Create Your Holiday Spending Budget

Disclosure: In any review for a product or service, products or compensation may have been provided to me to help facilitate my review. All opinions are my own and honest. I am disclosing this in accordance with FTC Guidelines. Please see “Disclose” and "Terms of Use" tabs for more information.

The holidays are here again, and with them the attendant orgy of spending that puts thousands of
people in the poorhouse every year. But before you go on a massive shopping spree to secure pricy
gifts for everyone from friends and relatives to business associates and social acquaintances, perhaps
you should take a moment to sit down and think about just what it is you’re really doing. Do you really
need to spend your hard-earned money on all of these people? Half of them don’t even expect to get
something (and they won’t reciprocate). And the rest wouldn’t want you going into debt for gifts they
don’t really need (or even want, in some cases). So perhaps it’s time to rethink your holiday strategy by
formulating a budget – and sticking to it! Here are some tips to help you out.

1. Be honest about what you can afford. Hey, we’re in a recession. You’re not the only one
looking to spend less this year, so don’t worry too much about what other people are going
to think if their gifts are somewhat less lavish than in years past. Whether your budget is a
hundred dollars or a thousand you can find ways to make it work. But you have to start by
setting yourself a strict limit and finding a plan to make it work so that you don’t “accidentally”
overspend.

2. Use cash. Unless you want to enter the New Year with a mountain of credit card debt (and
spend the next six months paying double for every gift, thanks to interest), think about locking
up your credit cards this holiday season and buying only with the extra cash you have on hand.
You may have to be frugal and get creative, but it will definitely help to save you from the
financial burden you’ve faced in holidays past.

3. DIY. Gifts that you make are not only a lot less expensive than store-bought; they can
also provide for unique items that are far more personal than mass-manufactured goods.
So consider your talents (and your time-frame), then set about knitting scarves, creating
homemade soaps, or getting crafty with the kids to make ornaments with family photos. Even if
you think that you have no creativity or talent, there are tons of simple DIY projects that literally
anyone can undertake. For example, everyone loves baked goods. If you’re stumped, look
online for hundreds of DIY gift ideas. You’re sure to find one that works for you.

4. Consider donating. ‘Tis the season of giving, so why not consider making a gift to those less
fortunate this year? Making donations in the names of family and friends not only helps you
stick to your budget; it also makes you and those closest to you feel good, reduces your carbon
footprint, and helps people that could really use a hand.

5. Give the gift of cards. No, not playing cards (although holiday cards aren’t a bad idea)! In order
to stick to your budget and make your life a lot easier, why not offer gift cards to the ones you
love this year? It’s good for the environment and it allows recipients to get exactly what they
want. You can still make the gift personal by choosing shops that you know certain people
love. But MasterCard Prepaid cards are a great option since they can be used anywhere and
PayPower prepaid Visas are just as good (they’re everywhere you want to be!).