How to survive “Holiday Spending”Sonia Sutherland-CruzEnrichment Financial Coaching08/17/08It’s that wonderful time of year again when we get together with family and friends to celebrate the birth of Jesus Christ, our Savior. With all the “hoopla”, parties, festivities, gift giving, over eating, over drinking, and over spending we sometimes forget the true meaning of this “Awesome Holiday”.The average Diva spends approximately $800.00 on Christmas gift’s every year. Not to mention the extra “have to have items” that she buys herself while she is supposed to be shopping for others. After all, “It’s a SALE”.However, it’s not too late to get a grip on your Christmas spending. You still have time to formulate a workable spending plan. By being pro-active and planning ahead you may avoid the post Christmas “Bills and Credit Card Blues”.First, take a good look at your finances. Are you already in debt? Do you have a substantial amount due on your credit cards already? Are you still paying just the minimum amount each month? Are you still paying for last year’s Christmas gifts? Have you met any of your financial goals this year?Only you can answer these important questions. Consider your personal situation for a moment and realize the actual financial consequences of over spending this Christmas season. Are you going to be digging yourself into a deeper “financial hole”, just to impress?Being innovative and resourceful this year by centering your mind to the real significance of Christmas will help you to spend your hard-earned money wisely. After all giving is an important part of the holiday season.I would like to share ten holiday spending tips to help you spend wisely and celebrate the most “wonderful time of the year.” - Make a list of family and friends and decide on a dollar amount for each of them and stick to it. This will avoid the emotional impulse buying that is especially high this time of the year.
- Consider making your gifts. For those of you that have been blessed with God given talent, this is the time to display it. Can you make jewelry, bake,
sew, cook, My friend has a wonderful talent for making “black rum cake”. I personally look forward to her gift every year. - For the child who has everything, why not have relatives and friends contribute to their college fund by giving savings bonds instead of toys and clothes. My families has done this for over 15 years and trust me, it had come in handy for my son’s college tuition and books this year.
- Gift certificates are very popular these days. There is a gift card for just about any store you could ever think of. This is especially great for that hard to buy for teen-ager. It also helps you to stay in your budget!
- On-line shopping has proven to be both time saving and less costly for some hard to find items. For those of you who have family and friends out of town, this will cut down on your shipping cost by having the company ship directly.
- “Cash is King”! ….Leave the credit card at home. You will thank me later. By paying in cash you will be more inclined to stick within your budget and avoid the inevitable post Christmas credit card blues.
- Keep track of your spending by utilizing a holiday spending worksheet. By writing down the amount that you spend on each person you will be able to stay on budget.
- Avoid the “Check Out Offers” at the register. I know it is tempting to save an immediate 10%-15% on your purchases, but adding just one more credit card to your list could actually damage your credit rating.
- If you can’t afford it –don’t buy it! Your child may want that $500 dirt bike he saw on TV, but it simply is not in your budget at this time. Forget the guilt trip! We tend to feel like failures when we can’t deliver everything for everyone during the holidays. Once again, ask yourself if this is the true meaning of Christmas?
- Start the New Year out right. Begin to pay off any outstanding credit card debt that you established and start a Christmas fund. Opening an account at any bank or credit union now will eliminate the need to find money for next year.
Happy Holidays!!!
What to do with your tax return money.
WOMEN AND MONEY
So you are getting back money from the government again. This time it's $1,000 more than last year and due to the governments new tax rebate you could end up with between $300-$1200 more, based on your individual tax circumstances. I know you have heard it before but I will say it once again. Getting back a windfall of money every year means you are lending your hard earned money to the government interest free, and you don't even get a thank you note for it. If the shoe were on the other foot and you owed the IRS money, you can be sure that they will be adding up the interest you owed them from day one. For some of you getting back a refund may be the only way to save money. If you make changes to your W2 form and begin to receive additional money in your weekly paycheck, and then proceed to increase your spending pattern, this will defeat the whole purpose. However, if you are disciplined about saving and invest that money in a money market account you'll be the one to earn the interest not the government.
Women tend to carry more consumer credit card debt than men. Using your credit card can be a great convenience if you pay off your balance at the end of each month. By not paying in full you will quickly find out that the $50 pair of shoes and the $25 afternoon lunch may quickly add up to $150 if you continue to pay only the minimum balance.
If you have any credit card debt now, one of the first things you should do with your tax check is to pay it down. If you have multiple balances on your cards, utilize the debt snowball theory developed by David Ramsey.This would be a great start to this wonderful program. Remember the interest that is being charged on those credit cards is more than any type of interest that you can get in a savings account right now. Getting rid of your debt is the first steps toward financial freedom! The next step is taking control and changing your spending behavior. http://www.groupcurriculum.org/questions/debt_snowball_sample.pdf
Ladies,
I hope that everyone was able to view the recent Oprah series about women who were left financially crippled because of the lack of education in financial management....Don't let this happen to you. Get help TODAY!!!! It's not worth the devastating results.
Read the story below.
http://www2.oprah.com/money/relationships/slide/200802/rel_20080213_284_101.jhtml
Before you can move forward on the road to financial freedom you need to take a few steps backward. By taking a step backward I mean that you have to examine your money history.
Many of us grew up in households where the subject of money was taboo. Your parents never talked about it in a sit down family conference and you certainly never knew how much they made or how much they were worth. It was all a big secret. You may have heard negative statements made about money such as “it’s the root of all evil” or that money doesn’t grow on trees”. Some of us had no clue what type of financial situation our family was in whether it was good or bad. Sometimes money may have been used for manipulation purposes such as, if you don’t do as I say you will be taken out of my will or if you don’t’ do all your chores you won’t get a allowance this week. Women in particular were lead to believe that money management was for men only and it wasn’t feminine to discuss money matters, so consequently feel inadequate dealing with money issues. Many women today still prefer to rely on their husbands to make all the money and investment decisions.
Take a moment and think about your money history because it could be affecting your money management abilities today. Take a stroll down memory lane and see if your past beliefs and values are getting in the way of your financial future. Was your mother a shopper who ran up the bills and hid the merchandise from your father? Did your parents argue about money? Was your family always struggling to make ends meet?