Smart Shopping + Smart Spending = Happy Holidays!

By Jacquette Timmons

Some of us start saving for the holiday shopping season a full-year in advance. While others of us are looking at the calendar with utter astonishment wondering, “OMG, how many more paychecks will I get before the holidays arrive?” Ironically, both approaches require the same thing.

Whether the economy is doing well or in a slump, budgets tend to get a bad rap. But the holidays seem to bring about an even deeper visceral response to the word and practice of budgeting – as if having and following one either means you don’t have enough money and/or that you are being cheap and frugal.

Quite the contrary!

Having a holiday shopping budget equals smart spending, smart shopping and happiness all around. Here’s why: A budget helps you manage the expectations of others, as well as your own!

Now, here’s how: Back into your budget by determining for how many people you want to buy gifts; how many gifts per person; what type of gift; and the price point per gift. Do an initial version that is unedited. If you have the resources to do your first draft stress-free (read: no new debt)…awesome! If not, revise your budget until you reach the dollar amount that you can realistically afford using cash and/or a credit card you can pay in full. Note: it is perfectly OK if you have to adjust your budget several times before reaching the sweet spot.

Remember, the goal is to give meaningful gifts to your loved ones, the cost of which won’t leave you feeling remorseful on January 2 -- after the holiday euphoria has worn off! Also, keep in mind that the joy of giving and stress cannot co-exist. So, plan your holiday shopping (where, when, what debit/credit card you plan to use) to minimize your stress with the shopping process – especially if your holiday plans also include traveling!

Holiday shopping shouldn’t break your bank, and it won’t if you are proactive. And it doesn’t matter if you started planning twelve months ago or are just getting started today. A budget consists of equal parts smart shopping and smart spending…the perfect mixture for a happy holiday!