Avoiding the Christmas Financial Hangover

Christmas season is here again. This is the most exhilarating time of the year yet it can be expensive. A recent Gallup poll suggests that the average American shopper will spend an average of $800 for the Christmas season which is an increase of $80 from the previous year. This is also the season where shoppers feel the holiday financial hangover. The hangover is when you overspent for the holidays and you are coming to the realization that you have limited spending money and the credit card bills are due in January. Don’t forego in buying gifts or spending more money than you allocated this season but have a plan.

---

Here are some suggested steps: Budget - The first step is to define how much you will spend. Hence a budget is required. When you have a budget, you’ll avoid the consequences of a large credit card bill at the end of the month. Your Christmas budget should not exceed the household budget. If you don’t have a budget, it’s a good time to start one. Only 1 in 3 Americans operate their household with a budget. You can go to any website and pull down a budget form. To hold to the spending plan, you may have to revise your budget several times. Lists – This is where you write the names of people who are receiving gifts. Your list may need revamping multiple times if you want to stay within your budget. The first draft is always emotional. Come back again a few days later to revise and you’ll find the emotions are gone. A quick and easy way to determine what to spend per person is to take the budgeted amount and divide by the number of people on the list or write down what you want to spend per person instead of taking an average as it should total to the budgeted amount. Gifts - The hottest gifts this season are gift cards, electronics, fitness watches, and chocolate. Check out www.gifts.com. Men take note on the section - Gifts for Women. Also take a look at Costco and Sam’s Club for price comparison on toys and clothing. Ultimately your budget will determine what gifts to purchase and where to shop. Payment method - This is the fun part. Make it your purpose to pay for all gifts in cash. This will help you to become conservative in what you buy. Spending cash will enable you to think of different ways to purchase gifts. If you have a smartphone, one of the top apps is Retailmenot. It allows you to check for sales and coupons at any major retailer and restaurants. Discounts ranges from $5 to 50% off of purchases. If you need to utilize your credit card, write the amount in your budget and place the cash aside to pay off the balance later. You are not a scrooge. You are becoming financially responsible. Shopping with a purpose renews the meaning of Christmas. The wise men traveled for years just to see and worshipped the King of Kings. They worshipped Him with their gifts of frankincense, gold, and myrrh. Similarly, your motivation must be pure and the love of Christ should be displayed in your gift giving. If you have children, teach them that giving is better than receiving. Help them find ways to provide gifts to those who are not as fortunate. Use this opportunity to bring the true meaning of Christmas. Remove the commercialization and let your gifts be an expression of God’s love. Merry Christmas!