Holiday Sweaters

The holidays are now behind us, all gifts were exchanged and opened and the decorations put aside for next year.

Like a ton of bricks, it hits us! We are starting to get our credit card and bank statements and when we opened, we all feel "it can not be right!" but after careful consideration we can find it. After the initial shock of how much we actually spent during the holiday season, we begin to rationalize our expenses "we do it once a year," after all, the kids had a great time, and rationalization can go on and on.

We will now repay our debt for months and perhaps even the entire year. May this year be the last year of the debt falls on you.

Before you let time pass, begin to do three things:

1. Calculate how much you actually spent for the holidays this year.

2. Calculate how much you really need to spend the next year and begin the budget for that. You can do this by using our holiday spending and the budget worksheet located www.budgetkeepersystem.com.

3. Identify and begin to implement the way you will save money for holiday shopping next year.

Our holiday spending worksheet is broken down into three main areas as follows:

Gifts: For immediate family, friends, relatives, office staff, etc. capture your spending last season in the calculation of your receipts and credit cards and bank statements.

Food / Entertaining: These categories are the categories forgotten. Try to calculate how much money you spent on holiday entertaining, this includes things like food, alcohol, carbonated beverages, baking items and that new sweater.

Decorations: Do not forget the cost of decorating your house / apartment for the holidays. The lights, trees and ornaments all add up!

Now that you have calculated all your expenses, I think you will agree that the actual amount you spent was much more than you expected. As they say "do not cry over spilled milk." Let's just make sure we are better prepared and attention to our expenses for next year.

The basic philosophy of the system BUDGETkeeper is that you should sit down with your significant other (if any) to review and discuss your holiday and the actual cost. It is now time to ask some questions and start budgeting for next year.

1. Gifts on: Is gift for aunts, uncles and cousins really necessary? This gift giving does add a lot of money. I'm sure they are all facing the same situation as you. Maybe you should all discuss and agree to exchange a gift from the family or, better yet, no gifts to all exchanges.

2. Gifts immediate family: three pairs of pants and ten toys for each child it really necessary? Think about that and how much you'll spend next year on each member of your immediate family.

3. Friends: Maybe some sort of exchange developed, such as homemade cookies would be a good idea, instead of buying a present next year.

4. Decorations: Are you surprised at the amount spent on decorations? Maybe next year, you can simply use the decorations you have without buying new ones.

5. Food: Each holiday season we are going overboard on food. Stop to think how much food was thrown at the end of the holiday season. Maybe next year you can reduce the amount of food purchased. Make a single batch of cookies instead of a double lot.

6. Entertainment / Holiday Cards: How many Christmas cards you unnecessary email? Is it necessary to send a card to each person living on your block? Do you really need to buy a new sweater for your Christmas party? Next year mail holiday cards only to relatives or friends you have not seen or talked to Lon.