black friday treat - financial guidebook for the holidays!

A Financial Guidebook for the

Holidays"There's something about a holiday that isn't all about

how much money you spend."

Hilarie Burton

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Introduction

• The holidays can be a tricky time, financially speaking.

• Between the gifts, trips, parties, and holiday outings, the time between Thanksgiving and New Year’s can be a real financial hurdle.

• The key to having a good time without breaking the bank is planning. Creating a plan and actually following it can make all the difference.

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Creating a Budget

• Creating a budget is the first line of defense for getting any financial situation under control. With a good budget, you stand a great chance of financially navigating the holiday season successfully.

• If you’ve never made a holiday budget, odds are you’ll be surprised at how much it helps.

• The sooner you make it, the sooner you’ll be able to formulate your financial plan.

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Tips for Creating a Successful Budget

• There are free spreadsheets and software tools available.

• Examples include Christmas Budget and My Christmas Budget.

Use budgeting tools

• Gifts, charity, parties.• Food, travel.

List possible areas of spending C

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http://christmas.organizedhome.com/printable/christmas-planner/christmas-budget

http://www.mychristmasbudget.com/?ictid=oblog.mcb


• Can your savings assist? • Anticipated bonus or

additional earnings?• Are there expenses you

can cut back on?

Decide what you can afford

• Do they agree with your numbers?

• Try to reach an agreement on the expected expenditures.

Discuss budget with your partner C

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• Plans and schedules change quickly.

Make adjustments as you go along

• As you spend and earn, keep track of where you stand.

• Do you think you’re going to hit all your numbers?

Keep track

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“I don't need a holiday or a feast to feel grateful for my children, the sun, the

moon, the roof over my head, music, and laughter, but I like to take this time to take

the path of thanks less traveled.”

- Paula Poundstone

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Slash Your Budget

• Once you have a budget, take a close look and see how you can reduce your anticipated spending.

• With most budgets, you’ll find there’s room for improvement. Take the time to investigate ways to minimize your spending.

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Tips for Slashing Your Holiday Budget

Suggest a gift exchange

• Draw names at a social get-together.

• You’ll dramatically lower the amount of money you’ll need to spend.

Rely on your creativity

• Give services as gifts.

• Save money by making some of your gifts.

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Be proactive

• Sometimes the best policy is to be forward.

• Alteration in expectations can make things much easier.

Limit your travel

• Traveling all over the country can get expensive.

• Try to see all of your extended family in a single location, hopefully close to home. C

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Eliminate the extras

• Holiday shopping involves more expense than just the items you purchase.

• Eliminate the extras like fancy coffee, lunch, snacks, dinner, movies, and massages.

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“I love Thanksgiving because it's a holiday that is centered around food and family, two things that are of utmost importance

to me.”

- Marcus Samuelsson

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Shopping Tips

• If you’re going to minimize the financial impact of the holiday season, you have to shop intelligently. For many families, gifts are the primary expense associated with the holidays.

• A sound shopping strategy can make a big difference.

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Shopping Strategies to Consider

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“Christmas is not a time nor a season, but a state of mind. To cherish peace and goodwill, to be plenteous in mercy, is to

have the real spirit of Christmas.”

- Calvin Coolidge

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Saving Money

• One way to improve your holiday financial situation is to simply save more money.

• Aggressive saving can solve many financial challenges. The issue is that most people start too late. Get started today.

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Accumulating a Holiday Nest Egg

Save a little each week.

• If you spend $1,000 on the holidays, that’s only $20/week.

• Get started saving right away.

Save your annual raise.

• Most of us get the common 2-3% raise each year.

• Have it put into another account and leave it alone until the holidays roll around.

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Accumulating a Holiday Nest Egg

Cut back on your other expenses.

• Consider all the usual options to save a little extra money.

• Adjust the thermostat, eat at home, and avoid unnecessary purchases.

Sell your unwanted items.

• Sell some items that never get used.

• Yard sales, pawnshops, classified ads, and auction sites can turn unwanted items into cash.

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“It's true. Christmas can feel like a lot of work, particularly for mothers. But when you look back on all the Christmases in

your life, you'll find you've created family traditions and lasting memories.

Those memories, good and bad, are really what help to keep a family

together over the long haul.”

-Caroline Kennedy

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Making Money

• If you won’t be able to save enough from your regular income, it will be necessary to increase your income.

• The part-time holiday job is a common phenomenon. But driving to the mall and servicing holiday shoppers isn’t the only way to boost your income. There are many other options.

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Tips for Making Additional MoneyG

et

a s

eco

nd

job Look around and

find something that fits your schedule and pays well.Apply to businesses similar to your current employer. This can pay a lot better than the typical part-time jobs.

Freela

nce Check sites like

oDesk, Elance, and Freelancer.If you have skills that match up with a company’s needs, you can make good money in a hurry.

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Tips for Making Additional MoneyW

ork

more

at

curr

en

t jo

b A lot of people take time off during the holidays.You might be able to pick up another shift or additional hours. P

rovid

e a

serv

ice You could walk

dogs, shovel snow, run errands, or do shopping for others. Wrap presents for people.Check your community for options. C

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Tips for Making Additional MoneyTe

st a

pp

s, s

oft

ware

an

d w

eb

site

s There are companies that will pay you to review other companies’ apps and websites.Earning $10-$15 per test is the norm to look for bugs and other interface issues.

Be a

tu

tor Between

Thanksgiving and Christmas, many high school and college students are desperate to get their grades up.It’s not unusual to earn at least $20/hour from tutoring.

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Tips for Making Additional MoneyO

ffer

to d

o h

olid

ay

bab

ysi

ttin

g No one likes to shop during the busy season with smaller children.Offer a service that will allow parents to shop without the little ones in tow. C

lean

gu

tters

du

rin

g

late

fall If you have a

ladder, you have all you need.Many people will welcome the help to clean out leaves.$20-$50 is reasonable, and it will only take a few minutes.

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“Let our New Year's resolution be this: We will be there for one another as fellow members of

humanity, in the finest sense of the word.”

- Goran Persson

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Make the Holidays More Meaningful

• One way to cut expenses is creating a more meaningful holiday experience.

• The good feelings associated with the holidays can be a substitute for additional gifts and expensive outings. The true spirit of the holidays can be priceless and remembered forever.

• But it’s unlikely to happen without effort.

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How to Make the Holidays More Meaningful

Volunteer

The whole family could visit a nursing home or volunteer at a soup kitchen. There are sure to be plenty of volunteer opportunities near your home.

Create your own rituals Some families like to open a single gift on

Christmas Eve. Others like to gather around the piano and sing carols. Do something memorable.

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Turn off the TV

Go ice-skating or play a game of cards. Do something that everyone will remember fondly

instead of watching TV at home.

Buy thoughtful giftsPeople know when you took the time to find the perfect gift. It’s so much more meaningful

than the gift card from Wal-Mart.

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Use cards and letters

Take the time to write something meaningful in cards. Write holiday letters as a great

alternative.

Free up your scheduleStart paring down your schedule while there’s still time. Make time for meaningful activities.

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“I'm bad on Valentine's Day, but even worse on Christmas. I go shopping at nine o'clock on December 24th every year. Nobody else is

there. I'm in Toys'R'Us all by myself. I get there five minutes before closing.”

- Jamie Foxx

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The Post-Holiday Financial Cleanup

• Hopefully, you’ll make it through the holidays without any financial hiccups. If you did end up going a little overboard, now is the time to rectify the situation.

• Financial challenges only seem to worsen without prompt attention.

• These tips will help you put your finances back on the right track:

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How to Put Your Finances Back on Track

• How well did you stick to your budget?

• Accumulated any debt?• Did you earn or save as

much money as you expected?

Figure out where you are

• Overspent on gifts?• Bought random items?• Extra spending while

shopping?• Any issues you can prevent

next holiday season?

Where were you off in your

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• It could mean cutting back for a few weeks or months.

• Differentiate between needs and wants. Review every purchase and make smart spending decisions.

Avoid additional debt

• It’s common to make minimum payments on credit card debt. You could make minimum payments for 20+ years and still have part of the debt left.

Pay more than the minimum

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• Keep that second income going until holiday debt is paid in full.

• If you don’t already have one, think about finding a second income.

Continue second job

• If you received gifts you don’t like or know you’ll never use, returning them can be the best option.

Return unwanted gifts

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• Many credit card companies don’t charge interest on balance transfers.

• Transferring high-interest rate balances can be useful, but avoid missing a payment.

Transfer credit card balances

• Avoid using retirement money or getting payday loans.

• Put in the work necessary to pay off the holiday debt instead.

Leave your other

accounts alone C

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“I find shopping too stressful. I get hot, flustered and irritated and feel sick after I've bought something.”

- Alison Goldfrapp

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In a Nutshell

• Start building your savings early. With enough money in the bank, most of the financial challenges associated with the holidays simply fade away.

• Create a budget. A budget provides a view into your starting position and is the first step toward having a viable plan. The numbers provided by the budget determine everything else.

• Additional tips: Cut your holiday expenses, boost your income, and shop intelligently.

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Conclusion

• Remember to create memories throughout the holidays. Memories are more easily created than they are purchased.

• If you do find yourself in a less than desirable financial state after the holidays, start solving those challenges immediately. Maintain your extra income until your debt is paid.

• Use this guide to have the best possible holiday season. Focus on creating wonderful memories, but keep your eye on the bottom line!

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Stay Connected

Planning is the key to having a great time without breaking the bank. Creating a plan and sticking to it can make all the difference.

The sooner you get started, the easier it will be to save money and boost your income.

Download this fun and festive treat and give your holidays a boost Action Pack Financial Worksheet C

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http://www.lorenecollierpurcy.com/slides/holiday

black friday treat - financial guidebook for the holidays!

Economy & Finance