Celebrating Holidays with a Balanced Budget

Holiday season brings joy for us but with a tight budget it is difficult to plan for holiday shopping. This article offers you tips to celebrate your holidays with a balanced budeget.

In the Western Union Money Mindset Survey taken in August, 43 percent of consumers were already planning cuts on all holiday gift purchases. The survey was conducted by Javelin Research.

"In today's struggling economy, budget-conscious consumers have been thinking ahead and planning changes long before this holiday season kicks in -- and with good reasons," says Royal Cole, executive vice president and general manager of Western Union Payment Services. "As watchdogs of their own personal finance affairs, consumers are trying hard to stick to their budgets so they can keep paying necessary expenses such as rent, mortgage, utility, credit card and auto bills."

However, less green in your wallet doesn't have to equal pre-holiday blues. Western Union Payment Services offers some simple ways to curb spending and still preserve holiday happiness.

* Decide how much money you can spend on gifts and make sure to stick to this budget. If you need a point of reference, look at what you spent last year, and determine if you are able to match that, or if you can cut back on the list, either by buying fewer gifts, or spending less. Make a list of who you will purchase gifts for and tally how much you can spend on each to ensure you don't go over your budget.

* Be a savvy shopper and watch for sales, special promotional discounts or buy-one, get-one free offers. Also, spread your shopping out, so you can balance the costs between paychecks. If you find yourself short on funds and need to get the bills paid, consider last-minute, same-day payments, which can keep your payments current and avoid late fees.

* Discuss setting a budget limit on gift-giving with family and friends. One way to cut back is to draw names out of a hat, so you're only purchasing one nice gift for one person, rather than many gifts for everyone.

* Go online to www.overstock.com or www.half.com to find good deals. Remember, it's the idea behind the gift, not how much you spend on it.

* Research flexible payment plan options to maximize your cash flow for the holidays; ask your bank or creditor if they offer these customized bill payment plans. Or ask if you can organize a holiday account, with little deposits made into the account all year long.

* Give the gift of cash this holiday season -- a modest cash gift can help a friend or relative pay for basic necessities and living expenses. In this economy, it's a universal gift that everyone will appreciate, and you get a bang for your buck -- no extra costs for taxes, shipping or handling. Visit www.westernunion.com for more information.

* Make sure you're monitoring all household budget items so you might have a little extra money to keep you going during the holidays. Read personal finance articles for the latest ways to tighten your budget on sites such as www.smartmoney.com, www.ivillage.com or www.kiplinger.com.

Courtesy of ARAcontent