The holiday shopping season is here and with it, its inevitable companion, debt! Who doesn’t overspend during the holidays? Does it make it any better if that overspending is to the benefit of another? We tell ourselves that it’s okay if our spending during the holidays is a little “out of control” if the end-result is a happy child, friend or family member AND we didn’t spend it on ourselves. But is this really healthy?
According to the National Retail Federation, the average consumer spent a record $347.44 per person during the recent 2007 Black Friday holiday shopping event. This is a marked increase of 4.8% over last year. Add to that fact that the average family of four here in the US spends between $4000-6000 during the Christmas season and you can see how debt can accumulate quite rapidly during the old holiday season.
So what can you do? How do you give your loved ones that “Christmas to remember” without getting yourself into knee-deep debt in the New Year? Consider these 6 tips to debt proof your life this holiday season and start your holiday season out on a solvent foot.
1. Cut your spending: Seems simple enough. If you spent $2000 last year, try to spend $1000 this year. Not that easy to do though is it. Mom and dad must have that new top of the line juicer and who is going to buy little Johnny that PS3 if not you? Don’t consider eliminating the purchases all together, but if you can’t find a great comparison shopping deal on the items you’re looking for, then maybe something similar and cheaper may be the way to go. Buy mom and dad a mid-range juicer and get little Johnny a Nintendo Wii - it’s cheaper and the better system anyway.
2. Get organized: So how many presents do you really need? If you’re anything like me, I tend to always be surprised with unexpected gifts that need buying on a regular basis. Uncle Larry and his 4 kids are going to be visiting this year, no kidding? Learn from my mistakes. Make that list and check it twice - cut some people if you have to. Plan a budget and stick to it and find out now who is coming and what needs to be bought if anything. As for Larry and his 4 kids, consider a fruit cake or a popcorn variety mix can. That will work well within your budget.
3. Give an experience: Thing outside the box this holiday season. Give your loved ones the gift of time. Be creative and watch your holiday expenses plummet. Give mom and dad a weekend of your undivided attention (or if they are like my parents, offer to disappear for a week altogether). Take little Johnny to the zoo or plan a family holiday outing to the bowling alley. Get creative and slice your expenses in half and reduce your gift giving stress at the same time. Read the rest of this entry »