Oh, it's the holidays! The holidays are fun because of turkey and dressing, pumpkin pie, office parties, jingle bells, and lots and lots of eggnog. But despite all the fun and reindeer games, you should be careful not to end up as poor as Tiny Tim! People in the United States can spend up to $1,000 a year on gifts for family, friends, and business contacts. That's a lot of money, and if you don't plan ahead, it can hit you pretty hard in January. There are some tips and tricks you can use to have a happy holiday season without going into debt.
Do some careful plotting and planning for family and business costs before the holidays come. If you spend a few hours getting ready, you might spend less money on gifts. You don't have to be a Scrooge; you just have to be smart.
- Decide how much you want to spend, and don't go over that amount. Pretend you have money to spend. How much money do you have to spend this month? If you can't pay for it right now, you might not be able to pay for it ever.
- Make a list of all the people for whom you want to buy gifts and an estimate of how much you want to spend on each one. Include the smaller gifts for your mailman or teachers. Include the cost of Christmas cards and stamps in your budget, since cards count as gifts. Then, add it all up and compare it to what you had planned to spend. Change what needs to be changed. This year, your brother-in-law might only get socks.
- Take your list of things to buy with you. Use every chance you get to shop. Start early and try to get what you need before the crowds, before the prices go up on hard-to-find items that are in high demand, and before you can't find what you want. This lets you compare different prices. It also takes away some of the stress and makes it less likely that you'll spend too much just to get your shopping done.
- Be strong-willed. If you stick to your estimates, you won't spend more than you planned. If you start early enough to account for shipping time, eBay is a great way to shop. Find the right thing, bid the price you can afford, and leave it. Don't get into a bidding war if someone outbids you. Instead, bid on something else in your price range.
- Make a budget for things that aren't gifts and will be bought after Christmas. Don't forget to include things like cards, stamps, candles, a tree, decorations, and a lot of food that you buy during the holidays. Plan ahead to save money for next year by buying things on sale after Christmas. All of these things cost money, so plan for them in your holiday budget.
- Try new things. Find out if some people would be happy to get cookies you made at home. Don't forget that the holidays aren't about gifts, but about being kind to each other. Goodwill comes in many shapes and sizes, and it doesn't always need to be wrapped up. If you know how to sew, knit, paint, or write poems, use those skills. Make a photo book or offer to help them plant a garden. Use coupons to help your customers save money.
- Make more money during the season. There are many ways to make a little extra money during the holidays. During the holidays, many stores hire people to work part-time. Since it is party season, there is a lot of need for babysitters. Be imaginative. You could be the Official Gift Wrapper in your area and charge friends and neighbours a small fee to wrap their gifts.
- Cut your list down. This may sound harsh, but pay close attention to the person for whom you are buying a gift. If you need to save money, it's okay to not give gifts to everyone you know. Send cards only to distant family members, neighbours you don't know well, and business owners you haven't done business with this year.
- Go for it if a store offers free gift wrapping. You won't have to buy wrapping paper, tape, bows, and cards, and you won't have to spend time and money putting everything together yourself.
It's important to remember that every time you apply for a new credit card, your credit score will go down. So, if you're saving up for a mortgage or a big loan, you shouldn't try to get more credit.
At the beginning of January, getting ready for the new year will be your main concern, and you won't want money problems to make things worse. Even before you throw away the tree, the Ghost of Christmas Past starts to show up. Be smart with your money ahead of time to make sure you have a happy New Year.
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