holiday budgeting
Tips for Keeping Personal Finances in Check During the Holidays
Guest post:
Developing a budget is the foundation for keeping your personal finances in check during the Christmas and New Year period. A budget provides a realistic way to see where your finances stand. Be prepared, though. Writing things down has a tendency to shed light on issues. You may be spending more money on items than you originally thought. So, take some time to figure out exactly what your income is, how much you need for your daily living expenses and what amount is available for recreational expenses. Recreational expenses mean the fun stuff like going to the movies, buying that extra gift or paying more for that family dining experience. Stay within your budget to keep your finances in check.
Pay cash as much as possible. Hopefully, by now you have weaned yourself from credit cards. Credit cards put you into a borrowing situation which can only harm you in the long run. As much as companies advertise special credit promotions, such as not paying until February, you are still entering into a legal obligation. February may seem like a long time away, but it will come sooner than you thought. And, you might not have the money then. So, paying cash for whatever you buy is your best bet. Paying cash also reduces your risks of credit card fraud.
If you absolutely must buy a high-end item that you cannot afford to pay cash for, check around for the best credit cards available. Some independent credit card companies do offer low-interest rate incentives to attract new customers. Just be certain you read the fine print. You do not want to enter into any contract that has a large payment after a certain amount of time or one that has a small-print clause stating the interest rate will go up for a number of reasons. Many reputable retail establishments have their own credit card to entice purchases. Some of these can be low or interest-free. Be safe and deal only with companies you feel comfortable with.
Hit the day after sales. Stores need to get rid of merchandise the day after Christmas. This can be a huge money-saver for customers. Some items can be marked down more than 50 percent. Check your local newspaper or go online to see what sales are available. It may be well worth your time, effort and pocketbook to buy that big-dollar item after Christmas instead of before. Be patient and you may reap the rewards. Start doing some comparison shopping. This time of the year, especially, retail establishments are vying for your business. All kinds of good deals abound. As much as that hold true, you can keep your personal finances in check during the Christmas and new year period by taking some time to comparison shop. You know what item you want to buy. Check to see which store offers the best price. Also check to see what the store’s return policy is in case the item does not work out for you or your gift recipient. And remember, driving across town to save a couple bucks on an item may not be worth it. You need to consider your commuting costs into the final cost of the item. Just like Santa likes making a list, you can benefit from making a list. Write down all the gifts you want to buy. Take that list with you on all shopping trips and stick with it. Once you buy a gift, cross it off your list. Crossing items off gives a feeling of accomplishment. Help your personal finances by using any number of these suggestions during the Christmas and New Year period.
Contributed by Daniel from Merlin Assurance, a Quebec insurance broker.