Budgeting for Christmas

The economic crisis that has been sweeping Europe like a storm these past two years may seem to somewhat darken the holiday season. But all hope is not lost for the holiday spender. Here are a few simple tips that will help you and your finances survive the holiday season without having to completely quit playing Santa.

Make a list and check it twice.

Even Santa Claus must have limited resources for producing all those toys. After all, why do you think he gives only to good kids?

Like Santa, planning your Christmas shopping list is the best way to stay within your budgetary boundaries. You can start by assigning a specific amount and gift idea for every person on your list. After you have completed the list, add up the listed costs. Make sure the final figure remains within what you can really afford. If not, adjust it. And yes, seriously consider giving only to the "good kids." Where's the wisdom or honesty in spending money you don't have to impress people you don't like?

You should also make a separate list for other items, such as extra decorations to replace worn-out ones, the menu for Christmas dinner, clothes for the kids to wear for the holidays, etc. The bottom line: be realistic about the figures!

Keep track of all your purchases

In a nutshell, deduct every purchase you've made from the budget total to know exactly how much is left. This will help prevent you from "accidentally" blowing your budget.

Consider grouping your recipients

For instance, those nice assistants at the doctor's office can be given one big cake treat. That's more economical than having to buy individual presents.

Recycle some unwanted gifts

Unwanted gifts may be white elephants for you, but they can be heaven sent for others. So you got two massagers last Christmas? Give one to a beloved aunt this year. Or if you don't use massagers at all, give them both away!

The key to recycling gifts is to remove any telltale signs that the item was previously gifted - loose pieces of tape or wrap, name tags, the like. Make sure the item is in mint condition, and the box too! Clothes should still have their tags on them. Never ever give an item that you've already used.

Go minimalist on gift wraps

Those fancy ribbons and gorgeous wrapping foils can cost a fortune! Unless the gift is for someone extra special, it's perfectly all right to use cheaper gift wraps, even those made of recycled paper. It's not just budget friendly, it's Earth friendly too.

Use your credit card, but very prudently

Some credit cards can actually help your cash flow by letting you pay for your Christmas expenses in instalments. Just make sure you know where the payments are going to come from.

Following these tips, you could stay out of debt this Christmas. But if you've already gotten into debt last Christmas and are still at a loss on how to climb out of the hole you've dug yourself into, start the New Year right by getting debt management advice. The peace of mind and financial security it will give you in the coming year is the best Christmas gift you can ever give yourself and your family.