Tis the Season for Emotional Spending

I went to the Women’s Expo the other week and, yes, I made some irrational purchases. So I have been thinking about emotional spending and how difficult it is to avoid unnecessary purchases during the holidays.  I found this article online that lists four key points to avoid holiday debt.

1. Set spending limits—Carrie suggested that I set aside a small amount of money each week for gift giving. Does anyone remember the “Christmas Club” accounts? I know many banks have gotten rid of these nifty accounts but a lot of credit unions still have them or a form of them. So it seems that NOW is the time to think about next year’s Christmas budget. It is kind of like the envelope method Kari, Darek, Cree, Chay and Coen are using; once the account is empty…

2. Make a list—Follow Santa’s example. Make a list of all the people you need or want to buy gifts for and don’t forget to include money for postage and Christmas cards. Those small items add up. I often leave out the postage. You know you get a really good deal on a gift for $4.00 but you spend $8.95 to ship it. You should also include holiday entertainment on this list as well.

3. Set a limit—Determine how much you want to spend on each person on your gift list and add a little cushion for unexpected items or price fluctuations.

4. Decide where to shop—two words: comparison shop.

Hopefully this is a little helpful. I also found a video on YouTube that I found quite helpful. I never really thought about holiday depression and the after holiday debt before. That majority of Americans are charging their holidays and typically do not pay them off until June. All the more reason to save a little bit each month to finance your holiday.

You Can Stop Being Held Hostage by Holiday Credit Card Debt
http://www.youtube.com/watch?v=ezWTicNnT8c

Comments

[Anglinia]

They really do. I mostly recycle gift bags so I have had the same rapping paper for 3 years now. I typically buy one of those bulk rolls when it's on sale after Christmas. I usually wait until it's 75-90% off. 50% just isn't enough. :)

[Rachel]

Great idea to include shipping in the budget -- I've noticed that the wrapping paper, tape, ribbons, bows and decorations add up!!