Here's a piece from Market Watch details why people don't listen to holiday financial tips. Most of the piece doesn't say a lot in my opinion, but close to the end, it offers the following good suggestions:
The standard holiday tips boil down to the following (culled and edited from six different organizations that have issued tip sheets in the last two weeks):
- Make a holiday budget.
- Supplement the budget with a shopping list (and then stick to the budget and live off the list).
- Boost your holiday spending account by cutting down on things like food or entertainment at the end of the year.
- Look for deals, comparison shop, and do it all early enough that you do not feel rushed to make purchases, because hasty decisions make for wasteful spending.
- Be creative, and think "homemade" and "different" (the latter apparently being the shorthand description these groups use when advising that instead of buying Grandpa some new pipe tobacco, you could give him coupons he can redeem for you washing and waxing his old Pontiac).
- Pay with cash whenever possible, and get rid of the holiday debt as quickly as you can, which reduces the spending hangover by getting you "back to normal" quickly.
- Start saving for next year as soon as the holidays are over this year.
Yes, it's basic, but often the best financial advice is basic -- something that everyone can apply with little effort.
The article ends by offering one last tip that's worth considering:
Finally, consider the savings tip that no one seems to come up with at this time of year: Give fewer gifts. If you've had a bad year, if you simply are at a point where a gift is more of an obligation than a loving gesture, call the intended recipient and make a deal to reduce the giving. Support a favorite charity, or agree to curb your debt situation together.
Not bad advice at all. If you go the charity route, please consider Samaritan's Purse. It's my recommended charity this holiday season.
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