Holiday Spending Tips
Updated: January 7, 2009
The coming holidays may be a mixed blessing a combination of seasonal cheer and financial strain.
Busey Bank`s Susan Abbott offers five steps to take now so that you`re not feeling the pinch come January.
Q. What`s the first step?
A. 1 - Identify your downfalls. In past years, have you stayed within your budget or spent in moderation? Indulged a little, a lot or gone completely overboard? Are there certain stores that tempt you to go beyond your budget? Do you shop at the last minute and go crazy? Does your gift list grow the closer you get to the holidays? Are you still paying for last year`s holiday on plastic?
Q: I suppose the second step is to make a budget let`s call it a spending plan. if you consciously plan your spending you`re less likely to have a credit card hangover in january. Sit down before you hit the stores and figure out what you must buy and what you can afford - for gifts, travel, decorating, party clothes, special meals. Set a per person limit. Keep a running expense tally and deduct the amounts from the grand total every day or every week from now until the end of the year. Keep a small notebook in your purse or your car, or carry an envelope with you to hold receipts and note your spending. Don`t forget, many of us will experience higher heating costs on top of holiday expenses come January.
Q: The third step?
A. Make a gift list. If you shop without a list, you`re likely to spend off of the list as well. Consider services rather than gifts, especially for those on your list who have everything or need nothing. Do you need to carry on the tradition of buying for adult siblings, or does a potluck dinner and white elephant gift exchange sound less stressful and more fun?
Q: We`ve got our list and checked it twice...
A. Step 4 is shop smart. Check out the newspaper ads, let your fingers do the walking and comparison shop on-line before spending time, gas and money going from store to store. Read the fine print on gift cards. many come with fine print like inactivity, maintenance or service fees. Plan ahead for how you`re going to pay for all of your purchases. Try to charge only as much as you can pay off in the next month or two. Or take cash with you when shopping so you don`t overspend with credit.
Q: Finally-- the last step?
A. Get a jump on 2007. Open a holiday savings account and make regular deposits throughout the year - a practical and painless way to save small amounts over time
