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November 2005 |
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 Don't Let the Holidays Put Your Financial Year On Ice Debt Matters Holiday Savings Guide We work hard all year earning, saving and building wealth and then we get tripped up on the last hurdle — the holidays. Shopping, entertaining and dining are fun, but it can leave you paying off a big bill well into February or March. Here are some strategies for getting through the season with your budget intact. No. 1: Lose the no-holds-barred attitude. Many people want to celebrate with the rationale that, "Hey, the holidays only come once a year." And all that's true and reasonable, but it doesn't mean going overboard. In fact, if you ask these people whether they plan to spend thousands of dollars on the holidays, they'd say "no way." But if they add up the meals, gifts and entertainment, they'd be surprised what they spend. Plan to have a good time, but also plan to do it within a budget. As usual, the operative word here is "plan." No. 2: Come up with a gift strategy. Like it or not, gifting is a part of the holidays. But that doesn't mean we have to give away the farm. With your close-knit relatives, instead of everybody giving each other a gift, draw names from a hat where everybody gets one gift. You will all save money and still have a gift opening experience. Another opportunity for savings is in the gifts you give to co-workers and neighbors. Most of us spend more than we should to symbolically show our appreciation. Usually, the same could be accomplished with plates of cookies or pastries made at home for little money. No. 3: Buy only what you're shopping for. Keep in mind that retailers are looking to make a big chunk of their profits during the holidays and they will sell aggressively. When shopping for your gifts, stick to your list. Don't be lured in by the sales items. Even if you're lucky enough to find a deal, if you're buying something that is off your list you're really ringing up a holiday bill. If you feel tempted, remind yourself: There will be sales in the spring, summer and fall. Also, eat something before you leave to shop. Otherwise two hours into it you'll be tempted to add a restaurant lunch to your holiday expenses. No. 4: Get others to do some of the lifting. If you're entertaining, plan the meals and drinks a week in advance and ask your guests to bring some of the items. Most of your guests will ask "Is there something I can bring." If you have it planned out, you'll be prepared to answer, "Why yes, there is." Don't be shy about asking. Most people will bring something to the party anyway. It might as well be a part of your plan. No. 5: Emphasize "special" over "pricey." The holidays are about being together. So, look for activities that emphasize that rather than spending. Go out and look at the lights or the decorated store windows, then return home for cocoa and pumpkin pie. Rent a holiday movie and make an enormous bowl of popcorn. If you get a Christmas tree, make decorating it one of the holiday activities. You could even borrow a book from the library on making your own decorations, and for a few dollars on supplies, everybody will have some laughs styling their own ornaments. And really, aren't fun holidays more a matter of imagination than available funds? |
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