Although your intentions are good, you are likely to overspend again this holiday season. You probably know you should set a holiday budget, and you may have written expected costs next to each item on your shopping list. However, even if you enter the holiday shopping season with a budget in mind, it can be very difficult to stick to it!
In most cases, people tend to rationalize overspending. You and I both know that money is no substitute for love, but may feel the need to spend equal amounts on each recipient to avoid the impression of favoritism. Or we feel pressured to spend a certain amount of money because we were especially generous last year. Before you start shopping, have a family meeting, so everyone will know what to expect.
Start fresh, and take your current financial situation into account. Nothing you could buy feels as good as starting the New Year in the black.
Here are 5 tips for a Debt Free Holiday Season:
1. Budget Everything – Not Just Gifts
If you want more joy and less stress this holiday season, create a holiday budget that includes decorations, cards and stamps, food for parties, holiday clothing and dry cleaning costs, babysitting, teachers' gifts, and year-end tips for service people. Gifts are only one line item, and they may not be your biggest expense.
2. Spend Time, not Money
Parents tend to make costly decisions when they're rushed. Plan a family trip instead of buying gadgets. You'll treasure shared memories long after today's technology is obsolete.
3. Leave the Credit Cards at Home
Leave credit cards at home to avoid overspending. Studies show people spend about 15 percent more when they pay with credit cards. If you must use a card, carry only one.
An even better idea is to bring cash! Maximize savings by carrying large bills, not a pile of ones, fives and tens. You'll be less likely to break a $50 bill to buy a latte or a silly stocking stuffer.
4. Write Down Each Purchase
Often, we don’t realize how much we are spending as we shop through the mall. Take the time to write down each purchase as you make it. This will force you to think before buying that extra little item you see.
5. Don’t Buy Gifts for Yourself
Try to avoid the “One for thee, and one for me” mentality. According to the National Retail Federation, shoppers spent an average of $108 on themselves last year. When you see something you like, write it on a wish list. You'll be ready when your spouse and kids ask what you want, and they will be happy to buy something you'll really enjoy.
Focus on having fun and making memories, not on buying more stuff this season. When you do, you'll make your family rich in the ways that really count. The true holiday spirit is in your heart and your home, not at the mall.
