Black Friday Kicks Off Holiday Budgeting Season

So you made it through Black Friday unscathed, with your budget still intact. While you should give yourself a big pat on the back, it’s still a bit too early to breathe that sigh of relief. Contrary to popular belief, Black Friday, or the day after Thanksgiving, is actually not the biggest shopping day of the year. Black Friday really represents a kick-off to the holiday shopping season, as the busiest shopping day of the year changes every year, but always falls somewhere between December 18 and 24. This means that you’re going to have to stay focused on your budget and committed to making it through without overspending for the next few weeks. Fortunately, we’ve put together a list of five tips for making it through this holiday season without having to add “pay off my debt” to your list of New Year’s resolutions.

1. Follow Santa’s lead and make a list (and check it twice). First make your list of everyone you want to buy presents for this season. Then, write down the amount you’d like to spend on each person, not the actual present you want to buy them.  This is because what you actually buy doesn’t matter, as long as it does not cost more than the amount of money you have budgeted for this person. Once you’ve determined how much you’re spending on each person, add up the total. If the grand total is more than you want to spend, start cutting by either removing names from your list or reducing the amount of money per person, until you reach a total dollar amount that works for you. It’s normal to feel the urge to splurge on everyone in your life this time of year, but realize you don’t have to. People understand you are on a budget, and appreciate simple and meaningful gestures over expensive and frivolous gifts.
    
2. Avoid the “SALE” trap. “SALE” can be a dirty word, especially around the holidays. A recent survey conducted by American Research Group said that shoppers who wait for a sale would spend $40 more than those who would buy gifts for full price.  The “Buy 2, Get 1 Half Off” and “Holiday Blowout” deals only trick you into buying more than you otherwise would. So stick to your list and don't give into the temptation to purchase items you don’t really need.
    
3. Leave your credit cards at home. Studies have shown that people who use credit cards to pay for holiday gifts, spend on average 30% more than those who pay for their gifts with cash. To put that in perspective, if instead of taking $200 cash out of your account to spend on holiday gifts, you opted to use a credit card instead, you could wind up paying closer to $260. So price out all of the gifts on your list, finalize your budget, and take out just enough money to cover these items.
    
4. Tie it up with a neat bow. Make sure that the amount you have budgeted to spend on gifts this season includes gift wrap, ribbon and bows, cards or gift tags, and shipping. These items can cost $50 or more, so if you don’t include them in your budget ahead of time, you could wind up seriously overspending. If you are looking to save money on giftwrap, visit a dollar store for your supplies, or use household products you already own to wrap your presents. Grocery store paper bags hand-decorated by your children work well, as does newspaper or previously-used gift wrap.
    
5. Finally, don’t use a holiday shopping trip as an excuse to shop for yourself. The “one for you, one for me” philosophy does not work well during the holiday season. If you end up giving into temptation, and purchasing items that are “on sale” for yourself, you’ll wind up spending double what you had originally budgeted. You have all year to take care of yourself; this is the time to treat others. Plus, you’ll probably receive presents from many of the people on your own list, so maybe one of the items you’re checking out will make its way into your gift pile this season.

The bottom line is that the holiday season should be time spent with your family and friends, not spent spending money. The memories of holidays with your loved ones last a lot longer than the initial excitement of a new TV or a new sweater. Plus, you’ll be able to start your New Year off on the right financial foot, which is the best present of all! 

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