “make or bake” gifts like cookies, pumpkin bread or handmade ornaments.
5. Set expectations with family members, especially children. If gifts will be minimal, it’s advisable to talk to your children about their expectations. If it’s not too late, discuss reasonable and economically feasible gift-giving tactics with family and friends.
6. Check your emotions at the store door. To keep the feelings out of shopping, keep a list of other financial obligations like credit card debt, car payments and mortgage payments on a slip of paper in your wallet. When tempted to overspend, remind yourself of what you owe.
7. Work the sales, don’t let them work you. If a gift on your list is on sale, buy it. If it’s not on your list, don’t buy it, because you’ll end up going over budget. Also, avoid the temptation to open new credit lines at retail stores just to save ten percent or more on your purchases. These cards generally carry higher interest rates, so your actual savings may be minimal.
8. Keep track of spending. Instead of stretching your budget with credit cards, try “the envelope trick.” Set aside budgeted spending cash in an envelope for each household member. When the money’s gone, the spending is done.
- How to Save Money on Christmas Spending (ismckenzie.com)
- Have Yourself a Budget-Friendly Christmas; 9 Ways to Trim Your Holiday Spending (Part 1) (quizzle.com)
- Holiday Spending Up: Are We Blowing Our Budgets? (blogher.com)
- Holiday Shopping Without Breaking the Budget (blogher.com)
- How to Have a Debt Free Christmas - Set a Budget For Gifts During the Holidays (rock-kool-dadie.blogspot.com)
