Black Friday is right around the corner so it’s time to create a holiday budget. Many of us feel pressured during the holidays to spend money that we don’t have. Don’t let a lack of planning result in overwhelming credit card debt in the New year. Review last year’s spending and trimming your gift recipient list by reminding yourself that you can’t buy for everyone that you know and love, and you shouldn’t try. 

For the adults in your family, suggest a White Elephant gift exchange with a $20 limit. Then only buy for small children. For friends, propose a “pitch-in” party where everyone brings a dish, a gift, and their own beverage. Play Dirty Santa or Guess The Giver so everyone in attendance can enjoy themselves and leave with a gift. At the office, bake something to bring to the office as a group gift for your co-workers or make individual goodie bags. And remember, just because someone gives you a gift doesn’t mean you need to rush out and buy one in return. 

You also need to have a plan to handle the endless holiday party invites – which are a gateway to hostess gift buying. Start practicing a polite yet to-the-point decline to the invites you’d normally attend out of guilt and only go to the parties that you look forward to. No fake excuses necessary - just a simple, “Thank you so much for thinking of me but I just can’t make it”, will suffice. 

Finally, plan for travel, another major holiday expense. Peak season prices can make trips more costly and lead to credit card debt. Unless you have the cash to pay off what you charged during your vacation - flights, hotel, rental car, and food – you’ll be faced with a large balance which could result in a ding to your credit and higher interest rates. To save money, travel before or after the holiday instead of during. Happy Holidays, from the team at Alloy Wealth!