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Christmas Is Upon Us: Spend Wisely
By Molly's Brother | November 26, 2007
During this point in the year, I can’t stop thinking about the thousands of dollars that are being charged on individual credit cards across the country. I talked about Black Friday yesterday, so I won’t dwell on the topic too much. For those of you who think I don’t understand Economics 101, I want to assure you that I do. On a national level–hell–on a global level, there is value to individuals exercising their access to consumer debt. On a personal level, though, I remember first-hand how any debt, be it limited or excessive, weighed on my psyche.
To those of you who read this blog with any regularity, it is to you whom I am writing. I want to let you know that you can get out of debt. During the holiday season it may seem especially hard to climb out of debt since you have opposing forces: you want to save money and eliminate debt, but you also want to buy gifts for your loved ones. You won’t get out of debt overnight, but you can’t keep digging yourself in deeper and deeper. It is important to take a stand.
Even if it is Christmas.
1. Purge the urge to splurge. This is not easy to do considering it’s “x” number of shopping days left until Christmas. If you realize that your budget is tight and you still have a few items left to buy on your Christmas list, the find other areas where you can eliminate expenses. If you are at the mall, do not grab a quick meal at the food court (that’s $6 you can spend towards a gift). If you want to meet a friend to hangout, host him/her at your house and have coffee there (that’s $4 you saved on coffee). If you do this a couple of times over the course of the few weeks remaining until Christmas, you just might discover that you have extra money to spend on gifts.
2. Make a list and stick to it. Often times, we over shop and over buy for friends and loved ones. Why do we do this? Because we don’t stick to our lists. When we are in the store, we find items that compliment the gift and we end up buying them, as well. Stores know this about us. Hell, it is their business to know this about us! If you create a list, you need to stick with it. Remember: It is the quality of the gift (i.e. the thought behind it) that counts more than the quantity given.
3. Do something drastic. Stop using the plastic! Although it is already too late for many of us this holiday season, try to go shopping with cash. Leave the credit cards at home. If you don’t have them on you or in your purse, it is impossible to use them. Admittedly, this is the first step to reducing and eliminating debt.
4. Figure out your debt. In addition to curbing your spending, at some point you are going to have to come face-to-face with how much consumer or credit card debt you are actually carrying. Only then can you understand how to eliminate. Furthermore, you need to develop a plan to debt reduction. Although different people offer different opinions, many financial professional suggest that you pay off the credit card with the higher interest rates first.
5. Resist peer pressure. If you turn into a Frugal Fanny at this time of the year, many will call you such horrible names. You are the Grinch. You are Scrooge incarnate. But take a step back and remember why you are doing this: You are making these choices for you–and your family’s–financial future. You can remind your husband, wife, or children of this fact. You will get pressure from your closest friends, too. It is important to keep in mind, though, that you have no idea what the state of their finances are. They may not be the best influence. Plus, they will not be paying for your expenses during retirement.
It is an incredibly difficult time of the year to work on your finances. If you are in debt, doubly so. There are important things to keep in mind though during the next six weeks. If you follow your plan and if you remember the Big Picture, it will help you keep from running up your credit cards even more.
Topics: Credit Cards |