The days are getting shorter, the mornings are getting colder, the leaves are getting redder… Yep, it’s the holiday season again, and Thanksgiving and Christmas are rapidly approaching. Once again, we are panicking as we try to figure out how to juggle a limited budget with travel plans a gift-buying. Add to that higher heating and electric bills during the colder, darker days. Top it off with the psychological impact of less direct sunlight and daylight, and it’s no surprise that money problems seam to rear their ugly head about this time every year.
It is amazing how easy it can be to get hundreds or even thousands of dollars in debt in a very short time. One active day of Christmas shopping, being immersed in the department store holiday cheer and festive decor, and you can suddenly find yourself having spent a few hundred on just three or four items. And you haven’t even gotten to Dad or Aunt Mildred, that was just Mom and the husband. Oh yeah, there’s also $1200 in airline tickets to visit the family for Thanksgiving. And…
To keep your finances in check this time of year, there are two basic tactics that work well.
The first, and by far the most important, is to have a budget and stick to it. Know, before you start, exactly how much money you have to spend on all the travel, meals, and gifts you want, and stay within that value no matter what.
I know, I know, this is easier said than done. Here’s one method that works well for me when shopping: determine the amount I can afford and want to spend, place that amount in cash in a separate wallet, and do all my Christmas shopping from that wallet. Sure, it’s easy to keep records of my credit card purchases, but by working with cash I instantly and accurately track exactly how much I have left without missing anything. Once the wallet is empty, I stop buying. Any other gifts have to be service-oriented or hand-made, either of which are just as appreciated (more so, in some cases), and each of which are more personal.
Another way to stick to the budget is to do all your ’shopping’ on paper before you actually spend anything. Shop around, visit several stores and sites, and decide what you are getting for everyone on your list. ‘Everyone’ means everyone: parents, kids, family, coworkers, friends… if they are getting anything from you, they should be on the list. You can then see, in advance, exactly how much it will cost to do what you want. Don’t forget to include wrapping paper, gift cards, and approximate postage on the list! Once you have a list that is within your budget and includes everyone, then head out and take care of it all in one swoop through the mall. Only buy the items on the list, and you come out on budget and feeling great!
The second tactic that I use takes a little time to develop (it’s too late to implement it this year, for instance). It is simply to put away a little each month for Christmas. Let’s face it, we all know Christmas is coming; I mean, it’s no surprise that December 25th is a gift-giving day from year to year. And we all know it’s easier to come up with a little extra money now and then rather than having one big, sudden hit on the credit card.
How much do you want to have available next Christmas? $600? Put away $50 each month into your Christmas savings account. Then when Christmas comes, you’ve got your available funds right there in front of you. You can, with a little practice, make this account available for all gift-giving, not just Christmas; however, in the first year or two, practice making it event-specific until you learn to manage it well.
A final tactic that applies to all shopping: always pay your credit card off in full every month if at all possible. Paying 18 percent interest just makes everything you buy that much more expensive. If you’re on limited funds, the last thing you need are extra charges. In fact, use that money you would be spending on interest to fill your holiday gift account… you may be surprised just how fast it adds up.
I hope the coming holidays see you well and happy. I wish you well in your gift-giving project this year. Working with a budget is a challenge, but when you’re done you feel soooooooo good!
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From the editor
I did it! I had my first acupuncture appointment a few days ago. The man who worked on me has been practicing for over 20 years, doing both acupuncture and chiropractic treatments for a variety of ailments. I was surprised at how little I felt of the needles (well, except one). It was very relaxing and calming to just lie still for a while while we chatted and waited for time to pass during the treatment.
I don’t know that the acupuncture itself made any difference in my overall wellness, there was certainly nothing in particular that seemed to be a direct result of the needles (the neck chiropractic adjustment was the big fix, I think). However, overall I came out feeling healthy, energetic, and good, and that was the desired effect. I’m glad I went, and I will probably go again when I need another neck adjustment.
Healthy thoughts,
Jeff
