Holidays
HOW TO MAKE MERRY WITHOUT GOING BROKE This week, Gail explains how to avoid tricks designed to get you to overspend this holiday season
Helpful List
If you don’t want to start 2007 with a debt-induced hangover, here is my list of things to think about (warning to parents: Don’t let young children read this!):
1. There is no Santa Claus. You are not personally responsible for fixing this admittedly disappointing fact.
2. Decide ahead of time how much you can reasonably afford to spend. Include holiday food and decorations as well as gifts.
3. Make a list and check it twice. Don’t buy what isn’t on it. Merchants — including online stores — count on our lack of discipline. That’s why they put so much effort into enticing displays, “early bird specials,” and internet ads. Impulse purchases or “extra” gifts will quickly blow out your budget.
4. Re-read No. 3. Especially if you are male. 45 percent of men shop without a list, a sure-fire way to over-buy.
5. Once you determine how much you can or want to spend, convert this to cash and put it in an envelope. Use this to make your purchases. (Yes, I recognize that there is a risk of losing this money or having it stolen. I’m not suggesting you walk around with $600 in your back pocket. Just take what you plan to spend. Lock the rest in your car; you can always go back to the parking lot to get it.)
Paying for something with cash as opposed to a check or credit card changes the entire psychology of shopping. It makes you realize how much you’re actually spending. And every time you open the envelope you’ll have a tangible reminder of how much you’ve got left to spend. It’s powerful.
6. If you can’t come up with all of the cash to cover your holiday purchases, use a debit card. If you have to use a credit card, only charge what you know you will be able to pay off within a few months.
7. Avoid shopping when the “frenzy” is at its peak. It’s too easy to get caught up in the crowd mentality. This includes the day after Thanksgiving (a.k.a. as “Black Friday” *), the weekend after Thanksgiving, major advertised sale days, and Christmas Eve.
8. Even if you prefer to shop in person because all the decorations get you into the holiday spirit, research prices online before you hit the stores. If you find what appears to be a good deal on an item, print the screen price and take this with you when you head to the brick-and-mortar stores. “Almost every store will match the online price,” according to Herman.
9. Whenever possible, look for freebies. Here’s one: Consolidated Credit Counseling Services has a free “Holiday Survival Guide” you can download. It includes additional helpful ideas to avoid the all-too-common post-holiday debt hangover, as well as handy worksheets for budgeting and keeping track of your spending. You’ll find it at: www.consolidatedcredit.org. You can also order this by phone at: 800-728-3632.
10. Remember that for practically everyone on your list, the most precious gift you can give is yourself. Whether that’s offering new parents 10 hours of free babysitting so they can re-gain their sanity, taking grandma out for a special lunch, or giving everyone smaller gifts so you can afford that family camping trip in the spring.
Time is truly the most precious commodity we have. Use it wisely. Give it generously. And don’t forget to set aside time for yourself so you don’t lose the holiday spirit because you’re so caught up in holiday spending.
Let the holidays begin!
