Ask and answer the following questions to keep your holiday spending in check:
1. How much did you spend last year? Take a look at the tally for gifts, meals and decorations and challenge yourself to set a lower goal this year. Even a 5 to 10 percent savings will make a difference in your bottom line.
2. Does everyone on your list need a purchased gift? Review who you are buying for and consider some creative alternatives. Could you buy a group gift like a movie outing or museum membership for your sister and her family? Could you bake holiday treats for your neighbors? Could you initiate a "name draw" or gift exchange in your office? Thinking creatively can not only save money, but also create some new memories for everyone involved.
3. What gifts can you buy now? By spacing our your spending and purchasing several gifts a few months in advance, you can better control the overall impact. Watch for sales and buy items you find on clearance. Just be sure to keep records of what items you purchased (and where you stored them!) so you don't have to re-buy in December.
4. Can you give gift cards to the people on your list? When you give a gift card to a favorite coffee shop or retail store, you know exactly how much you are spending, helping ensure that you stick to your budget by not overspending. Many establishments that offer gift cards also offer creative ways to present them around the holiday season, making them fun to give and receive.
5. What's on your holiday meal plan? Stock up on items for baking and watch for early sales on holiday favorites like ham or turkey. Then store them in the pantry or freezer until you're ready to use them.
6. What expenses could you suspend or eliminate between now and the holidays? Skipping just one latte a week between now and Christmas puts an extra $50 in your holiday budget.
With just a little forethought, you can create a holiday spending plan that will keep the stress - and the Scrooge - out of the season.
