The Holidays are right around the corner! It’s a time of family, friends, sharing, good food and good times! What it is NOT, is a time to lose track of your financial goals. During the holiday season however, many people get so caught up that they end up with what is known as the debt hangover. Either spending more than they intended and/or not able to meet some of their existing financial obligations during or after the holiday season. I think we are all probably a little guilty of going a little overboard with all of the sales and events of the holiday season.
To stay financially focused, here are a few tips to avoid the debt hangover:
Create a budget– Start with setting a budget that you can comfortably afford that won’t impact your current financial plan. Even with a few weeks left before the holidays, there is still time to save to help cover some of the expenses. Be as specific as possible when creating the budget. I think a lot of times people focus on a budget for gifts but forget about the other holiday activities such as dinners and family outings.
Plan ahead- Its not only important to establish a budget but to also create a plan for the events of the holiday season also. There will be many sales and events to participate in. Pick and choose the ones that will allow you to stay within your budget. Trust me, there is always plenty of advance notice for the sales that take place. For me, I enjoy just being out and about taking in all of the sights and scents of the season.
Focus on Family- For us it is a lot of family time, not just immediate family but extended as well during the Thanksgiving and Christmas season. We plan activities that all family members can participate in at minimal cost. Some of the activities we do include:
- Family Thanksgiving Day Parade trip– We select a captain, who then contacts all of the family members and establishes a time and place to meet. They are also responsible for getting us there and finding the “perfect” spot to take in all of the sights.
- Family games– We select a few games that ALL family members can participate in. One is Family Feud, we select the theme ahead of time. Some ideas include, family trivia or even personal finance. A committee then puts the questions together for the game.
- Potluck style Meals– In our family, everyone has their specialty that they cook so they are generally in charge of bringing that item. This minimizes one person having to buy and cook everything. Another idea is to come up with the menu ahead of time and have everyone donate a certain amount to contribute to the costs.
No matter what your family traditions are during the holidays, the goal is to stay focused on your financial goals. Don’t get caught up in the debt hangover, you will be paying for it for months or years to come if you do. Try a few of the tips above to stay on track. Let me know in the comments below what your family does during the holidays and what are some things you do that are financially friendly!
Enjoy the season!