Brace for the Holidays! Have a plan

As Halloween passes, we know that the season of over-buying and over-eating is approaching, so it’s time to prepare.  You want to enjoy being with friends and family without having the hangover of overspending, or worse, going into debt to finance all the fun. 

Make the gift giving fit with your cash management

Over-buying does not make you happier and usually makes the recipient uncomfortable.  Also, over-spending is likely to make achieving your long-term goals more difficult, which can add to the depression some feel at this time of year.

For gifts, “it’s the thought that counts” rings true.  Most recipients appreciate being remembered for who they are and what they do.  Think back to what you enjoyed most in past holidays and let that guide you.  This can help you stick to your values as you think through the entire process and devise your holiday shopping plan.  The time spent together may be far more important and rewarding than unnecessary giving.

Have a plan

Technology and social media can make shopping easier, but they also make it easier to overspend and end up with credit card debt from funding your gift giving.  

Part of the reason is that many such purchases are spontaneous.  People often regret these unplanned purchases.  Over 70% of people in one survey exceeded their budget and over half bought items not on their list.  This can make the new year bleak (More than 3 in 4 Americans are stressed about going into debt over the holidays — and technology’s not helping ) Counter this by creating a realistic budget, lookout for sales, review your budget to make sure you are on track. 

Budget – If you determine what you can reasonably spend and allocate that to people for whom you want to buy gifts, or give holiday tips, then you have a spending plan that should get you through.  When devising your plan, go back to your financial goals to remind yourself why staying on track is so important.  Include time for present wrapping to avoid time pressure that encourages splurge buying.  Also, you may want to have small gifts on hand for unexpected guests.  You can use budget apps, such as NerdWallet, to create a budget.  When you do, stick to it! 

If the people for whom you are shopping have wish lists, follow them for ideas.  And leave items in your shopping cart overnight to take a second look and avoid regretting a splurge purchase.  Ask “does the person really want or need this?,” especially if you are shopping for yourself!  (It may be wise to avoid, or at least substantially limit, any buying for yourself.) 

Be Wary of Black Friday, Cyber Monday and other retailer tricks

If you do your homework, you can determine if waiting in line or buying on line will be best.  As stated above, create a budget and stick to it.   

Be on the lookout for retailer other tricks like flash sales, loyalty cards, incentives to return for more purchases, misleading refund policies.  Similarly, procrastinating can lead to splurge buying ruled by emotions such as the need to please everyone and get the shopping done.

Avoid scams

With the pressure of the holidays to address all the gift giving, parties and thank yous, stay vigilant for scams.  These can come in the form of bogus IRS and social security calls, credit card offers, computer software deals and fake invoices.  There are many phishing sites you can use to check out whether the offers are legit

Review our Holiday Tipping Guide

As for tipping, see our post Guidelines for Holiday Tips and Gift.

Remember, if you’re unable to tip or give a gift, a thoughtful thank you note will acknowledge those people who are important to you.  You can even make a donation in their name. 

Brace for over-eating and possibly even depression

This blog is does not profess to have any expertise in psychology.  Nonetheless, we have all heard how holidays can be disappointing if not depressing from some.  The Hallmark gatherings promised on TV or social media rarely happen in real life. 

If the holidays are depressing, consider volunteering somewhere, such as a soup kitchen, or getting out for some serious exercise.  Both can lift your mood as well as either help others or improve your health.  Allow time to rest and recover!  And try a warm drink, tea not bourbon, or a warm bath. 

Take care of yourself – it’s hard to help anyone else if you are not in good shape yourself.  But if you are really experiencing holiday depression, speaking to people can help, be that family, friends or professionals.

We wish you all the best for financially sound, and fun, holidays!  And let us know if we can help you plan.

Holiday Tip and Gift Guidelines

As we recover from Thanksgiving, we turn to Black Friday and then Cyber Monday, so the holiday season is in full swing.

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Part of your gift giving may be tipping those around you upon whom you depend. While gift giving etiquette may be obvious in some instances, it can get less clear when considering gifts for people outside of your friends and family. So, to help you navigate the season, we have put together a guide of suggested amounts for gifts and tips, as well as final comment on notes and cards in lieu of cash.

We all have people in our lives that help us keep our families, homes and businesses on track and get through each day as we move forward throughout the year. In many cases, the services they provide ensure we can go to work, have clean homes and stay fit, including caregivers, delivery, home maintenance, and personal care services:

Caregivers (for kids, parents and pets, too!)

Caregivers for your children, parents and pets can be lifesavers. They provide care, education, exercise, and attention to those you care about most. This is the time of year to let them know how thankful you are for all that they do. The amount of service they provide and the arrangement you have with them can dictate the appropriate gift level:

  1. Nanny/au pair – a week’s salary and a small gift;
  2. Daycare teachers – a $25-$70 gift;
  3. Home healthcare worker – a week to a month’s salary;
  4. Teacher – a small gift and a handmade card from your child;
  5. Dog walker – depending on your walker’s schedule, you may want to gift a day’s pay or a full week’s pay; and
  6. Dog groomer – half the cost to the full amount for the service.

If you contract any of these services through an agency, you may want to contact the agency to find out if they have a gift-giving policy in effect. If the agency prohibits gifts, consider alternatives like making a donation to the agency or sending in homemade cookies to the office.

“Neither snow nor rain…”

Despite the weather, terrain or traffic, your mail carrier delivers your mail every day and your online purchases arrive on time and in good condition. Let those who make those deliveries know you’re grateful. In deciding what and how much to give, consider the particular company’s gift giving restrictions:

  1. Mail carriers – are not prohibited from receiving cash gifts and gifts more than $20;
  2. FedEx – employees may accept gifts under $75, though no cash or gift cards;
  3. UPS – workers are allowed to accept tips, but UPS discourages the practice; and
  4. Newspaper delivery – $10-$30 is standard.

Home Maintenance:

Whether you live in a single-family home or a large apartment building, it’s likely there is someone who services your home or property in some way.

  1. Trash and recycling collectors – $10-$30, which you may want to mail directly to the collection company if you’re not home to hand deliver it;
  2. Doorman – $25-$100;
  3. Regular cleaning person – the cost of one visit;
  4. Landscapers/gardeners – $20-$50 per person or if you have just one person doing the work, the cost of one visit;
  5. Parking garage attendant – $10-$50; and
  6. Building’s handyman, superintendent and custodian – $20-$100.

If you have someone who always goes the extra mile, such as a handyman who’s prompt and efficient or a doorman who is quick to carry heavy packages for you, then a larger tip may be warranted.

Personal Services:

It’s hard work keeping you fit, perfectly coiffed and beautiful, but recognizing the efforts of those who do is easy and may also buy you scheduling flexibility when you really need it. In deciding whether to tip and how much, consider this:

  1. Hairdresser/manicurist – if you’re a frequent visitor, tip the cost of one visit. If you’re a less frequent customer, then $20. However, if you tip generously through the year, you do not need to give an extra tip at the end of the year;
  2. Personal trainer – up to the cost of one cost;
  3. Massage therapist – also cost of one visit; and
  4. Golf or Tennis instructor – a thoughtful gift.

If you’re unable to tip or give a gift, a thoughtful thank you note will acknowledge the good work these people do for you throughout the year. Another effective gesture of gratitude is to send a thank you note to the supervisors of the people who provide you with great service throughout the year, letting them know how impressed you are with the service you receive. Good feedback is appreciated by both the supervisor and the people who are helping you out.
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