I know, I know…we don’t even have the Halloween candy in hand, yet. How can I be throwing Christmas at you? Well, if you’ve been following our series then you know that we need to take some time to anticipate expenses and plan for them. The holidays are no different. If you want to start next year without a pile of debt and little memory of where it came from then you need to take a few steps now to keep from falling back into the same old habits.
Make a Plan
Start with a budget of how much you could reasonably afford to spend in cash this Christmas. By using credit cards we numb ourselves to how much we’re actually spending. It is important to buy everything with cash. Make a list of all of your holiday expenses: gift recipients, decorations, postage, wrapping paper, food, baking supplies. Then assign a dollar amount to each one. If you’re over the amount you feel you can afford, start cutting. It isn’t necessary to buy gifts for every niece, nephew, neighbor and hairstylist in your life. Keep your gift-giving list to a minimum.
Find a Hidden Source of Revenue
While some stores do offer seasonal jobs through the end of Christmas, it may not be realistic for you to take on a second (or third!) job but there are other ways to find hidden money in your budget. Take a week or two and cut your spending drastically, no eating out, no Starbucks, nothing that is a non-essential. All of the extra money should be placed into your savings account to go toward holiday spending. If you’re receiving a large tax refund every year, you’re giving the IRS an interest-free loan. STOP IT! Change your withholdings with your employer and use the extra money in your paycheck to pay for Christmas. Look for unused gift cards to use for purchasing gifts. Cash in your credit card reward points toward gift cards to spend on holiday shopping. Get creative!
Secret Santa
Do you find that buying gifts for everyone at the office or for your entire extended family is draining your account faster than a shopping spree at Neiman Marcus? Suggest a Secret Santa or Pollyanna gift exchange where each person draws the name of one other person and the gift-giver remains a secret until a special “reveal”. Sites like Secretsanta.com can help you create and keep track of yearly exchanges so that you don't end up with Cousin Ralph three years in a row.
Channel Your Inner Martha
Consider giving homemade gifts. I’m not talking about knitting an afghan for your boss (although, she might actually like that!), I’m talking about creating something simple and special from you that won’t break the bank. Have you seen the e-Book, A Handmade Holiday from our Crafty Mom, Nikki over at Nikki, In Stitches? She’ll help us find that inner Martha Stewart. Mary Hunt’s book Debt Proof the Holidays
also offers excellent suggestions for making and giving thoughtful and useful gifts that don’t require a lot of money. Keep your eye out later in the week for another unique gift idea from Celeste (our Cooking Mom)!
also offers excellent suggestions for making and giving thoughtful and useful gifts that don’t require a lot of money. Keep your eye out later in the week for another unique gift idea from Celeste (our Cooking Mom)!Combine Holiday Tasks
Many of us like to give to charities around the holidays. Why not combine two types of holiday giving into one! Purchase gifts from organizations that help others. Here are a few organizations that will use the profits from the sale of your gift to help those who could use a hand up:
- Just Love Coffee Roasters – the profit from the sale of their Fair Trade coffees goes to help adoptive families afford adoption and to help build schools for older orphans in Ethiopia.
- Haitian Creations – sells jewelry and purses made by Haitian women who have learned this craft as a means of supporting their families. They offer the opportunity to have a purse party, too, to get your friends in on the action.
- House of Hope Nicaragua – their greeting card business helps women to leave the sex trade in Nicaragua and provides the women a chance to learn a skill to support their families in a legitimate manner.
Have a White Elephant Party
For a fun family or office party, try a white elephant. Have everyone bring a gift from home that they no longer want/need but is still useable and begin the exchange. It’s good for a few laughs and an afternoon or evening full of fun memories.
Shop Sales and Stack Coupons
It’s time to make shopping a strategic sport. Only buy items that are on sale and ONLY if they are on your list. Look for online sales and use discount codes or free shipping offers. Did you find a good deal but don’t need the required amount to get the deal? Go in with a friend to make your purchase and you’ll both get the most bang for your buck.
Control Your Emotions
It’s hard to reign in the holiday merriment when Christmas music is playing, you’re sipping an egg nog latte and the sales in each store just get better and better. This is why it’s important to anticipate the emotional manipulation and plan for it by making a list and sticking to it. Your kids don’t need one more game, its okay that you decided not to give Aunt Betty yet another house for her over-flowing Dickens Village this year and, yes, your mom will adore the handmade gift from the kids. Don’t allow clever-marketing ploys to cause your feelings to run away with your credit cards. Think back to last Christmas and make a list of all of the gifts you bought for everyone. What’s that? You can’t remember half of them? Think about that the next time Target and their well-placed toy display start sucking you in.
Keep Track
If you keep track of your spending for this Christmas, you will be in a better position to determine what you can cut next year and how much you will need to start saving every month beginning in January so that you don’t find yourself scrambling in October, yet again.
The holidays don’t have to be a burden if you plan for them. Don’t let the chaos of the holidays drain your spirit and your bank account. Make your list, check it twice and then move on to a merrier holiday season than you’ve ever had before!
Do you have any money-saving holiday tips? Let us know...
Kim is the wife of one rockin' Worship Pastor and full-time mom to four crazy and beautiful kids. Toss in a part-time job, housework, a blog, training for a foster care license and what passes for a social life these days and she’s still wondering how she fits 32 hours into a 24 hour day.
