The Holidays Don’t Have to be a Financial Strain

Who doesn’t love the holidays?  Festive lights, parties galore and gifts being given and received.  It really is the most wonderful time of year.

Well, not so fast.

There’s a significant percentage of Americans who would prefer to put the holidays in the rearview mirror as quickly as possible.

The reason many cite?  Simply put, the financial stress the holidays put on their budgets.

When the holidays come around, too few have enough money set aside to cover the expenses associated with the season.  And when the message is buy, buy, buy, no matter where you look, it takes a strong will to keep the overspending urge in check.

There are, however, ways to help keep holiday spending under control. I’ve listed a few ideas below. Incorporate these suggestions, and you’ll likely find the season to be less stressful and more enjoyable…even when those pesky holiday bills finally arrive.

An aside before I begin. None of these tips are new or groundbreaking in nature. I’ve found, however, that we often forget things that are the most obvious and a little prompt brings the obvious back into focus, making certain aspects of life a little easier. Hopefully what you’re about to read will do just that.

Make a Plan

Organize your thoughts and develop a game plan. Grab a notebook and write down what needs to be accomplished between now and the holidays. This is also the time to set up your budget for all holiday spending – that includes any food and drink that may be out of the norm, decorations, holiday cards and, of course, gifts. Don’t neglect to factor in the little items, they can add up quickly.

Once you’ve determined an amount of spending that is appropriate for your particular budget, it’s time to really get specific.

If you’re hosting a party or dinner, nail down exactly when it will be held, how many people you’ll be inviting and what kinds of food and drink you’ll need to purchase. Give yourself a date by which you want to have everything bought so that you’re not running around at the last minute – stressed – trying to tie up loose ends. This leads to overspending. Be sure to stick to the monetary goals and dates you’ve set.

Make a List

On that “needs to be accomplished” list will, obviously, be your gift list. Sit down and write a list of all the people for whom you want to buy gifts and the budgeted amount you want to stay within for each person. This gift list budget will be a subset, but also a large part, of your overall holiday spending budget. Now’s the hard part, promise yourself that you will not go over the amounts you have set – and written next to each person’s name – on the list, and stick to it!

Before you jump online or head to the stores, try to come up with gift ideas for each of the people on your list. If you have a specific item, or items, decided upon, and a specific price at which you’ll purchase, the actual buying of the gifts will be much easier and less stressful.

With the list in hand, head to the computer, or out to the stores, and one item, by one item, move through the gift list – without spending over the amount you have specified for each individual. With a confirmation of the amount spent noted next to each name, and a checkmark denoting the purchase is completed, you can breathe a sigh of relief knowing that not only is your gift buying complete but you’re within your predetermined budget amount. As long as you’re honest, the numbers won’t lie.

Wrap Up

This process may sound like a bummer. Maybe even a little bah humbugish. But the danger lies in going about your holiday spending without a plan. When there is no focus or pre-planned limit, it’s extremely easy to spend well beyond what you expected. And it’s at that point that you’ll understand why many Americans who dislike the holiday season, feel the way they do.

Planning isn’t that hard, and it will make a difference when it comes to your holiday spending. So, set your goals and limits, keep track of your progress as you go and you, too, can forget the worrying that accompanies unchecked spending and simply enjoy this holiday season.

image courtesy of David Castillo Dominici/freedigitalphotos.net