When it comes to the holidays, most people expect to see their wallets emptied. The holiday shopping season is crazy. People are maxing out their credit cards, only to pay for years to come.
And it isn't just the gifts that can hurt the budget. Most people forget the added groceries for holiday celebrations, the travel expenses and other associated costs.
How can you get through it?
The best way is to be prepared well in advance. Either save a little back each month for your holiday spending, or shop for gifts all year long. This takes time and planning, so be ready to start thinking about next holiday season in January.
If you are like most people, you haven't planned at all. If you find that you are now wondering where you will get the money to do it all, you need to sit down and make some lists. Just like Santa, you have to be prepared.
First, you might want to make sure that you have enough money for your holiday traveling. Many Americans must travel to be with their families on the holidays. Take this money out of your budget first. Remember, seeing your family is more important than the gifts you bring.
Now make a gift list. Write down the name of each person you need to purchase a gift for. Instead of deciding what to get each person, decide how much to spend on each person. List the dollar amount next to each name. Total it all up. If the amount is more than you can afford, go back through your list and adjust it until it all adds up. Remember to add in gift wrap and shipping if necessary.
Take your list and go to the bank. Withdraw the amount of money you need in cash. If you don't have enough money to spend cash, you need to revisit the amount you can afford. You can only afford what you can purchase with cash.
When you go to the store, take only the cash with you. Leave your checkbook, debit and credit cards at home. You won't be tempted to use them if you don't have them with you. Spending cash is a great incentive not to overspend. When it is gone, you are finished shopping.
