Seven Tips to Help You Afford the Holidays

Candace Bahr and Ginita Wall, CPA, CFP?

The holiday season is fast approaching. Just as it’s easy to overeat during the holidays, it’s easy to overspend, especially if you buy on credit. Research shows that people spend about 15 percent more on purchases paid with a credit card. (So easy when you can just swipe and forget about a purchase.)

To help you through the holiday rush and keep your spirits bright, here are seven tips to help you afford the holiday, and save taxes to boot – now there’s a real gift!

1. Make a gift-giving budget and stick to it

Here is a fact to help you keep things in perspective. The annual budget of the United Nations is $5.15 billion, which is only a third of last year’s Toys’R’Us revenue. Isn’t it time to get sane about holiday spending? Before you go shopping, make a budget. Write down the total amount you want to spend on gifts and then break it down by person. This can help you decide whether to get your mom that expensive pearl necklace or those less expensive pearl earrings (or maybe just write her a heartfelt card).

2. Decorate on the cheap

A trip through Costco during the holidays will show clearly that it’s easy to spend hundreds of dollars on neat holiday decorations. Instead of splurging on holiday knickknacks, use your ingenuity. Bundle pine boughs to capture the scent of the holidays, or buy wide velvet ribbon and tie bows on everything from doorknobs and banisters to candlesticks. Pinterest is an excellent resource for gorgeous, homemade crafts.

Click here to see the full article which includes the 7 tips at Wife.org.