Christmas is in the air the time of year where gift giving and spending time with family is promoted. However, often times families zone in on the gifts aspect of Christmas. The kids now want a PS4 or Xbox One while your wife or girlfriend requires that coveted Gucci bag. While your loving husband or boyfriend is drooling over some new high tech gadget that just hit the market. In addition, there's grandma and grandpa, aunts and uncle and your myriad of friends in line hoping for a present. Fact of the matter is we end up spending a lot during this time of year and more often than not, a month later we're faced with a big fat bill. All piled up on our credit card and boom we're off to a bad start for the New Year.
Don't get caught people, I may be coming off as a bit of a Grinch, don't get me wrong treat yourself and the ones you love but don't spend what you don't have. And a lot of times that's what end up happening to a lot of people. This is just a friendly reminder for those who may have been smitten a bit too deeply by the Christmas spirit. Financial blogger and founder of the financial website BobbyFinance.com, Meinna Gwet, recently outlined six tips in an article on her website to help frantic gift givers avoid financial stress in 2013. For some, this may be a bit too late, but for other a lot of the tips still apply. Stash them away for 2014 as well, I sure will.
Plan your budget well in advance: Whatever your resolutions, you know you are going to spend during the holidays. Determine what you want for yourself and put aside money every month during the year. Ask your friends and family what gifts they would like by September, so you will know how much more, you will need to save by December. Don't forget to save extra for social activities.
Don't buy it if you don't need it: For stores, Christmas is the best opportunity to make the maximum revenues by preying on customers' impulses. So they will launch a lot of sales, make items non-refundable and market them in a catchy way. Think about it: Do you really need that beautifully wrapped basket of soap and body lotion for $45? Buying each item separately off-season would probably cost much less.
Don't buy it if you can't afford it: Avoid using your credit card as a replacement for money. Among the 4 things you must know about economy, the most important is that credit is not wealth. If you can't pay it back fully within a month or two, then put money aside and buy the item later. I promise it will not vanish! If the item is out of stock when you go back to the store, they can order it for you or you can always buy it online.
Beware of holiday sales: Boxing Day is not the only moment to buy something on sale. When we shop under pressure around a hundred other people, we tend to make poor decisions. Before we know it, we end up buying 10 items at $5 each that we don't really need, instead of buying 4 items at $10 each that we really value.
Shop online: Look for online deals when you know exactly what you want. On the internet, you have time to compare prices and brands from the comfort of your sofa. Items like electronics, furniture, books, accessories and even clothing are generally priced at a lower rate on the internet, even by the same companies that sell them in their stores. Also remember to check the refund and exchange policy.
Be original: Crafting gifts yourself allows you to spend less money and to make a personal gesture that can touch your friend or relative more than just buying the latest gadget.
