The holiday season is certainly upon us. Just because the music and decorations puts us in a happy mood, doesn’t mean we can blow our budgets this time of year. Let’s look at ways you can avoid the post-holiday blues by not spending above your means.
Develop a holiday spending budget. Follow Santa Claus’ advice and make a list and check it twice. Write down the names of people you will be getting gifts for and how much you want to spend on each. Add them up and don’t forget to add in your expenses for decorations, holiday meals, cards and travel. By writing everything down, you will get a sense of what needs to be left off the list this year.
Get creative with your gift-giving. It truly is the thought that counts so consider gifts with a personal touch. Use your talents to create a gift such as baked goods, scrapbooks, candy, etc…
Look for bargains and avoid last-minute shopping. If you’re going shopping on December 23 and 24, forget about finding the best prices. You have to develop a plan, find the best deals and look for bargains and coupons online or in the circulars of your local newspapers.
Pay cash or limit credit card spending to one card. Stick to your spending budget for the holidays and leave your checkbook and other credit cards at home. This will help you avoid temptations and impulse buys. If you have to use a credit card, find the one with the lowest interest rate and don’t spend more than you can afford to pay off in 90 days or less. If you stick to the 90-day rule, the pain won’t linger throughout the next year.
Guard your information. Remember, the holidays are the busiest time of year for identity theft. Avoid exposing your debit card and credit cards when shopping. Always get a receipt and if you lose a credit card, report it stolen right away.
Once you’ve had time to recover from the holidays, take your receipts and total them up. This will give you an idea of the real cost of the holidays next year and allow you to plan accordingly. Many financial institutions, including Rabobank, have Holiday Savings accounts that allow you to set aside a certain dollar amount each month to prepare for your holiday spending. Best of luck and Happy Holidays.
Michael Drapeau is Rabobank, N.A. Financial Services Officer in Murrieta. Rabobank, N.A. has nearly 120 retail branches in California, including Murrieta. Rabobank, N.A. is an Equal Housing Lender. www.rabobankamerica.com