Following are some tips to avoid paying for the holidays well into the next year:
*Use only one credit card. Better yet, pay for everything with cash. That way if you don't have it, you don't spend it.
*Wrap that credit card in an index card. Every time you use it, write down the amount you spent on the index card, and add to what you've already charged. Use that "running total" to help you keep track of your debt.
*Or set a limit before you first use the plastic for holiday spending. Write your spending total on the index card. Then every time you use the card, subtract the amount spent so your "running total" reflects how much credit you have left to spend.
*Resist the urge to join the holiday spending frenzy. Sometimes we even buy ourselves gifts! Stay out of stores a much as possible.
*Ask why you are buying each gift. How much guilt is reflected in your holiday spending? What can you change throughout the year to reduce your guilt-spending at next year's holiday?
*Maybe like many others, you tend to overdo in an effort to make others happy. People cook too much food for gatherings. They shop for a special gift for each person on their list and yet, your cousin may not remember what he received from you last year. Sound familiar? Maybe it's time to change your holiday gifting habits.
*Think about ways you could save money during the year so you'll have holiday cash to spend for the next holiday season. One Nebraskan carried lunch to work each day and deposited what he saved into a special savings account. That holiday season he paid cash for his gifts, and he lost weight too! Will he go back to using the plastic and paying off Santa in May? "Not on your life!"
To make the holiday season truly happy, focus on family, friends and those in need rather than on spending or excessive work. Slow down and enjoy each other and the season.
When January rolls around, start planning for next year's holiday season. Set aside a few dollars each week to use for gifts or other holiday expenses. Take advantage of clearance sales on lights and other decorations now to avoid paying full price for the same items next year.
Produced as part of Dollars & Sense: Celebrating the Holidays, University of Nebraska Extension
