It is so easy to get into financial trouble during the holidays. With all of the gift giving and the mania of getting great deals, going overboard is almost a given part of the Christmas season. How many times do folks run up credit card bills that will take an entire year to pay back? But it doesn’t have to be that way. You can get the budget under control and avoid unexpected financial surprises by making a list and checking it twice.
The easiest way to avoid overspending on gift gifting is to start with a list. Make a list of everyone for whom you will be purchasing gifts this year. Take a good look at the list and see if there is anyone that could be eliminated. Don’t be a scrooge, but look at the list objectively. Do you really need to send a gift to an old friend from school that you haven’t seen in five years? Maybe a card will do. Perhaps your extended family would be willing to draw names this year instead of giving individually?
Once you have your list of recipients, assign a dollar value for each gift. Then add it all up. You may be surprised by the amount you planned to spend. And often, you wind up spending more money that you planned. If you are comfortable with the total dollar amount, great. Double check your list and you are done. If the amount seems too high, reduce everyone’s individual amount by at least 15 percent. It is an easy way to reduce your budget without moving everyone around.
One last point, which is important. Stick to your budget. if you unexpectedly find the perfect present for someone that is less than what you budgeted, consider yourself lucky and bank the difference. Don’t be tempted to spend the extra somewhere else.
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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