Having a financially responsible Christmas
It is tempting at Christmas to pull out the credit cards and put big smiles on your children, spouse, friends and family's faces. It is a temptation we all face, especially when we see something wonderful that we know our child or spouse would just love. However, while swiping is easy, paying isn't. So, here are some tips for keeping a smile on your face before and after Christmas.
1. Revisit last year's expenses: Even if you did not keep track of what you spent, your lender did, so check out your statements, and figure out what damage was done last year. Then commit to stay under that amount this year. Budget it out by person. If you are still paying for last year's Christmas, it is time to put the cards away and have a home made, minimalist Christmas. It may not be as thrilling, but it will mean a lot less stress all year.
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2. Make a list of who you are going to be giving gifts to. This way you won't see something and think of an obscure person you normally would not give a gift to, and buy it just because. So, make your list, and then next to each person's name, write a few gift ideas and a target dollar figure. That way you have a shopping budget that you can stick within. So, pick a range, and make it reasonable. Obviously if you only plan to spend $20 on someone, you won't be shopping in the electronics part of the store for them. By making a list you are committing to yourself to be a wise spender and not over indulge or impulse shop.
3. If you really want to have a financially responsible Christmas, leave the credit cards at home. They are wonderful and convenient with purchase protection, rewards, and an easy way to track your spending. But they're also too convenient, you always spend more when it does not feel like real money. If you take cash out to pay that $35 here and $17 dollars there starts to add up, and hurt a little. Studies show that people spend more -- and more impulsively -- when no actual cash changes hands. So, make a budget then visit the ATM and carry the cash you need for each shopping trip. This is sure to cut down your holiday spending.
4. Don't wander shop. If you wander around the mall looking for gifts, chances are you will spend a lot more. Instead have a specific store and specific item in mind, or at least a set dollar amount you refuse to go over. Or, if you want to be really safe, then go online and buy your gifts there. It is easier, and faster, and it will save you money because you are not as tempted to buy extra.
5. Get something back. Part of a financially responsible Christmas is taking advantage of what is offered. If you are buying plane tickets, do it on a credit card that gives you extra rewards for travel. Rack up the miles, cash back, etc. But only do it if you can and will pay off your balance at the end of each month.
6. Set a deadline. It is amazing how being prepared can turn into spending les. If you have all of your shopping, wrapping, cleaning, shipping, everything done two weeks before the holiday, your urge to impulse shop declines. So, plan ahead and you will not only spend less, but you will have a more enjoyable holiday because you can spend it with family instead of in a line of strangers at the local Wal-Mart.
