Holidays are upon us and while this is a season of giving, parties, indulging, and spending time with friends and families, it is also a season of opening the wallet or pocket book to be able to pay for all these fun events! We love holidays as much as the next guy, but let’s face it… All that fun, gifting, baking, visiting, time off from work, etc., can definitely strain the budget. Does this mean we don’t indulge in these festivities? We don’t buy gifts and presents for our loved ones? Of course not! We just have to be sure that we plan for it so that it doesn’t put our budget out of whack!
We have to be honest with ourselves first and foremost… The holidays are NOT surprise expenses! They happen every year! A car repair, emergency medical bills, or other unexpected expenses can definitely set us back if we are not properly prepared with an emergency fund, however holidays (usually) happen at the same time every year. That means that we have the full year to plan for them, right? Who says that when you see a gift that you know your Uncle Jimmy would LOVE in the month of June that you can’t buy it then and there and put it aside? He may appreciate the gift even more than something that you come up with under last minute gift buying pressure, and your holiday expenses will have been spread out throughout the year rather than all taking place at one time!
The key to managing expense during this (and any) time of year is proper planning. You need to budget for the additional expenses that you incur during this time of year so they don’t creep up and surprise you. Another option to take advantage of is good old fashion “lay away”. If you are younger than me, you may not know what this is, but you should! K Mart and other retailers are bringing back this age old form of financing where you choose an item that you’d like to purchase, and instruct the store hold it on your behalf with a deposit. When you get enough money to purchase the remainder and own it outright, you pay and are given the item! WITHOUT any interest rates tacked on as well!
Always budget for planned and unplanned expenses. If you can teach yourself this important financial restraint, you will save yourself considerable stress (and money in the form of interest rates incurred) at the times when you need to access that cash.
Best of success & happy holidays!