The holidays are here and it's time for vacation from work, time with friends and family and a chance to wind down the year on a rejuvenating note. Unfortunately, for those trying to mind their finances, the holidays are also rife with avenues to spend your hard-earned cash. While being an Ebenezer Scrooge is not a good idea, here are some sensible tips to help you avoid breaking the bank this Christmas season and to help you manage your holiday spending.
Shrink your gift-giving circle
If you have many friends, the holidays can be a real burn on your wallet. There are concerns about who to buy gifts for and how much to spend. After all, you wouldn't want to risk hurting someone’s feelings or having them feel left out. The first step is to identify who absolutely needs to get a tangible gift. The list should include your immediate family, very close friends and significant other. For your group of football buddies, suggest a gift exchange in which each person buys one gift with a price limitation so that in the end, each person ends up with one gift. The bartering activity and the draw of pecking order for choosing the gifts always make for a great time.
If you are in a relationship, the holidays are a time when additional gift-giving generosity is almost expected and tends to be doubly appreciated. This can really cut into your finances. However, before claiming poverty, go all in for your significant other -- and then plan your budget based on what you have left. A good quality gift will go a long way for your relationship, and although your other friends and family may be getting less expensive gifts, they won’t know the difference anyway.
eBay it
eBay has spent millions of dollars to brand itself as the place that you can find “it” -- “it” being that ever-elusive perfect gift for someone. More often than not, giving someone that perfect-fitting gift scores you more points than a standard, contemporary gift. For example, if your friend is a big fan of a discontinued cartoon he used to watch when he was a kid, you are more likely to find a boxed set of episodes on eBay than at a video retail store. Certainly, a gift meeting that mold will be far more memorable than a gift certificate. You can even dramatize your eBay activity by illustrating the brutal, competitive bidding war taking place in the last three minutes of the auction -- and your brilliant technique to emerge victorious. That's always great for a holiday story. Furthermore, eBay is the place to find deals and bargain prices. Items listed are typically things people are looking to simply get rid of or make a few extra dollars on, and you can often find items at prices far lower than suggested retail.
Attend holiday parties
The jubilant times of the holidays mean that everyone is throwing their annual holiday parties and get-togethers. If you have a good circle of acquaintances and friends, it's likely there will be no shortage of these social gatherings. For the vast majority of occasions, there is no cover charge. Without sounding crass, this means a night of eating and drinking on someone else’s dime. Make a point of attending your parents’ dull neighborhood gatherings rather than going out on the town for a night. It may seem like torture, but your parents will appreciate your presence and it'll get you out of a $100 bar tab. If you can fit in a couple of these per week, that can mean big savings, and people will find your holiday spirit endearing. Of course, it's not good to be totally self-involved. Be a great guest and bring a bottle of wine or an arrangement of flowers with you when you show up. Your gratitude will be well received and remembered -- and may also let you double this gesture as a holiday gift to the friends whose parties you attended.
Plan well in advance for traveling
The holidays are the most popular travel season of the year, and every travel provider from car rental companies to airlines knows this. Like anyone in business, they take advantage of this time to maximize profits. It's not as if flights are ever less expensive at this time of year; they tend to be pretty pricey and are often blacked-out by your credit card rewards points. As you desperately try to keep your promise to dear old Mom to make the cross-country trek for Christmas, you fork out big bucks for the airline ticket without even blinking an eye. After all, you don't want to disappoint anyone. The best suggestion is to make travel arrangements early -- perhaps weeks or even months in advance. By doing this, rates are typically better and at the very least, you have more options at your disposal. This lets you compare, rather than leaving you stuck holding the bag on whatever crumbs -- which tend to be the priciest -- are left. If you end up forgetting or putting off making travel plans when you are racing to do so, take a breath and evaluate the situation. From a financial standpoint, it may make more sense to visit after the holidays and have a "makeup" family get-together. Specifically, taking this option may mean buying a $200 round trip ticket versus a $600 ticket -- that’s a big savings and a great way to manage your holiday spending.
Cut up the credit cards
Nearly all of us have experienced buyers remorse come January, when the credit card bill outlining our holiday spending arrives. During the holiday season, starting with Black Friday, the retailers are aggressively luring you to bring out the plastic and buy just one more thing. You justify by saying what a great deal it is, but in the end, the cash is out of your stash. Taking an overly drastic measure like cutting up your credit card is probably not the best idea, but you can have the same impact by leaving the plastic at home when you go out shopping. If you rely on your debit card or a wad of cash you brought along, there is a fixed limit on your spending. There is not a chance you can whip out the VISA to further stuff your shopping cart. By eliminating the impulse spending, which is what the retailers are out to do, you should be able to save a big chunk off your holiday expenditures.
holiday cheer and change
Coming out of the holidays and launching into the New Year in one financial piece is simply a matter of discipline. Certainly, this is the time of year when, everywhere you look, someone is taking a jab to get into your wallet. Fortunately, the holidays provide ample opportunity to avoid such situations and to let the holiday spirit shine without breaking the bank.
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