The Holiday season is the time of year that many come to love and dread all at the same time. It is a time to enjoy and celebrate with family and friends, but for many of us it can be a very a stressful period – especially when it comes to budgeting and making ends meet. Although many people feel pressure to make sure the holiday turns out perfect, it is important that we do not jeopardize our own financial well being in the name of making the season bright. Below are some valuable tips on how your wallet can survive this holiday season.
1) Make a budget.
First and foremost, set a limit and stick to it. We need to be honest with ourselves on what we truly have available to spend on gifts and entertainment this year. Be sure to divide overall spending limits by the expenditures we intend to make (ie: gifts, food, decorations, ect.)
2) Make a list and check it twice
For gifts, make a list of all those you are buying for this year, and break down your overall gifting budget to see how much you can spend on each individual. There are many fantastic gift options out there to fit any budget. Another idea is to use this opportunity to be creative and come up with your own personalized gifts that come from your heart and your own skills rather than a department store.
3) Remember that there is a new year to come.
The holidays are like a vicious attack on better judgement. All of our senses are bombarded with beautiful sights, sounds, and delicious smells in every street and every store, and really it is a marketer’s dream. It is a time of year so set apart from the rest that it becomes nearly irresistible to deny the temptation to divulge in that little something special. But the reality is that, as consumers, we are being seduced into believing that this is the perfect time of year to give in to temptations, and step across the boundaries we have set for ourselves, all to create an ideal holiday experience that will impress our loved ones. The true reality is your loved ones really do not need you going broke trying to impress them. Remaining cognitive of this fact can help greatly when trying to make wise spending decisions. Keep in mind that the new year is also quickly approaching, and it is best to start it off on the right foot without the bills of regret flooding your mailbox come January. You will thank yourself in the end.
4) Consider giving experiences rather than gifts
The truth for many of us is that we really do not need all the trinkets we accumulate. We do not need another gadget or toy to add to the collection of gadgets and toys we have already collected throughout the years and holidays past. Instead of breaking the bank for yet another item that will likely be enjoyed for a couple of days and forgotten over time, why not spend on providing your loved ones with well thought out adventures that create memories that will last longer than the object of temporary desire. A promise and plan for a family vacation, or even small trips to an amusement park, zoo, or a camping trip that fits your budget gives more than just a wrapped package under the tree, but a shared memory and experience that can be reflected on for the rest of their lives. Even if it is as simple as giving gift cards (in denominations you can afford) and a Boxing week trip to the mall, at least time that was spent together which can be of more value than anything else.
5) Discuss your budget with your family and friends
By discussing your budget with your family and loved ones, you not only set the stage on what kind of holiday to expect, but this also gives them the opportunity to provide you with gift ideas that are within the price range you can afford, and prevents any disappointments. It is also possible and not unreasonable to request that there are no gifts exchanged this year – especially among the adults within your circle of family and friends. By expressing your desire, you eliminate the feelings of guilt and embarrassment that can come when a gift given is not reciprocated.
6) Track your spending
Remember that budget that was created? Follow it, and make sure all purchases are tracked on there as well. Without having the amount you have spent documented, your budget plans will begin to fall apart. If you do find that you have overspent on one item or another (which can easily happen), you need to figure out where you will have to cut to compensate for that expenditure. Be flexible in your budget and, if need be, think of it as a game. Challenge yourself to come out on top no matter what. By carrying the attitude that you will succeed in the challenge, you are most likely to do so. It is actually quite gratifying!
7) Load up on cash
Before you head out, be sure to have cash on hand for the exact amount you have budgeted, and leave your debit and credit cards at home. This is a simple and effective method to ensure you can only spend what you have without going over.
8) Do not buy into all of the sales hype
As the holiday season gets into full swing, the marketing machine behind every retailer goes into high gear to get you to buy, buy and buy some more. Do your research before hand and know exactly what you need and the price you are willing to pay for it. Watch out for so called discounts that encourage you to spend on more than you were planning to in order to save. You may be able to get the discount you wanted for the item you wanted, but in order to get that discount, you had to spend on something you did not need. In the end, you did not get any further ahead.
9) Use credit very carefully
If you are going to use credit, be sure you use a card with the lowest interest rate possible, and again be sure to document each expenditure on your budget sheet to ensure you do not go over. More over, do not buy into any store credit card offers. Period. Many of these department store credit cards offer a ‘buy now – pay later’ offer that can sound enticing, but really are a loaded gun. They provide a false sense of spending power, and encourage you to spend money you don’t have. Moreover, many of these cards have exuberant interest rates that can keep you paying for months to come. Just do not do it.
10) Enjoy your holiday for what it is
Downsizing your holiday spending does not equate to downsizing your holiday joy. Take time to cherish the traditions, people and memories that the holidays bring, and do not give in to the visionary ideal of what the perfect holiday should be. It is easy to forget this notion amongst the chaos and commotion that the season brings. A great holiday is never dictated by the dollar amount in your wallet, but the amount of meaning you that you give it.
