Money Management
FOR
IMMEDIATE RELEASE: November 5, 2007
AVOID
OVERSPENDING DURING THE HOLIDAYS
Buying gifts for loved ones and traveling to see family can
be expensive. As the holidays draw near, there are many
simple spending habits that can help you conserve cash and
cut down on overspending, according to the North Carolina
Association of CPAs. That way, you won’t have to use credit
cards for your holiday purchases and rack up expensive
interest charges.
MAKE A
PLAN
To ensure you can afford your holiday wish list, begin
planning now. Start by making a list of the gifts you’d like
to buy; the traveling you’re likely to do and other expected
expenses. For each one, come up with a realistic estimate of
its cost.
Now,
consider how much spare cash you’re likely to have for these
purchases. If you don’t have a written budget, list your
regular expenses, such as rent or mortgage, utilities,
groceries and commuting costs. Total up your take-home pay
as well as any other money you expect to receive or savings
you might have set aside for holiday expenditures. Deduct
your regular expenses from the total to find out how much
you have left to spend on the holidays.
LOOK FOR
SAVINGS OPPORTUNITIES
If the
amount you have to spend won’t cover your wish list, start
seeking places to trim costs. Options include:
-
Junk
the java. If you’re spending several dollars a day on
pricey lattes, you’ll be amazed at how much you save by
bringing your coffee to work in a thermos. -
Make a
grocery shopping list and stick to it. If you plan and shop
for a week’s worth of meals in advance, you won’t give in to
the temptation to bring home a high-priced takeout meal.
-
Choose
eating in over eating out. Remember that taking out is
usually less expensive than dining in a restaurant. You’ll
probably eat fewer courses and eliminate paying a tip.
-
Bring a
calculator with you when you shop. This helps you keep
track of your total and discourages impulse purchases of
more expensive items.
-
Brown bag
it. Bringing your lunch from home will lower your daily
outlays significantly.
-
Use your
library card. Check out books and movies from the library
for free.
-
Carpool.
Travel with a co-worker to save on gas and parking costs. If
that’s not an option, find out if public transportation
would be a cheaper choice.
-
Leave your
credit card at home. If you keep it in your wallet at all
times, it’s available for purchases made on a whim. Carry it
only when you know you’ll need it.
-
Limit the
cash you carry. The less you have, the less you will be able
to spend.
-
If you
usually spend a lot of money at salons before holiday
parties, let a trainee cut your hair or give you that
manicure. Many hair salons or beauty schools offer services
given by trainees at lower rates.
-
Plan
simpler parties. You can entertain while on a budget during
the holidays by using your creativity. Throw a theme party
and ask everyone to bring a dish from a different ethnic
group, for example.
LET YOUR
CPA HELP
There are many simple ways to cut back on daily costs and
reduce your long-term expenses as well. Ask your CPA for
advice on the steps necessary to make a real difference in
your financial life, now and throughout the year. For more
smart spending tips, check out
www.feedthepig.org, a Web site created by CPAs to help
you build a solid financial future.
###
Produced
in cooperation with the AICPA.
©2007 The American Institute of Certified Public Accountants
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