Tips like these helped us pay off $127K in debt. You can read our story in Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After.
This post was sponsored by Regions Bank. All opinions are my own.
If not careful, our fa-la-la-las spiral into ought-oh-oh-ohs when the holiday season has passed. Soon after the Christmas tree comes down, statements begin arrive and you my friend come down with a serious case of gift giving, over celebrating regret. If you want to keep those wallet woes away, the good news is you still have plenty of time to come to grips with what you will spend this year.
Did you know that the average American family will spend $786 on gifts alone this year? I love how Regions Bank provides consumers with smart insights to keep spending in check so that gifts can truly be gifts and not a curse when bank statements or credit card bills bring less than glad tidings to mailboxes in January.
Wondering what we do to keep our holidays happy and a set of balanced books at the same time? I’m so glad you asked. Here’s how you can spread cheer and still save your wallet this holiday season.
Save Money Throughout the Year
It might be a little bit late for this year, but it’s never too early to begin saving for next year. We choose to put back a percentage of our income on a regular basis until our Christmas budget can be fully funded with cash. This year, we set the biggest budget we have ever had before (although it’s unlikely we’ll be spending the $786 gift amount) and we’re pleased as punch when we had met our goal by the summer. Knowing that we have a targeted dollar amount AND that it’s already in the bank takes the stress and worry straight out of the holiday.
Budget, Budget, Budget
My husband Brian and I talk frequently about how much we want to spend on each person. Last year, I brainstormed all of the spending categories I could think of and then had a set of 7 Christmas Budget Forms created. We don’t spend in all of the categories every year, but I wanted to be sure I wouldn’t forget something and overspend. Setting target dollar amounts for the gifts we give help reign in any impulse buys or the compulsion to purchase “one more thing.”
Cash Only for Holiday Shopping
Before we began paying off $127K in debt, I found myself grocery shopping one Christmas season. Along with our regular weekly food, I had placed special holiday treats, décor, and a few gift items in the cart. When the clerk gave me my total I panicked. I had NO idea how much I had spent and when I reached in my purse to grab my wallet I was almost relieved when I couldn’t find it. I had left it at home. That experience was a wake up call for me. I can’t balance doing regular weekly trips while picking up “a few things” (it’s never just a few, is it?) for the holiday season. Instead, I try to bring cash only when I’m shopping for Christmas gifts (especially on Black Friday). Honestly, cash only is the best way to go for any shopping but separate envelopes for your holiday spending and your regular budget will be necessary during the months of November and December.
Stick to The Three-Gift Rule
Each year, our kids receive only three gifts for Christmas and a stocking full of useful and fun items. One present is a book because reading truly is a gift. One is a piece of clothing because I never want my kids to lose sight of the fact that a coat or a pair of shoes or that Captain America snapback is truly a blessing. The final gift is an awesome – and I mean awesome toy or wish list item. While the three gift rule reflects a bit of our faith (three gifts were given to the Christ child to celebrate who He was), they also give me a healthy boundary so I don’t go overboard.
Celebrate Time with Friends In Lieu of Gifts
Several years ago, we agreed with our closest of friends that we would treasure time together more than we would knick knacks or gift cards. So, during an incredibly busy season of the year, we choose each other and give the gift of time. We have a pitch-in dinner where everyone brings a dish to share. Sometimes we bake cookies for our friends and neighbors or we grab a deal on carry-out and our gift to each other is a meal that someone else cooked.
A bit of simple re-thinking can make your holiday season both more affordable and maybe even more meaningful. After all, Christmas can’t be measured in gifts given. Accruing more stuff doesn’t bring happiness. It’s easy for even the most seasoned of budgeter to get caught up in the magic of the moment. But placing boundaries and wise practices in our lives spreads joy throughout the entire year.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
