Holiday Budgeting....Really Think About What You Spend for Christmas

**Given how close it is to Christmas this may or may not help anybody out this year but it's worth a read and a think about implementing this next year if not this Christmas.**

A recent Coinstar survey found that 65% of US adults who give presents at the Holidays establish a budget.  This is a good thing.

Even so, 85% of those folks admit that they go over their budgets for present buying, travel, decorating and other expenses of the Holidays.

However planning ahead CAN reduce the risk of overspending or overspending by a massive amount.  It's hard to keep to a budget and hit that goal if you don't have a target of any kind, right? ;-)

Here are some ideas ideas to help keep you on track this Christmas spending season......

1.  Estimate ALL your Holiday spending not just what you spend on gifts.  List all categories of spending that take a hit at the Holidays--gifts are just the tip of the iceberg!

Here are some categories to consider.............

GIFTS-'nuff said.lolz   How wide is your gift giving circle?  Immediate family? And extended family?  And friends?  And co-workers?  And business associates?  And people who provide services to you like--mail people, your children's teachers, trash collectors, doormen, really wait staff, delivery persons, dog groomers, etc.?  Look at how many people you feel obligated to give gifts to(either due to your own standards or just because they give you gifts so you feel compelled to reciprocate)and really think hard about how much this is costing you financially.

DECORATIONS- There is the decorating(trees, other Holiday displays, tablescapes, mantle displays, special decor in rooms such as dens, kitchen, bathrooms, etc.).  Americans can go crazy decorating for the Holidays.   Don't forget that if you electrify your decorating then an additional nice added chunk of utility usage gets tacked onto your decorating totals.

CLOTHING-Holiday gathers often necessitate wearing clothes that are special to the event or to the party.  Holiday parties that require evening wear, special clothes for Church and Church events, Work Holiday parties, even ugly sweaters for those types of events.  Unless you already have appropriate clothes for a given event, add in some cash to get yourself properly outfitted.

PARTIES/ENTERTAINMENT-If you throw a party or gathering be sure to put enough money aside for all that party food and drink and the entertainment(be it a professional band or buying supplies for a game or activity held at your party).  If you plan on attending a party where you are required to bring a dish or drinks or a wrapped toy donation, etc. be sure to include those costs in your budget.

TRAVEL-If you go away for the Holidays(be it fly or drive or take a train)make sure you budget for tickets, cabs/Ubers, the gas, car rental, nights in motels along the way or at your destination, food to eat along the way, etc.

FOOD/ALCOHOL-Many people have Christmas traditions that involve special food and drink.  Don't forget, if you don't include these items in your regular food budget to put aside extra money to procure these extra goodies.

The most important thing is to figure out what you can afford to spend without racking up credit card debt.  Seriously, don't go into debt to pay for Christmas.  No trinket, food, special night out, etc. is worth paying months and months of interest on to get out of the financial hole you might dig for yourself.  Gifts for the kids and seeing their smiles on Christmas morning are nice and heartwarming to a parent/grandparent but better yet is knowing you aren't jeopardizing their financial futures(or yours).
There was a segment on the news just last night here about a survey that found how a good percentage of Americans(I didn't catch the exact figure)are STILL PAYING OFF THE  HOLIDAY PURCHASES PUT ON THEIR CREDIT CARDS FROM 2017!  And the kicker is, these same folks plan to put their 2018 Holiday purchases on credit card again!!!  Don't be one of those people.

Now take the realistic amount you can afford to spend on Christmas and figure out where to apply that money and where to cut the budget or cut out spending altogether.  I like to prioritize the categories and fund what is most important to me(some gifts and food)and leave off what doesn't add to my personal Holiday Joy(parties, clothing).

Don't get rid of Holiday items that can be reused year after year.......trees, decorations, lights, ornaments, decorative candles(unless you burn them), holiday clothing, etc.  Save those boxes and gift bags and bows and reuse them year after year.

Maybe this is the year you actually acknowledge to yourself that you can't afford to do "up" Christmas like you'd wish or you have in the past(and you really couldn't "afford" to do as much as you did back then).  Good on you on being honest with yourself and not giving into the social pressure to spend, Spend, SPEND!!!

If gift giving is a priority for your Holiday then start NOW to plan for your Christmas shopping next year!  You can reduce so much stress in your life by buying throughout the year when you find a great sale/deal.  But the caveat here is to--make sure you have a person to gift that "whatever you got for pennies on the dollar in Feb." to next December and that you have a secure place to store it for the next umpteen months.  If you end up losing it and/or no one to gift it to that gizmo is better left in the store.

If you have your gifts bought before Thanksgiving and Black Friday comes around it just melts the stress away.  If you buy/collect all your gifts(or at least the bulk of them)before the Christmas season arrives you can relax and focus on something else during the Holiday and not have to fight the crowds at the stores(because face it, the stores are a ZOO in December!)or worry that those last minute purchases made online will arrive in time.

If you have a rewards program through your credit card or do Swag Bucks or some other small money generating online scheme, you can put more cash into your budget.  Play mind games with yourself throughout the year by joining a Christmas Club account at your bank, or saving spare change/small bills, or keeping all rebates received throughout the year to throw into your Holiday spending budget.
If you are diligent and find enough ways to fund Christmas in this way you may be able to stay away from using credit cards and/or your regular income and still have a jolly holiday!

If your extended family or even your nuclear family is expanding exponentially you might want to pow-wow with the adults in your family about cutting the gifting expenses by either discontinuing gifting for the adults(and put the gift focus back on the kids and/or the elderly in your clan)or institute some sort of gift exchange--draw names and only buy for one other person, etc. and set a money limit.

Also think about homemade gifts if you have a talent in that vein.  Sometimes they can be less costly in money but will take up more of your time.   Most anyone is appreciative of something  made specially for them.

I want to close with this video CT MOM shared on her Facebook group awhile back of the most recent Martin Lewis' Money Show.  The clip is HERE.  It's just a small piece of the show.

Here's an interview he did in the UK about this show back in late September......



I'm not trying to be a Scrooge and say you shouldn't spend at Christmas.
All I want is everyone to take a good hard look at what they are spending and really think about whether it's a realistic amount you should be spending and can afford.
Does your Holiday spending impact your financial future?

So who's with me when it comes to simplifying Holiday spending?


Sluggy

The Holiday Spending Has Commenced!

Last Sunday, when I was at Big Lots buying food and canning jars with my 20% off coupon, I also began my Christmas gift buying.

First off let me say that we don't do a lot of commercially bought gifting at the Holidays.  I am on my 4th year as a member of The Compact Group(check them out on Yahoo Groups), so I don't do indiscriminate 'stuff buying' as a rule.  Not even at thrift stores or yard sales either.  I figure I spent the first 45 yrs. of my life acquiring 'things', so I'll spent the bulk of my time during the next 45 yrs. getting rid of stuff or using up the stuff I already have.

That's not to say that I don't buy things but it's only after a long and thoughtful process of figuring out it's really REALLY needed or wanted.

So anyway, since our kids are past the 'toy' stage, we don't buy much stuff anymore at the Holidays.  Being teens they do constantly want more expensive things but we keep the amount we spend on them turned down a few notches on the expense knob and generally they receive a few articles of clothing(which THRILL them to no end...lol!), and either gift cards, cash or 1 big ticket item.  So for the kids, I only usually buy/acquire 10 or so gift items total each Christmas.  Hubs and I only exchange a token gift or two since there is not much we need that we don't have already and if there is something we really really want, we can just go out and buy it ourselves.
We have few relatives outside of our immediate family and we generally give food items to them.  All of our friends live distances away so we send Christmas cards only if we get the energy and time.

That leaves the stocking stuffers.   I enjoy hunting around for the stocking gifts.  I don't care to just do generic stocking gifts(everyone gets the same thing kind of gifts-like a cheese log, socks, and candy canes).  I try to tailor the stuffers to the recipient.
Our stockings do have some 'traditional for us' gift requirements.
Everyone gets either socks or undies in their stocking.
Everyone gets a couple of personal hygiene items(shampoo, deodorant, make-up for the gals, combs, toothbrush, etc.)
Everyone gets a candy treat.
The rest of the space in the stockings I try to fill with interesting items I find throughout the year.  Mostly I try to find useful items but sometimes I do buy something totally wasteful, cheap and fun...gasp!
 

Here is what I picked up last Sunday for Christmas....

3 pack of Hot Sauce, 3 pack of Socks, 3 pack of Undies.  Guess which one my sons are NOT getting?lol
With the low price at Big Lots and my discount I spent a grand total of $9.60.

So I only have 2 more socks/undies gifts to acquire now for the stockings.(1 for #1 son and 1 for Hubs).

As for the personal hygiene stuffer items.....I have that MORE than covered with all my Rite-Aid free goodies!
I'll wait until closer to the Holidays to pick up their candy items(unless I see something uber cool before then that will store well).
So my stocking stuffers list is down to 2 socks/undies gifts, 3 candy/treat gifts and then the 4-8  'special' wacky gifts.

I'll be working on a list this week, of possible items to pick up in the coming months, to finish off what I need to gather for the Holiday gifting.  I'll keep my eyes peeled and try to pick up meaning items on sale/clearance/ for cheap.  Everything goes into a designated box hidden in the house so that when December rolls around I can find it all.  There is nothing worse than buying throughout the year for the Holidays and then NOT being able to FIND IT when you need it! 
Been there, done that, bought the t-shirt as they say....

I always hope to be finished or at least have all my purchases planned out by Dec. 1.(Some gift cards I wait until then to purchase but I've decided on which/what by Dec. 1.) 
That leaves me free from shopping stress in December so I can do other things during the Holiday Season besides fight someone in Macy's over who's going to buy that ugly sweater in our paws.

I usually spend around $850 total for the Holidays.  That includes $200 per kid, $50 for spouse and $200 for all other items(cards, baking, meal, decorating, etc.)  If I do mail gifts of food, this amount doesn't include postage/shipping.  This amount also doesn't include what Hubs spends on me....he is the loose canon in this budget.lol
Now our family does spend about on par with what they say the typical American family spends at the Holidays.  Let me say that we don't buy 'stuff' for our kids all year round like many parents do.  No xboxes are purchases just because someone here whines that they are bored or such and I don't lay out big money for name branded jeans, shoes, 'fill in the blank', etc.  Birthday presents are modest so Christmas is the ONE TIME in the year our kids get the neat stuff.

And since we have no debt at all, we can afford to spend this amount.
And since we budget for this expense all year($16.35 a week put away), we have the CASH and don't put any purchases on CREDIT!

And if you need to use credit for the Holidays, perhaps you should step back and consider what a bad idea that is before you pull out the Visa card again.....
Don't put your financial life in jeopardy for gifts that no one will remember a year from now and you'll still be paying for in 10 years!
Make this a CASH ONLY CHRISTMAS!  You will be so glad you did.....

Since my family doesn't read my blog, I'll post here in the coming months what I buy and keep a running tab on what I've spent.
2010 Christmas Spending Total....$9.60

Here is an interesting article on Skipping the Holidays Expenses HERE.  Let me know what you think about it.

Have you started your Holiday spending yet?  
Do you have family stocking traditions?
Do you have a budgeted amount for it or do you just buy and buy?
Do you put your Holidays on credit cards?

Sluggy