One Money Design

I can’t tell you how many times the topic of Christmas has come up in family discussions the last few weeks.  My wife has reminded me often it’s almost time to set up the Christmas tree (we traditionally do this right after Thanksgiving)!  I can’t believe the Christmas season is upon us!  I’m so excited, but where has the year gone?

As Christmas approaches us and we start thinking about gift giving, it’s important to keep wise planning and spending in mind.  The Christmas shopping season, while puts a lot of stores in the black, puts a lot of families in the red with much to clean up as the New Year rolls around.

There are a lot of helpful personal finance posts on the topic of Christmas spending and budgeting, so I thought I would share some of my favorites and their tips.

Budget first, spend second

You can enjoy a simple Christmas with a well planned budget according to a post in the Simple Mom archives.  I liked the recommendation to set a price limit on gifts before trying to search for the right gift for someone.  Often people get excited about finding a particular gift without having ever considered Christmas spending limits.  Once a limit has been set, you can be conscious of your limits and not spend more than planned.

Set up a Christmas Budget

Christian PF offers a simple step by step guide to setting your Christmas budget.  This guide to proactive planning your spending can keep you from getting yourself into spending trouble.

1. Make a list of the people for whom you’re going to give this season.
2. Determine how much you can spend.
3. Prioritize and categorize your list.
4. Make necessary preparations.
5. Stick to your plan.

I particularly like the advice to categorize the list into three groups: paid gifts, made gifts and no gifts.  Depending on your spending limit, you may not be able to buy something for everyone.

The “paid gift” group includes people for whom you’re going to buy a present.  The “no gift” group includes people, for example, you would send a Christmas card.  The “made gift” group includes people for whom you’re going to get creative and make something.  Having some priorities is important, especially when cash is limited.

Research before you spend

Bible Money Matters (from the archives) gives us some tips to avoid Christmas overspending at this expensive time of year.  I particularly liked the advice about conducting research before spending.  So, once your budget is in place and it’s time to do some shopping, conduct a little bit of research before purchasing a gift at the first store in which you find it.

Search websites like fatwallet.com, blackfriday.info, slickdeals.net, retailmenot.com techbargains.com and others to find the best deals, and money saving coupons for when you do buy. Find out the best time to buy, (black Friday -the day after thanksgiving – for a lot of items) and buy it before the price goes back up!

Reasons for giving

I don’t know about you, but I sure do want a debt free Christmas.  Money Help for Christian talks about how to have one.  A great suggestion is to think about your motives for spending before you start hitting the stores.

Sometimes we give gifts beyond our means to give a certain impression of our financial status.  Sometimes we give extravagant gifts because we fear rejection.  Sometimes we give expensive gifts because we are a giver at heart and giving is our love language. 

Make sure your reasons are genuine this season.  Otherwise, the emotions around motives, such as these, can lead to impulse decisions which may then lead to credit card debt.

Consider a Tinselectomy

Finally, there is a real opportunity to touch others in a unique way, through investment of time and thought this Christmas. 

To get into the spirit of giving this season, consider a Tinselectomy.  Our church has started a movement to encourage people to give, celebrate and live differently and turning Christmas upside down!

We all know Christmas has become too much–too commercial, too materialistic, too busy. This year, join a movement to turn Christmas upside down and give, celebrate and live differently.

You don’t have to go to our church to jump on board with the Tinselectomy movement, or start one of your own!

The movement includes three different ways to approach Christmas this year.

1. Give: give anonymously, giving to people you don’t know, or giving to people who can’t give back.
2. Celebrate:  venture beyond your comfortable circle of family and friends.
3. Live:  extend peace on earth and goodwill beyond men beyond the Christmas season

My favorite Tinselectomy ideas

• Give:  Go grocery shopping for the items you always keep stocked in your own pantry, and then deliver them to your local food pantry.
• Celebrate:  Help serve a meal at a local soup kitchen or homeless shelter
• Live: Send a handwritten note to someone who deserves some long-overdue thanks.

For other personal finance reading, the Carnival of Personal Finance was hosted by the Canadian Finance blog this week and included Thoughts on Mint and Mvelopes with Some Fiscal Fizzle.

Do you have any Christmas budgeting, spending or giving tips?  If so, share with us in the comments?

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• How to Live Off One Household Income
• Boycotting Products or Investments: Good Financial Stewardship?
• The Bucket Budget: A Simplistic Approach to Budgeting
• Can Money Buy Happiness?
• The Cone of Uncertainty and How it Impacts Your Personal Spending Plan