Have you ever looked at your wish list and thought you heard a muffled scream coming from your wallet?
Inevitably, someone you love will wish for a $1,000 t-shirt or a chocolate fountain. And because you love them, you might go with it. But when December 26th rolls around and the ripped up wrapping paper settles, your wallet might feel a little battered and bruised!
The holidays don’t have to derail your financial future. Here are some straightforward tips that will help keep you on track during your annual shopping spree.
Establish a holiday budget
Entering a department store without a cap on how much you’re willing to spend is like walking into a bakery when you’re on a diet. Could you resist picking up a dozen donuts “for the family” or a couple of fresh baked loaves of bread “to make sandwiches later”?
A gift list and realistic budget can cut through the feverish fog of free-for-all shopping and impulse buys. They help you focus as you navigate aisle upon aisle of half-off sales and shiny things you don’t really need but feel like you do.
A budget can also help curtail extravagant gift requests. Telling someone that you want to buy them a gift that’s under $50 can hedge against extravagant designer clothes or the latest technological gadget.
Part of the power of cash is that it works in tandem with your budget. Walking into a store with no cards and just $50 limits your spending and forces you to buy only what you intended.
Cash also reduces your reliance on credit. Unleashing your cards to cover Christmas shopping is an easy way to enter the New Year with extra debt. Plus, the interest payments can add up and make your holiday shopping even more expensive in the long run. Stick with cash and save yourself the headache!
Play Secret Santa
Secret Santa has long been a staple of huge families that don’t have the time or money to get gifts for two parents, nine siblings, the in-laws, and all the cousins, nieces, and nephews. Everyone still gets a gift or two, but it helps the whole family out on their holiday budgets. Here’s how it works!
Have everyone write their names on scraps of paper. Include some highly specific gift ideas with the names. Then, put all the paper into a hat and shake it up. Have the secret Santas choose names from the hat one at a time. You get to buy gifts for ONLY the person you select!
What’s great about Secret Santa is that the mystery of the game offsets the expectation of getting tons of presents. It’s a fun way to save some extra cash!
So let chance decide who’s been naughty and nice, make a budget and list and check them twice, remember that some cash will suffice, and do some holiday shopping that won’t make you think twice (about derailing your financial dreams)!