BUDGET

Christmas time is here, and with it comes one of the biggest personal finance challenges of the year. How do you juggle all the holiday costs and not look like a Grinch? It can be hard to maintain your frugal senses when everyone around you is into the spirit of giving, but just because you show your generous side doesn’t mean you have to go broke doing it.

Every year, millions of people make the same Christmas money mistakes that seem great but leave a horrible holiday hangover to kick off the new year. This year, avoid these common missteps lest you want your finances to be haunted by ghosts of Christmas past:

Whether or not you celebrate Christmas, you have probably heard the song “The 12 Days of Christmas” more times than you care to remember. Well, every holiday season, PNC calculates the cost of those gifts in their Christmas Price Index.

The infographic below shows how the cost of the items in the index have changed for 2010 (check out the 2009 12 Days of Christmas). Unfortunately, if you plan to buy your loved one everything from 12 drummers drumming to a partridge in a pear tree, budget for a nearly 10 percent increase in price over last year.

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Do you set a budget for the holidays but wind up going into the red every year? It’s a common problem and one that many of us share. In fact, the average American spends about $700 on gifts during the holidays and that’s not including décor, food, gift wrap and other expenses.

The days are getting shorter and colder, which means you’ve probably noticed your energy utility bills slowly creeping upward. Though you probably expect to pay more in energy costs during the winter season since you now have to heat your house, you may be surprised to learn that you’re also shelling out more cash because energy itself has become more expensive.

Every year, the Congressional Research Service forecasts how much residents in the U.S. can expect to pay to stay warm. This year, you’re looking at an average of just under $1,000. This means when you’re planning your budget, you’ll have to account for this added expense (especially if you live in the Northeast).

While most people talk about budgeting for Christmas gifts when planning for the holidays, few really discuss the financial strategy behind shopping for Hanukkah. After all, managing expenses for eight nights of gifts during the Festival of Lights requires an entirely different approach than that of buying one large present, especially when it comes to shopping for multiple people.

Though eight gifts certainly sound better to the person receiving them than just one, most Hanukkah presents aren’t major purchases like the ones people are accustomed to during Christmas. The tricky part here is that you can’t just throw money at this year’s hottest toy and mark it off your checklist. A successful strategy will require more thought and better budgeting skills, because as we all know, it’s the little purchases adding up that get you in the end.

Cyber Monday is the online follow up to Black Friday and offers a ton of great deals, so don’t miss out because holiday shopping doesn’t fit your budget. If you want to get the most bang for your buck while doing your online holiday shopping, consider the following Cyber Monday shopping tips.

Tips to Keep Your Bank Account Intact

Losing a job can be one of the biggest financial crises anyone faces during their lifetime. One day, you’re financially stable and the next you’re unsure you can make next month’s mortgage payment. Getting through an extended period of unemployment can be really difficult if you’re not prepared, so when your employer at the very least offers you a severance package, you need to know how to make the most of it.

What Is Severance Pay?

Changing careers can be an exciting, but sometimes stressful time. My first post-military job was a learning experience for me. I went from wearing a standard military uniform every day of the week to wearing a suit and tie and commuting twice the distance. The change provided an opportunity for professional growth, but it wasn’t without its trials.

One thing it taught me was that it’s always best to prepare for the changes before they happen. Here are some financial considerations to take into account before starting a new job.

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When it comes to following a budget, you hear time and time again how you need to identify patterns of needless spending and then slash it from your balance sheet. Eat at home, rent movies, buy generic, take the bus. However, being a savvy saver doesn’t mean you have to lead a completely dull existence.

Changing career paths is a decision that should never be taken lightly. This is especially true today when jobs are scarce and employment opportunities are limited. The current state of the job market might give a person pause; however, it should not be the only factor taken into consideration when switching careers.

Before taking the plunge into an unpredictable job market, consider the following mistakes that are commonly made when switching careers: