How-to Manage the Holidays on a Budget
The “Holidays.” Whether that word evokes warm, fuzzy feelings of family and togetherness, or outright panic due to the hectic nature of the season, The Holidays are often a time of heavy spending for families. If you can’t afford the hefty holiday bill, if you’re tired of overspending, or if you’re simply looking for a way to enjoy the holidays without all the chaos, Useful Things is here to help. This article will help you approach the holidays with a different frame of mind and a budget.
Preparing a Reasonable Budget
Preparing a budget is relatively easy. Sticking with it, however, is harder. To prepare a budget, take your monthly net income, deduct your monthly bills, including mortgage or rent, utilities, groceries, fuel for your vehicle, and other items you regularly spend money on. What’s leftover is your disposable income. See the sample budget below for tips. You can find this budget spreadsheet at Vertex42.com.
Next, determine how much of your disposable income you want to spend on the holidays.
TIP: It may be helpful to create separate budgets for each holiday related item, such as decorating, gifts, and food. (If you overspend in one area, you can always reduce your spending in another.) It may also be helpful to break the gift budget into a budget for each separate person. For example, if you have 5 people you’re buying for, and $250 to spend, you could spend up to $50 per person.
Once you’ve determined your holiday budget, withdraw that amount from your bank account, and only take the cash with you shopping. Leave your credit cards at home, so you’re not tempted to spend extra money.
If you’re shopping online, deposit your budgeted money into your checking account and use your debit card for purchases. And don’t forget to include shipping fees in your budget!
Track each purchase, and deduct the amount spent from your total budget. If you try to keep mental notes, or wait until your shopping is completed to analyze your budget, you may end up out of money before all of your purchases are made.
TIP: Start shopping early, so the hit to your wallet doesn’t come all at once.
The Gift List
Do you normally buy gifts for every member of your family, all of your friends, neighbors, and co-workers? Don’t. Instead, opt for one of the options below:
1. Buy only for those close to you, such as your parents, spouse, and children.
2. Buy only for those you know you will be exchanging gifts with.
3. If the above lists still include a large number of people, organize a one-person-one-gift exchange, where each person draws a name out of a hat and only buys a gift for that person. Have a spending limit on the exchange, but make it ample enough that everyone can buy their drawn person one nice gift.
Send everyone else a card, and/or make them cookies.
Alternative Gift Giving Ideas
The “Anti-Stuff” Holiday Gift List
The Get Rich Slowly blog recently wrote an interesting post about giving “anti-stuff” this holiday season. What is “anti-stuff”?
• Consumable goods, such as a wine and cheese basket
• Classes, such as craft, cooking, woodworking, kayaking, or piano
• Memberships to museums, the pool or hot springs, or the golf course
• Gift certificates to a spa, or bed and breakfast
• Tickets to a concert or sporting event
All of these gifts are individualized, and are meant to be used. In other words, they are not “stuff” that sits around the house and collects dust.
Read the full “Anti-Stuff Holiday Gift Guide” at Get Rich Slowly.
Homemade is the Way
If you’re looking to really cut back on your spending this year, or simply want to personalize your gifts, ask your friends and family members if you can exchange 100% homemade gifts. Examples of homemade gifts include:
• food stuffs, such as jams, jellies, cookies, breads, or even homemade wine
• a handmade Christmas tree ornament
• bath salts or other spa items
• artwork, such as paintings, drawings, metal-work, or wood-work
• crafts, such as knitted hats, scarves, or fleece blankets
• mixed CDS
• scrapbooks or photo albums
• a homemade dinner
Managing the Holiday Dinner Budget
Whether you cook for a two, four, or twelve, you know how expensive preparing a fabulous holiday feast can be. To pare down the cost, consider trying one or more of the following ideas.
1. Don’t buy prepared foods, such as rolls or pies. Making your own from scratch is more affordable.
2. Opt for less expensive options. A leg of lamb, goose, or seafood may be elegant, but the cost is much higher compared to turkey or ham, and often feeds less.
3. Cut down on the number of courses you serve. A main course with a pre-dinner salad or appetizer, and an after dinner dessert, is usually plenty.
4. Potluck. If dinner is at your place, prepare the main course, but ask your guests to bring a side dish.
Further Reading:
“11 Sure-Fire Ways to Save on Shipping”
via Bargaineering
