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CUT AND REDUCE CHRISTMAS SHOPPING EXPENSES

1.0 CHRISTMAS IS NOT AN EMERGENCY!

Some people (not my smart readers, I am sure) suddenly realize on December 1 or maybe December 15 that Christmas is coming. They then charge a number of gifts that are not practical or inexpensive on their credit cards.

Many people treat Christmas as an extra or off-budget item, which means that it is an unplanned expense. Yet most people know from year to year who they will give presents to and how much they will spend.

We suggest you make a master list of all the people you gave to last year with a notation about what gifts you gave and what you received. Naturally this list will change over time but only gradually. And naturally there will be a few surprises but only a few.

1.0.1 WHY TALK ABOUT CHRISTMAS COSTS?

Christmas is very personal. We are not about to tell anyone how much money he or she should spend. It is up to you to decide what you feel is right. Many families spend $700-$1000 per year.

On the other hand after publishing SAVVY-DISCOUNTS.com for five years, we feel strongly that Christmas is one of the principle reasons families find themselves owing a ton of money. The debt creeps up year after year on various credit cards that never seem to get paid off. Charge $1000 a year for ten years and you've got significant debt. The problem is not so much how much you spend, but planning for that expense.

1.0.2 CHRISTMAS EXPENSES SHOULD BE THOUGHT ABOUT

The classic way to get into trouble with Christmas is to not think about how much is being spent. Christmas is very emotional. There is always a lot of pressure to match another's expensive gift or buy that imported champagne on the way to a party.

Try to be aware of social pressures and consider carefully what is expected of you.

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