Frugal Christmas: Staying under budget

A frugal Christmas does not have to mean you become the Grinch, but it does mean not spending in excess. The TV reports have us all fearing this "bed economy" and for some that may mean not spending anything on Christmas. But other reports say to "Spend, Spend, Spend"-that this is the way to strenghten the economy- keep the money moving. I think everyone's situtation is different and you need to do what is right for your situation.

If, like me, money is tighter than normal this year you may have to take a long look at your Holiday budget and make some cuts. My usual budget would be $1200 and that is for everything.. gifts, parties, pictures, cards and stamps, gift wrap, everything. I am hoping to stick to a budget this year of $900. At this point I have already spent $510 and if I stick to my "left to buy" list I should only spend another $300. So all is looking good for staying under budget. (about $90 under budget to be exact!)

So how did I cut out over $300 from my previous year's budget? Maybe you can steal some of my ideas and apply them to your own holiday budget.

First, I cut out things that were "not necessary" for the true holiday spirit. Some of these things included- Holiday parites. My school has a holiday party and everyone brings a grab bag gift for about $20-$25,and also brings a "dish" to the party. Although this is a fun night, Ican also enjoy time at home and one more night free to work on other Holiday things. I have choosen not to attend this year and that saved me $25.

Second, my husband and I will not be exchanging gifts this year. In years past we have not exchanged large gifts, just a few small things, and possible an item for "the house". This year we will not even exchange small gifts. which is fine with both of us. (And this year the kids have a dog-walking job, so they will be asked to "go in" together on one gift for each of us with thier own money) Not exchanging gifts saved us about $125.

Third, we will not be having the kids pictures taken at Sears. Last year we took some at-home candid shots of the kids in front of our Christmas tree and then downloaded then to Kodakgallery.com and had cards printed. They looked great and with discount codes ordering the cards online wasn't expensive. At Sears we would order "by sheet" with a coupon and just buy an 8X 10 for our family frame and then 6-8 sheets of wallets to put into regular cards (cards are purchased the year before significantly reduced after Christmas). Doing our own pictures and photo cards saves us about $50.

Fourth, we looked closely at how much we were spending on those we had on our "Giving List"and to see if we could lower a few of those amounts. We also cut out some more distant relatives that we haven't seen in years and always keep that "just in case" gift in the closet. Everyone gets a card, a pic of the kids, and a heartfelt Holiday wish, and for most that is all they need. So from lowering our budget numbers and cutting out a few small gifts, we saved another $100.

These first four ideas got our budget from $1200 down to $900, but if my calculations are correct I will only end up spending a little over $800- so where does that difference come from?

This is the last but I really think the most important change, and the one that truely reflects my change in attitude towards money and spending. This year if my "virtual envelope" for grandpa has a $50 budget but I am able to use coupons, store discount or shop sales and purchase a $50 item but only pay $35- I AM DONE! I have purchased this person a $50 items- it's value has not changed and the person will appreciate it the same, and in most cases they will never know I didn't pay $50 for it. This is a big change from my outlook in the past. Normally I would have though I only spent $35 on that person and I still have $15 to go get them a little something else. I have decided this is CRAZY! If something is $50 and my budget is $50 and I can get it for $35- then I am done with that person and I cross them off my list. So my last savings tip is use coupons, discount codes, and sales and buy everything discounted! Then stick like glue to your budget for each person based on "regular price" not the "sale price". This should save me that additional $90 I am under my 2008 Christmas Budget.

Total saved: $390 -- Go Frugal Christmas!!