Does the holiday season fill your heart with joy or do you go into a panic attack just thinking about the damage that it will do to your budget? If the holiday season has become something that you dread, it’s time to take control and put things into perspective. With mass consumerism and the pressure to spend during this time of year, it can be incredibly easy to throw caution to the wind and rack up a huge credit card bill that will come back to haunt you in the new year. This year, propose to approach the holiday season with your good sense intact. Here are some helpful hints on how to avoid the debt of the holiday season and enjoy a stress-free holiday.
Prepare a plan in advance of the holiday season
Take that old Boy Scout adage to heart when it comes to preparing yourself for the holiday season: be prepared. When the first strains of Christmas Carols come into earshot, grab a pen and sheet of paper and get ready to make a plan. You can try planning early, but it can be easy to forget about your fail-proof holiday season budgeting plan if you draft it in July. Around Thanksgiving, take a good hard look at your current financial template and figure out how much you can afford to spend on gifts, food, entertainment, travel and other seasonal expenses without going into the red. Make a list of everyone you plan on giving a gift to, including co-workers, the mail carrier, etc. It’s time to prioritize: who do you anticipate you will be spending more on? Write everyone’s name on a sheet of paper and put a figure next to their name. Add up all the numbers to make sure that your total figure is not beyond your budget.
Stick, stick, stick to your budget
You can make as many lists as you want but they won’t mean much if you don’t stick to a budget. It can be very tempting to overspend, especially if you happen to come upon the “perfect†gift for your wife, husband, girlfriend, boss, best friend, etc. No matter how perfect the gift may be, don’t buy it unless you can afford it. You won’t be doing your friends, family members and other loved ones any favors by getting into debt. Taking your budget plan to the store as you shop is an easy way to remind yourself not to overspend. Cross off names from your list after buying the corresponding gift or present. If you are buying many gifts, it can be very easy to overspend simply by buying too many presents and losing track of what you have purchased already.
Propose a cap on holiday spending
Chances are that you are not the only one in your family or circle of friends who overspends during the holiday season. If you are serious about spending within your means, discuss openly your concerns with friends and family members. Let them know that you will be setting a cap on your holiday setting, and that your friends and family members may want to consider reciprocating. If possible, get your family to agree on a spending cap. This will help ensure a financially healthy and low-stress holiday season for all your loved ones.
Make your own gifts
A lot of people appreciate the warmth and unique beauty of handmade gifts. If you are lucky enough to have friends and family members who favor handmade items over store bought presents, the holiday season can not only be a great time to save money but a wonderful opportunity to let your talents shine. Are you an expert syrup maker? Do you love to make candles or soaps in your spare time? These can make wonderful and low-cost presents.
