Post on 13-Apr-2017
The holiday season is known as “the most wonderful time
of the year.” Ideally, your finances should stay in
wonderful shape throughout the season, but this is hardly
the norm.
Consumer counseling agencies report that, in January and February,
there’s a 25 percent increase in the number of people who
need help with debt. This increase is largely fueled by
the holiday shopping season.
If you create a holiday budget ahead of time, you can stay out of financial hot water.
Here are six tips you can use to create a holiday budget
and stick with it.
Holiday shopping usually begins on Black Friday, but that doesn’t mean you can’t
start saving money well before then.
If you open a holiday savings account, you can deposit
money into it throughout the year and even earn interest
on the account.
Create a list of all your holiday-related purchases, whether they’re gifts, food,
travel expenses ordecorations.
Decide how much you’re going to spend on each item.
Once you’ve locked in a number for each item, you’re
in a better position to avoid overspending.
Now that you have a budget, it’s time to make a list of
everyone you’re going to buypresents for. Make a note of
how much you want to spend on each person.
Prioritize your gift giving, and if you feel that your
finances are stretched thin, don’t be afraid to tell some of
the people on your list that you won’t be exchanging gifts
this year.
You can give a gift without needing to buy a gift. Make
something of your own, using whatever natural talents you
have. You can make a scrapbook, compose a short
story or knit a scarf. The possibilities are endless.
If you have an old holiday present that someone gave
you years ago, yet you never use it, consider re-gifting
that present to someone who might actually appreciate it.
You want plenty of time to compare prices and find
great deals. If you wait until the last minute, you’re going
to be rushing through the store, exhausted and stressed
out.
If you have to use credit cards, don’t use more than
two. That will make it easier to keep track of your
spending.
The cards you use should have low-interest rates. Stay away from cards offered by
department stores.
If you have a credit card with no balance, use that one to
pay off your upcoming balance in full. Use the other card for purchases that you
intend to pay off over the coming months.
Spending money is arguably the most stressful part of the holiday season. If you begin the season with a financial
plan in place, it will help take some of the burdens off of
your shoulders.