The Importance Of Holiday Budgeting

Don't you just look in wonder at people who make through the holidays with their personal finances still intact? In this day and age, doing that is quite an accomplishment. Aside from being a time of the year for family and friends to get together and celebrate, it's also the time of year when those little pieces of plastic in your wallet tend to get worn out. The end result is fun and excitement in December followed by the pain of watching credit card bills come in the door in January.

The Holidays on a Budget

If you are wondering how those lucky few avoid using their plastic during the holidays, the answer is simple. They adhere to a strict holiday budget where cash is king and credits cards never see the light of day. The truth is you too could get through the holidays with minimal financial damage and here's the secret. You have to actually prepare a budget and be prepared to to live by your own prescription. It may sound pretty easy, but you might have to overcome years of habitual holiday spending in order to meet your goal.

Preparing a Holiday Budget

The goal is to clear the holidays debt free while getting the maximum amount of enjoyment you can out of being with family and friends. The process of determining how much money you have to spend is very simple. Pay all your normal bills, pay a little extra against your consumer debt, put a little in savings and the remaining portion is your available cash, no credit cards! If you were fiscally responsible, you would use this process over a 3-6 month period prior to the holidays and build up your holiday war chest. With your available cash identified, you can now being the process of allocating it among gifts, decorations, gift wrapping, holiday meals or parties and travel. You just need to be as detailed as possible to avoid any last minute