The holiday season comes each year. It never skips a beat, yet it appears that shoppers still have a hard time planning for it.
Brooke Stephens, financial planner and author, notes that people are spending money as fast as they can, which means that they are spending money they do not have, she says. This may be the prime reason individuals are financially ill prepared this holiday season.
“We are still clearing out the debt from last year,” says Stephens, “and spending money on stuff we do not need.”
The key to controlling spending this holiday is to find another way to celebrate, Stephens adds. People should try to be more creative in the gift giving process. Instead of buying a Christmas card, make one. Instead of paying for gifts, trade skills with one another as a gift, she says. You could make vouchers or coupons for babysitting, cooking, cleaning or any other good deed that comes to mind, Stephens says.
Since the holidays are not all about gifts, monitoring your spending on fashion and food is also important. Try not to overdo it in the kitchen by cooking every dish you have ever heard of, Stephens says.
If people feel like they absolutely have to buy gifts, a budget is the right way to go, she says. However, there should be a strict limit. Whatever amount you choose, stick to it.
“This is the year to focus on practical gifts like gloves and scarves,” she adds. “For children, there should be one special toy, that’s it.”
It is necessary to re-examine the true meaning of Christmas, which is not maxing out credit cards and going into debt, Stephens adds. It is about family and togetherness.
Heather Kenny, a personal shopper in Chicago, shares a similar sentiment as Stephens when it comes to having a budget for the amount you are willing to spend on each person. However, she notes that everyone’s budget is different, so shoppers must think about that beforehand, Kenny says.
Kenny’s advice to shoppers is to have a plan. If you do not plan, you will feel overwhelmed and get frustrated and ultimately come home with nothing, she says.
Kenny Suggests that You:
1. Make a list. You need to have some idea of what you are looking for in order to prevent you from searching the entire store aimlessly.
2. Know where you want to go. You should plan ahead and determine which stores you need to go to. If you do this, you will make shopping less stressful and more productive.
3. Be mindful of time. Three hours should be the limit. If you spend more time shopping, you stand the chance of getting tired and that is not a good thing. Normally, you should not plan to do all of your holiday shopping in one day. However, if you do, then break it up into small chunks and take breaks in between. You could grab lunch or coffee.
Stephens has a challenge for everyone this holiday season.
“Try to go the entire holiday season without using credit cards,” she says.
Comment on this story in the Gloss Blog by clicking HERE
*Photography by Billy Montgomery.
