Creating a Plan for Holiday Spending No, it can’t be! Just as we are packing away summer’s paraphernalia, retail stores are bulldozing ahead making sure we are aware that the holidays are coming. Halloween will be here in no time with Thanksgiving and the holiday season not far behind. But is your pocketbook ready? Before the hustle and bustle begins take control over your finances so they do not take control of you. Establish a strategy to get you through the next few months on track and on budget. Here are a few tips to help you get there: Establish a holiday spending strategy. Determine how much you can afford to spend. To get a realistic amount, look back on what you spent last year. Was your budget able to support what you purchased or did you overspend and have to put some items on credit? This year, make it a goal to refrain from overusing credit to subsidize your expenses. Create a budget. After you know how much you can afford to spend, determine what segments of the holidays are important to you and designate your money towards those areas. This will make it easier to cut back on the less important elements. Then decide how much are you going to allot for the different expenses - costumes, food, gifts, and decorations? Assign a dollar amount to each of these spending categories. Keep track of your spending in these areas. If you see that you are going over your budget, you can take some funds out of a different expense to cover the amount. Cut back on some of your everyday spending. You have already determined how much you are going to need to cover your expenses for the upcoming holidays. It is now time to figure out where you are going to get the extra cash. Examine where you are spending your money today. Are you eating out? What are you doing for entertainment? Forgo some of these activities and take the money that you would have been spending and put it in your holiday spending account. It is important that you have a special account, or even a holiday savings jar, so that this money is separated from your regular account and is used solely for holiday purchases. Use coupons. Coupons are a great way to save money. When you go shopping you can take the amount that you saved from using those coupons and put that in your holiday savings account. Shop early. It’s never too early to start buying the items that you are going to need. Look for the sales. But be careful, you might forget what you bought when the holiday finally comes around. Keep an itemized list of what you bought so you can refer back to it when needed. Make it a goal to reduce your stress this holiday season. Have a plan to know how much you are going to spend and start saving now. You will be happy you did come January!
Posted on: Tue, 15 Oct 2013 16:35:28 +0000
Trending Topics
Recently Viewed Topics
© 2015