Holiday spending: Creating budgets for traveling expenses, bills, gifts can prevent going into debt

Photo By Gunnery Sgt. Alicia Leaders | Marines and sailors get paid twice a month to pay their bills, necessary expenses and travel expenses, regardless if they are driving out of town or driving to work. In order to have extra spending money for holiday gifts, personal attire or video games, a Marine or sailor needs to ensure they limit themselves to how much money they can afford to spend.  

MARINE CORPS AIR STATION NEW RIVER, NC, UNITED STATES

11.22.2011

Story by Lance Cpl. John Suleski 

Marine Corps Installations East       

MARINE CORPS AIR STATION NEW RIVER, N.C. - The holiday season is an opportunity for spending time with family, festivities and oftentimes, shopping. This shopping for gifts, decorations and traveling can drain bank accounts and increase credit card balances quickly.

Fortunately, there are several tricks to spending wisely so the holiday season does not put anyone in financial trouble, said Marilyn Nakamura, Marine and Family Services Prevention and Education specialist.

The first step should be to calculate how much a person spends during the holidays. This includes figuring out total income and calculating bills, other necessary expenses and contributions to savings. People should be careful to foresee rising costs during the winter. Examples are higher fuel prices for winter travels and higher electric bills from keeping the house warm.

After calculating bills and expenses, a spending limit should be set. By setting a spending limit, no person should go into debt during the holidays. It is then up to the individual to plan how he wants to spend his money, whether it is for Christmas gifts or traveling out of town.

Before stepping foot in a store, Marines, sailors, or their family members should have a list of who they need to buy for and how much they can afford to spend on each person. By doing this, they will not cut themselves short.

Those ready to shop should also keep their eyes open for businesses holiday season savings.

Marines can shop around for the best prices and purchase gifts before businesses raise prices for the season. Businesses typically have great deals the day after Thanksgiving, known as Black Friday. Black Friday is named for businesses hoping to go “in the black” and out of debt from massive sales.

After Black Friday, however, stores may raise prices on popular gifts to maximize profits. To avoid spending more money on last-minute gifts, it is important to shop throughout a period of time vice all at once.

Marines can also save money by creating gifts for their loved ones instead of purchasing a gift.

“One year, my husband and I created our own gifts, and they have been the most meaningful gifts we have,” said Nakamura.

Nakamura’s husband gave her a wooden cross attached to a heart containing her favorite picture of their family.

Holiday gifts are not the only expense that adds to the monthly bills – traveling causes a big dent toward income.

The next part of the plan deals with traveling. Many Marines and their family live away from home because of their work. Service members use the holidays as a time to travel back home to spend time with the rest of their family. Traveling during the holidays can be expensive because most people, military or not, are trying to go home.

However, Marines can save money by comparing prices and reserving tickets before prices get steep. This might include traveling on different days of the week and different times of the month.

To help pay for all expenses, Marines should avoid using credit cards and should never open a line of credit under stores that advertise a discount for getting a credit card. Nakamura said it will only lead to more spending.

Marines should also not take out loans. Some people take out loans and expect to pay it off with their income tax refunds, said Nakamura. No one should ever rely on it. If they get less than expected or even owe money, they are in for a world of financial hurt.

If Marines spend responsibly, the holiday season will be relaxing instead of stressful, said Nakamura.

• Date Taken: 11.22.2011
• Date Posted: 11.22.2011 09:21
• Story ID: 80390
• Location: MARINE CORPS AIR STATION NEW RIVER, NC, US