Entertaining around the Holidays

You might think that October 2nd is too early to start thinking about it...but before we all know it, they're here.....So maybe this year I will get ahead of myself and start planning now.

This article written by Kara Schumann, and it's topic of Budgeting for the Holidays is very timely. Enjoy!

What are the things that come to mind when the Holidays are near? Gifts, travel, and entertainment -- for most people, it can mean overusing their credit cards leading to outrageous DEBT even before the holiday is over. but at least the ENTERTAINMENT side of things doesn't have to require you to empty the entire contents of your bank account.
WHERE'S THE PROBLEM?You may think that talking about your credit score during the Holidays as when everybody should think of happy thoughts is out of sync. It is. However, it is better to be aware of how your credit rating is doing even before you have the chance to spend your entire life's income for one season alone. Despite the fact that majority of Americans are open to the idea of spending LESS during the holidays, a National Retail Federation survey shows that the average American individual projects to spend at least $817 for Christmas-related expenditures! Americans have become so dependent on plastic that their total credit card balances amount to over $600 billion. This propensity to spend more and incurring holiday debts is evident with a survey conducted by the Consolidated Credit Counseling Services, Inc. which shows that at least 54% of those who have incurred Christmas debts during the previous Christmas were still paying off their credit card BALANCES by the next November. If you don't want to be included in those statistics then here are some budgeting tips to keep your holiday entertainment expenses under control.
PLAN AHEADYou worked so hard the past year so you deserve to enjoy the holiday -- while gathering with loved ones is good for your self esteem and physical well-being, it is best to plan your entertaining ahead to get as much SAVINGS as possible from the holiday sales. Shop for non-perishable items -- like serving pieces, decorations, and invitations -- the day after Thanksgiving or just after the holidays for the next year. The amount you save can be used for other expenses required for your party.
SAVE FOR YOUR ENTERTAINMENT EXPENSESGo ahead; entertain your friends and family during Christmas. Throw a ton of parties and be generous about gifts when you're the attendee. Go to plays and concerts and special holiday events. But make sure you are financially PREPARED for your entertainment expenses as well. Saving at least $100 each month and putting the amount in your holiday entertainment kitty will allow you to hold parties during the Holidays without breaking your bank account or adding up to your credit card balances.
TRY A POTLUCK PARTYIf you must entertain friends or family during Christmas, why not hold a potluck party where each guest bring his own dish to be SHARED with everyone? This way, the whole group shares in the entertainment expenses and you avoid overspending and incurring holiday debt.
SET A BUDGET AND STICK TO ITKnow your financial STATUS and make a entertainment plan based on that. Once you have a desired budget, stick to it to avoid holiday debt and a possible negative credit rating due to unpaid credit card balances. It is ideal to list all the POSSIBLE expenses as a consequence of your holiday plans and tailor-fit such expenses to your budget. The way you spend your money or use your credit card (along with other factors) will determine your credit score. The higher your credit score is, the more attractive you are in the eyes of creditors. You have time to prepare for your holidays so why not allocate money for such purpose ahead of time? It is better to develop good budgeting skills and keep your credit ratings high in case you need credit for more important matters when the holiday is over.

Kara Schumann is the founder of New Freedom Credit Consulting and a Certified Credit Consultant