Holiday Spending
Preparing for Holiday Spending
For many people, the holiday season is one of the most favorite times of the year. But after all of the celebrating, it can also be the most regretful. No one looks forward to receiving those credit card statements which can take years to pay off; especially when paying the minimum amount allowed. According to "In Charge", holiday gift buying is the number one category in which Americans overspend each year. The average American Household with at least one credit card has nearly $9,200 in credit card debt (CardWeb.com).
A good rule of thumb to follow when trying to avoid over-spending is, unless you are absolutely sure that you can pay them off within a month or two, do not use credit cards for holiday shopping. If you are truly serious about finding ways to cut down your debt when preparing for the holidays, you should start the New Year by creating a plan that you can stick to throughout the year. For example, many people are adamant about paying ten percent in tithes to their church. Although there is nothing wrong with following that pattern, you should be just as determined to pay ten percent to yourself. Not only will this prepare you for the holidays, but also for a rainy day.
Once you know how much you can afford, the first thing to do is create a budget that includes gifts, traveling, gift wrapping, entertainment, decorating, and purchasing those festive outfits that you feel you just can’t do without. However, instead of buying those entire new outfits, why not purchase a festive blouse or jacket to match those pants or skirts that you already have hanging in the closet? As the ladies are aware, you can mix and match black with anything! When it's time for gift wrapping, place that extra touch on your gifts by taking the time to wrap them yourself, while saving money at the same time.
The next thing is to prioritize your list and be mindful that you cannot purchase a gift for everyone. Remember, you are not breaking any etiquette rules by informing your co-workers in advance, of your decision not to participate in the office gift-exchange activities this year.
Suggestions for Purchasing Gifts
● The most important thing to remember when preparing to shop for the holidays is to stay within your budget and to shop as early as possible. It is easy to get caught up in all of the holiday bliss and forget that you have set limits on how much you intend to spend.
● According to regiftable.com, when you receive gifts that you cannot use, think about giving them to someone else who might be able to use them. You can re-gift items such as wine, inexpensive jewelry, books that are in mint condition, or unopened perfume.
● It is always a good idea to give out of joy, not out of guilt. If someone who was not included on your list should give you a gift, do not feel obligated to run out and purchase one in return. Instead, consider writing them a personal thank you note on some letterhead that you can create on the computer.
● Give gifts from the heart – such as: home-baked goods, baby sitting, driving the elderly to a couple of appointments that you have scheduled for them, mowing the lawn, or performing other household chores. You will be pleasantly surprised when you realize how much of an impact your kind gesture has on family and close friends; especially those who could really use the assistance.
Travel
When calculating how much you will need in your budget for travel, be sure to include coverage for the length of the trip, rental car, fuel, flight, lodging, meals, entertainment, and incidentals such as film, tips, snacks and souvenirs. For peace of mind, American Automobile Association (AAA) recommends calculating extra for an emergency fund; this is especially handy when traveling with children.
Plan trips by booking hotel and airline reservations well in advance. Although connecting flights add to your travel time, you can save up to several hundred dollars by not flying nonstop. Be sure to checkout Visitor Information Centers for discount passes or package deals when planning trips to attraction parks and recreation centers. In addition, many travel agents have package deals on flights, hotels, and tours; see American Society of Travel Agents (asta.org). Other websites such as holiday travel.com provide great all inclusive package deals; however, if you have not already made arrangements, more than likely, you won’t reap the benefits until next year.
When driving to your destinations, the American Automobile Association suggests the following:
● Slow down; for every 5 miles per hour that you drive over 60, it’s like adding a dime to the cost of a gallon of gas. Also, the faster you drive, the more fuel the vehicle burns.
● When renting, it helps to choose a vehicle that gets the best gas mileage, it’s also more beneficial when filling up at the pump.
● Choose a route that enables you to travel at constant speeds and bypass congested areas as much as possible. Unless you are taking a scenic route, avoid two-lane roads with lots of stop signs and traffic signals.● Start trips early in the day while traffic is light, and plan meal stops to coincide with periods of traffic congestion.
If you are one of those people who did not book early and are planning a “Staycation” or have out-of-town guests, take a few moments to visit GoMiamiCard.com/Attractions. You will be surprised to find at least 40 tours/attraction sites right here in our own city!
Meal Planning
Since the holiday season is such a busy time of the year, most people try to find shortcuts when preparing meals. They try to save time by purchasing vegetables and produce that are already peeled and/or cut-up. However, you can cut down on expenses if you take the time to peel and cut up your own vegetables such as onions, green peppers, celery, potatoes, broccoli, and cauliflower. Be sure to eat a filling meal before going shopping. This will discourage making purchases that are not on your list. It will also help you to avoid the temptation to purchase that great smelling food that is being prepared in the deli.
When shopping, remember that supermarkets conveniently place higher priced items on the shelves in the middle, where they are easiest to see and grab. Always check the shelves above and below to find the bargains. In addition, shopping in bulk at warehouses can be great for saving and storing extras for later.
Be sure to utilize websites such as www.thegrocerygame.com and www.coupons.net to find money-saving tips, coupons, and regional sales information. In addition, supermarkets normally provide weekly newspapers and store coupons for bargains. Snipping coupons may be a bit time-consuming, but according to Promotion Marketing Association’s Coupon Council, 20 minutes of clipping coupons can reduce your weekly grocery bill by 20 percent, which adds up to approximately $1,000 or more per year.
When hosting, it is always a good idea to include guests when planning the menu; then you should have no problem asking them to bring a dish. This can save time and money for all involved.
Budgeting during the holidays can be painful in the beginning, but when the new year rolls in, that broad smile will take the place of all of your pain. Imagine being debt free from those dreadful holiday expenses!