November and December are months of special dinners with family and friends, parties, and exchanging of gifts. These good times lead to higher-than-usual family expenses.
Unplanned or overenthusiastic holiday spending can create financial troubles, especially in January when the bills arrive. Follow these steps to avoid the holiday urge to splurge:
* Get organized. Estimate holiday expenses, including travel, special meals, charitable donations, phone calls, gifts, and greeting cards. List the people you usually buy gifts for, and this year's gift ideas.
* Consider having the family draw names for gifts instead of buying a gift for every family member. If money is really tight, discuss a "gift hiatus" with your family. Instead, consider time spent together as a "gift." Or give coupons for services you can provide, such as washing the family car or cooking a special meal.
* Budget how much you can afford to spend from current income and savings and how much you can afford to put on credit cards and still pay it off quickly.
* Set realistic limits. Remember, it is the thought that counts, not the price tag.
* Shop early, take advantage of sales, and avoid impulse buys.
* Keep track of the costs and know what bills will be arriving.
* Control your spending, lower financial stress, and enjoy the season.
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