How To Make Christmas Affordable
Budgets, Early Shopping, and Avoiding Credit Trims Holiday Costs
Nov 12, 2008
Tightening the financial belt this Christmas doesn't have to follow Bob Cratchit's example in Dicken's Christmas Carol, but his moderation and thoughtfulness can be duplicated. If gift giving really means "the thought that counts," it is very possible to leave enough presents under the tree without overspending or maxing out the credit cards.
Plan Your Giving and Shopping Early
Begin by making a list of everyone you intend to buy presents for. Look at the finished list carefully and divide the names into categories. These categories should reflect the dollar amount you have budgeted for individual gifts. Family members will have a much higher dollar value than service people that may deserve thanks at Christmas. Establish firm values for all categories: $20.00 per family member, $10.00 per co-workers and close friends, $5.00 for people like the mailman or hairdresser. These sample amounts will vary based on the established budget.
Rather than blindly shopping, determine the total amount allotted for Christmas gifts and then break that amount down by category. This eliminates overspending or impulse buying. Making a Christmas budget helps to keep the fun in Christmas. There is nothing worse on January 1st than looking back with regret when all the receipts are tallied.
Ideally, shopping for Christmas should occur throughout the year whenever deep sales make terrific bargains possible. Specific shopping should be for gifts that the recipient needs or can use. Should you purchase a sweater if the person already has several in the closet? Would a book store gift card be more helpful to a college student with high text book costs than apparel? Early shopping adds logic to the process and eliminates last minute desperation purchases that will probably be returned anyway after Christmas.
Avoid Credit Whenever Possible
It may take months to pay down credit card balances, years if making the minimum payment. The biggest self gift is to pay for all purchases in cash. Although some banks still offer official "Christmas Club" accounts, putting money aside whenever possible, specifically for Christmas, is a good habit. Additionally, the resolve not to use credit will keep the Christmas budget in reason. Knowing available credit amounts can easily lead to the temptation of overspending.
The same logic applies to taking out a small loan or increasing an existing loan to pay for Christmas. Interest rates and ancillary loan costs will ultimately drive up the cost of Christmas spending. Homeowners with equity based lines of credit, despite their benefits on tax returns, should never sacrifice equity for Christmas spending.
Shop for the Lowest Prices
On-line shopping may be one of the most convenient and cost effective means to shop for Christmas gifts. Some merchants offer free shipping, coupon discounts, and generally lower than retail prices. Internet consumers can often find new items on sites such as E-Bay or Amazon that sell for a substantially lower price than in a mall store. Surfing the internet for sites that give rebate and discount codes for specific merchants lowers prices even more.
Creative Minds and Hands
Before the commercialization of Christmas, people made their own gifts and greeting cards. People with time and talent may find that the thought behind a Christmas gift is truly personal when hand crafted. Combine creative hobbies with Christmas gift giving for more memorable Christmas mornings.
Keeping Christmas shouldn't mean binge shopping without purpose or forethought. Premeditated Christmas shopping involves making a budget and sticking to it, developing a list of people to shop for, and smart shopping without the use of credit.
 |
 |
