Cheap Trick Thursday: plan ahead to celebrate frugal, debt-free holidays
It may be tempting this year to try to escape the harsh realities of the economy --- and our crumbling financial security --- by throwing ourselves heartily into winter holiday celebrations, whether they be Christmas or any of the other special days between now and Jan. 6 (Solstice, anyone?).
But with all the uncertainty surrounding our fiscal outlook, this is also probably the worst possible time to accumulate debt, and the best possible time to celebrate whatever it is we really treasure, such as companionship of friends and loved ones.
Take a moment to assess what you can afford, and start saving now, says Bill Hardekopf of lowcards.com. "If you are still paying for purchases from last Christmas, then you can't afford a lot of shopping this Christmas," he said.
Then make your list, and check it twice. Hahaha. No, seriously ...
... sit down and prepare a holiday budget, recommends Erin Huffstetler at About.com. Adjust the categories for your own needs and desires at this time of year, not just gifts. Don't forget holiday family portraits, end-of-year tipping, decorations for inside and outside your home and food for celebration meals. Add postage and shipping costs, if applicable.
Then go through and see where you can make compromises --- can you buy holiday outfits for your children second-hand? Can you make gifts (cookies, etc.) for teachers and others you'd like to thank, for less money than a store-bought option? How about organizing a potluck get-together rather than bearing the burden of hosting a holiday dinner or party all by yourself?
Planning this way has two benefits: you can hopefully save by not wasting money on last-minute purchases --- gifts for folks you had forgotten about, overnight shipping for gifts you should have sent earlier --- as well as decide which expenses are worth it. If you prefer to enjoy a tree you've selected and cut yourself, then spend the money on that, and cut back somewhere else.
We'll probably be writing way too much about handling the holidays --- avoiding over-consumption and the pressure to have a "perfect" celebration as defined by commercial interests --- over the next few weeks, so if you have any ideas on how to avoid the pressure, please share.
(photo: stock xchng)
