Featured Client Beneficial Article Tips Budgeting Holiday altstrategies.com    
  Budgeting Your Holiday Spending
         
  • Determine what you can afford to spend. Looking over your finances is essential to budgeting your holiday spending properly. Sure, we all want to splurge on fancy gifts for our families and friends, but spending beyond your means will get you into hot water in the end. Set a limit, and stick to it.

  • Track your spending. Deciding on a budget is the first step, but next you must make sure to keep track of what you purchase. Write it in your checkbook, keep clear notes in your daily planner, or frequently check your online banking statement from your computer or smart phone. Whatever way you choose to track your finances, doing so ensures that you won’t go over your limit.

  • Tweak your budget to avoid overspending. Leaving a little extra room is another way to prevent overspending. If you really have $200 to spend, why not set your budget at $180? That way, when you come across a last minute gift idea, you will have the funds to back it, and avert dipping into money you need for life’s essentials (like rent and groceries).

  • Avoid buying on credit. Save money by using money you actually have. When you pay by credit card and don’t immediately pay the entire balance, you run the risk of racking up major interest. It’s not worth it, unless you’re in the habit of paying your entire bill every month, and have the funds available to do so. This year’s gifts could end up haunting you with interest fees for years. Avoid the ghosts of Christmases past and pay with money you already have in your bank account.

  • Examine your intentions. The holidays are all about giving—it truly is the thought behind your gifts that counts. Going overboard so you can psychologically give yourself the “Best Gift Giver” award may not be the smartest idea. Remember, “I love you” and “thank you” are expressed best through thoughtful presents, not lavish spending.

  • Exert your imagination. Invest your time, rather than your money, in planning a fun activity or making homemade gifts. Plan an excursion or activity for you and your loved ones to enjoy together—the impact of the experience will last longer than anything material. Pull out that box of art supplies in the closet, and make everyone cards. Bake up your best holiday cookies, package them in festive tissue paper or inexpensive gift boxes from the craft store, and voilà: heartfelt presents that everyone will appreciate.

Happy shopping! And remember that during the holidays, as well as throughout the year, it is important to take control of your finances and budget your spending properly.