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Why is it that ordinary, everyday stuff that we see 11 months of the year and don’t need to have – all of a sudden become THE hot ticket item during the holidays and we now HAVE to have it? Have you noticed how during the holidays that electronics, new gadgets, fancy toys and big-ticket items just seem to beckon us and persuade us that life can’t go on without them? You know the items. Big screen TVs, the latest video game boxes, and smart phones that are smarter than most computers and more. One of this year’s hot ones is the iPad2 (is it because Steve Jobs passed on and now everyone wants a piece of him? Nope.) It’s the holidays.
Unfortunately, for many Americans, this impulse can and is very dangerous because they simply cannot afford these items. Yet they continue to rack up their credit cards, put things on layaway, or spend irresponsibly without considering where the bills will come from the following season.
Here are some tips to help you avoid all that and stay in the black this holiday season. It’s not as hard as it sounds and can be achieved with some basic acts of self-control.
How To Prevent Going Into the Red In the First Place
The single easiest way to prevent heavy indebtedness at the end of year, is to manage your finances throughout the rest of the year. Chipping away at a larger expense is far easier if done in installments and before heading toward the next holidays – you need to make sure that the previous holidays (and anything else outstanding) is paid off or begun to be paid off first.
Pay yourself first each month. After listing all expenses that are unavoidable, including savings, examine if you are left with any room to breathe. Begin a holiday shopping fund and build it throughout the year, but do not take on any more debt and do not deviate from your plan.
If You Are In the Red, What to Do Next
Don’t overdo the gifts this year. Bake cookies, wrap them up nicely and write a beautiful hand-written letter telling the person receiving the gift what you appreciate about him or her. Donate your time to a charity in someone’s honor. Or give to the poor in their name. Make a coupon book for each month of the coming year – in which you offer your services and special treats such as “good for one massage” or “get out of cooking dinner today”.
Ways To Get Through the Holidays and Stay in the Red
The big “B” word usually does it for responsible citizens that don’t go underwater during the holiday season. Budgeting your holiday expenses is a key step in making sure that you don’t overspend. However, unless you set a specific budget and then stick to it, you may as well forget it.
Remember that the ultimate meaning of your gift(s) is not the material itself but rather the thoughtfulness. Grandma was right – it’s the thought that counts, not the number of dollar bills you shelled out at the register.
Using creativity to make gifts that involve your own personal touch is far more endearing than any store-bought item. A handmade item that your loved one will keep close to heart for years will likely cost less money but also shows that your time spent on the gift means you were generous of your own time in the process, something more and more rare these days.
Center the holidays on family, traditions and activities that bring the two together. Your loved ones should be able to remember the gift you gave them and if you bring out a homemade board game that has personalized touches involving the whole family – then they will surely remember that for years.
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Many Americans tell themselves they won’t overspend past a certain amount, but then when it comes down to the big Black Friday sale or the sales leading up to Christmas or Hanukkah, they break down. With just a bit of careful planning and a lot of self-control – you can and will get through the holidays without swimming in a sea of debt by the time the New Year rolls around.
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