CARL WATTS & ASSOCIATES

December 19, 2010

www.carlwatts.com
office@carlwatts.com
Washington DC
 tel/fax 202 350-9002
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Wouldn’t it be nice to have a list like Santa’s, together with a budget to fit? :-) We all love to see the joy on our dear ones’ faces when they unwrap their gifts; who wants to think about budgeting and overspending?

At least not until January, or even much later, but that is so, like, next year!!!


But we’re afraid this is exactly what we’d like you to think about: budgeting your holiday spending, sticking to your budget and making a great start to the new year.

As is usually the case, there is an abundance of articles on the web and in the media telling you how, what and where to buy everything you need for the holiday season, from gifts to ornaments and food, and how to cut back on spending. Every article out there mentions budgeting. There is simply no way you can avoid it, unless, of course, your resources are unlimited. (Although we are told the wealthy have their limits, too.)

It’s easy to make a budget, as long as you know for certain how much you can afford to spend. The hard part is sticking to your budget!


Here are a few helpful suggestions:

  • Set the amount you can afford to spend for holidays, in a realistic manner and divide it into gifts, ornaments, shipping and handling, entertaining and other expenses;
  • Make a list of all the people you want to buy gifts for. Go over your list several times and see if you can reduce it;
  • Let people know you may have to cut back on gifts. You’d be surprised, but many of them will feel relieved;
  • Try making gifts for a family or couple, instead of individual gifts for each member;
  • You might decide to send cards to more distant relatives and friends; at the same time you could give up buying cards for the ones you included on the gift list;
  • Set the amount you can afford to spend for each person on your gift list. You may even want to make envelopes with their names on them and the allocated amount inside.
  • When shopping for gifts, try to refrain from buying bargains for yourself as well;
  • If you overspend on gifts, try to reduce your spending for ornaments and parties;
  • If you have enough ornaments but would like a change, try swapping with someone else who might enjoy a change as well;
  • Try not to give in to the guilt and competitive side of holiday gifting;
  • No matter what the skeptics may say, it is still the intention and the good thought that counts.

We all know how easy it is to overspend, especially using a credit card, but as unpleasant as it may sound, try to remember you’ll have to pay for everything next January and even beyond.

Most of all, enjoy the holidays together with your dear ones, make the best of the time you can be with them, spend wisely and keep track of all your spending. If it’s not something you’re already used to doing, plan for next year’s holidays way ahead, save some money each month and write down the gifts you have already bought during the year … memory is a tricky thing!

Wishing you peaceful and joyful holidays, we’d also like to mention that our weekly newsletter will be back January 10, 2011.

Best wishes and season’s greetings,

Carl Watts and the CWA team
Holiday Spending