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Even with the economy slowly improving, it is important to remember the lessons we have learned from the recession and practice staying out of debt this holiday season.
Set Spending Limits
It’s an obvious first step. Talk to the people you usually exchange gifts with and suggest a spending limit. You’ll likely find that they are glad you brought it up. Don’t be afraid to tell your kids that the holidays are limited this year. They may fuss over it, but you can use the opportunity to teach them a valuable lesson in regards to finances. Ask them to narrow down what they really want for gifts, rather than just listing off what they’ve seen on television or in the store.
Make a List and Allocate Your Budget
Sit down and think about everyone that you need to buy gifts for, along with your other holiday expenditures, and make a list. It can be easy to forget that you need gifts for this or that person, or fail to calculate exactly how much the Christmas dinner will cost, or how much gas it will take to get to Aunt Susie’s house, or that the car needs new tires before you drive to Indiana. “Surprises” such as these can easily blow your budget.
Shop Early for the Best Deals
Try to start shopping as early as possible so you can compare prices. If you put your shopping off until the last minute, you might find yourself unable to get a particular gift or paying top dollar to do so. Don’t hesitate to shop online either. If you can get your purchase tax-free and with free shipping, it’s possible to spend less on the same item than in a local store.
Do ALL Your Holiday Shopping with Cash
Vow not to use credit cards to pay for your holiday purchases. If you need extra cash, try taking on a part time job to supplement your income. Many retailers are in need of temporary extra help around the holidays.
Cut Down on Gifts
Skip the gift giving process altogether or cut down on the number of gifts you give. If you have a large family, draw names from a hat and exchange only one gift. Instead of passing out gifts to your family this year, you could take a vacation or a trip somewhere. It does not have to be exotic or lengthy, even just a cabin or condominium somewhere out of town where you enjoy each other’s company would be a nice change of pace.
Give the Gift of Time
Put up the bookshelves you’ve been promising your mother, take a day trip somewhere with your nieces and nephews, spend the day watching movies and relaxing with your kids. Give someone special a massage or a manicure. Not everything needs to cost a lot of money. Sometimes your time is the most valuable thing you have to give.
Handmade and Homemade
Make homemade gifts this year, whether it’s with a special talent that you have or something like a photo scrapbook or edible gift. Think about what you do best and how you could fashion that into a gift for someone.
As you can see, much of the plans for staying out of debt this holiday season are exactly that: plans. The more you plan, the less money you can expect to spend. |
