Holiday spending tips Source: The Consumer Credit Counseling Service
in Atlanta Bankrate.com
Creating a plan
Evaluate how much money to spend
Come up with a figure for holiday spending that you can comfortably
afford, either by saving the cash before the holidays or paying
off the debt within three months afterward. Taking a look at
previous holiday bills may be just enough of a reminder to help
motivate you to prepare a plan and avoid overspending.
Start saving now
If you have not already done so, establish a holiday fund. The
more money you set aside before you begin purchasing, the fewer
items you will need to buy on credit. Even a few dollars set
aside each week will add up between now and December. Any unexpected
income can also be placed in this fund.
Prepare a spending plan
Put holiday related expenditures into categories such as gifts,
clothing, charitable donations, decorations, food, etc. Then
decide how much you will spend for each of the categories. If
your total exceeds the amount you plan to spend, prioritize
your expenditures and reduce where you can.
Start thinking of appropriate gifts
Putting some forethought into your gift giving can eliminate
much of the overspending that often accompanies a last-minute
rush. Make a list of individuals to whom you want to give a
gift. When you have an idea about what to buy them, write it
down, including the approximate cost of the gift.
Smart shopping strategies
Stay within your spending limits
Set spending limits for each person on your list. Carry your
gift list with you so you can keep track of purchases. You can
avoid unmanageable bills by not exceeding these limits. When
you have finished shopping, STOP.
Beware of "buy now, pay later" offers
Sure it sounds appealing, but if you can't afford an item in
December, will you really be able to in March?
Think twice before you buy
Before buying a gift, ask yourself if the gift will be appropriate
for the recipient and within your price range. If not, don't
buy the gift, particularly if you will have to charge the purchase.
Watch the extra impulse gifts; the prices can quickly add up.
Plan to pay your credit card purchases off within 90 days. A
$20 sweater purchased on credit could end up costing you $30.
Put off some gift giving until after
the holidays
You may agree in advance with family and friends to exchange
gifts after the holidays. This way you can take advantage of
the after-Christmas sales and you can shop in a more leisurely
manner.
