Over lunch with my husband today, I subtly mentioned to him that the credit card bill next month might be a bit higher than usual. Instead of being disgruntled, the way he can be when I don't forewarn him of such things, he said "thank you for letting me know". I was glad to have gotten that piece of news off of my chest, but I am still feeling a bit anxious about the spending that I have done, and inevitably do this time of year. I came home to a text from my sister saying "I'm scared of what my credit card bill will look like for this month!". 'Tis the season.
Living in Northampton, MA, there are so many wonderful sales at open studios of local artists and artisans this time of year, as well as home-based sales, and the generally great stuff you can find at our array of local shops. Add to that the overall charm of our New England city, all dressed up in her holiday finest - it's hard to resist the urge to shop til you drop, as the saying goes.
I came across this article a week ago. one my go-to blog site, Apartment Therapy, with some sound advice about how to stay on top of spending over the holidays. Read on!
How to Avoid a Major Financial Hangover After The Holidays
by Dabne Frake
It’s not too late to ensure you make it through the holidays without going into serious debt. Even if you waded through the 5am crowds on Black Friday, the gift-buying season is in full swing, with plenty of time to say to yourself, “Oh, I just know Dabney would love that [insert item here]. I should just get it for her.” While I appreciate the thought, I’d much rather see you be free and clear of financial worry and set yourself up for budget-happy 2016.
1. Set a Budget
If you already budget, you’re probably in good shape. You know how much you have to spend this month and have planned for it. For the rest of you, take a minute to look at your bank accounts and figure out how much you have that can go towards gifts. And then stick to it.
2. Pay With Cash
Resist the urge to whip out your credit card at checkout register. Using cash makes you more aware of what you’re spending. And if you don’t have the cash on hand, then you can’t buy whatever it is you have your eye on.
3. Use Up Those Gift Cards
If you tend to accumulate gift cards, this is a good way to use them. They might come from actual presents you’ve been given, but we often get free gift cards as rewards for other purchases. Shop throughout the year using these bonus windfalls, and you'll have less to buy in December.
4. Don’t Buy For Absolutely Everyone.... or Yourself
A lot of overspending comes from getting everyone you know a little something, along with splurging on yourself whenever you come across a good deal. Pare down your holiday gift list by focusing on those people you care about the most, and leave off all those random people with whom you don't have a real connection. (Note: By this I don't mean you shouldn't buy gifts through programs like Toys for Tots....)
5. Start Saving for Next Christmas…Now
Set up an automatic savings account (Like Capital One 360) and have $10 slide out of your account every week and into a safe place where you won’t think about it our touch it for another twelve months. By next December, you’ll have roughly $500 to put towards presents.
This might be controversial, but sometimes it just makes sense. If you are gifted things you have no use for, pass them on to others who you might be genuinely happy to get them. Doing so reduces clutter in your own household, and saves you from having to buy more gifts. If you're unsure, check out our guide to regifting, and see what others had to say in the comments.
7. Make Your Gifts
Homemade gifts are way to make the holidays meaningful, and ease pressure on the wallet. Start with our Homemade Holidays gift ideas, and get to making!
(Image credits: Ashley Poskin)