1) Decide on a TOTAL Christmas budget: When you start gearing up for Christmas shopping (I usually start right after Halloween...) decide what your Christmas budget is going to be. Ideally, you should have been stowing money away for a while, or at least had a plan where this money was going to come from. Deciding on the budget should NOT be determined by how many people you have to buy for or by what you believe people expect from you, it should SOLELY be determined by how much you can afford! For us, this budget has been $1000 total. This includes traditional gifts, stocking stuffers, hostess gifts for parties, gag gifts, and neighbor/coworker gifts. Once you have decided on your total budget, go to the bank and pull it all out in cash. (Again, if you have been saving and planning ahead, this should be easy!)
2) Start an envelope system solely for Christmas shopping: Next, grab a whole bunch of blank envelopes and a pen. Put a name or category on each envelope and don't forget to label one, "Whoops!" For example, I will label an envelope with each person I will be buying for, ie parents, siblings, nieces and nephews, children, spouse...etc. Then, have envelopes for other smaller categories like neighbors/friends/coworkers. As for your "Whoops" envelope, that is a little extra for those people that you forgot!!
3) Divvy up the cash! After each person and category is determined, it is now time to divvy up the cash! Start deciding how much you will allot to each envelope and put that amount of money inside. Maybe $25 for your sister, $100 for your kid, $50 to buy for your neighbors and coworkers...and then whatever is left, stick it into your "Whoops" envelope!
4) Keep it organized: As the season progresses, you can write that person's wish list on the envelope, or print it out and stick it inside. Use each envelope to document what you bought the person so you don't panic when it is time to deliver them and forget what is wrapped in that box! You can also keep receipts inside each person's envelope for easy returns later on!! When each person's envelope is empty of cash, you are done shopping...no accidentally going over budget, and no worrying if you have shopped for everyone on your list!
5) Whoops! The "Whoops!" envelope is great for those people who show up at your house with a gift that you weren't expecting, or for that person who you totally forgot to buy for! I like to buy gift cards with my "Whoops" money and have them on hand to quickly stick in a card at the last moment, and voila, instant gift! PLUS, many restaurants give bonus cards or gifts for buying a certain amount of gift cards, so its an easy way to get a little kick back for your Christmas shopping :)
Other great tips for staying on budget:
- Talk about your goals for saving money over the holidays with your family and friends. You would be surprised how many people are in your same boat. They might actually be relieved that you just want to do it "low key" this year. Last year I hosted all of my extended family at my home for Christmas, and I suggested that everyone donate to their favorite charity or do some random act of kindness (doesn't need to cost money) and just share with everyone instead of exchanging gifts. It was so meaningful and we had a lot of fun just being together!
- Either avoid "Black Friday" or go with a VERY strict list! I have a love/hate relationship with this crazy holiday, but I know some people love it! Be sure to go into the store with an idea of what you want, and use your cash!! It can be a great way to stretch your gift buying dollars, but it is an equally great way of buying waaaaaaay too much stuff!
- Trade services with friends, neighbors, coworkers, and local family members. Offer as your gift a night of babysitting so they can head out. Offer to fix that laptop they desperately need repaired! Give your co-worker a "free pass" from kitchen duty in the break room! This is a great way to save a little cash, but the value of the gift is priceless!
- Make stuff! I know homemade gifts sometimes get a bad rap, but in certain situations, it might be really appreciated! I know one of my in-laws makes awesome blankets, bean bag chairs, and other kid items, so this year since I am buying my son a kitchen play set, I asked her to make him some of her sewn play food made out of felt. Saved her the money and hassle of getting her nephew a gift, and he will love it!!Or, if none of your family or friends appreciate that kind of stuff, make a whole bunch and sell it at one of the many Christmas Bazaars and use that money toward your budget!
- Prioritize. This is the most important, and easiest change to make. Really sit down and think about why you enjoy the holiday season so much. For me it is spending quality time with my family, playing in the snow, Christmas music, and drinking hot cocoa and looking at all of the lights. Get rid of some of those super time-consuming or expensive traditions you have that stress you out more than you enjoy, and replace them with more rewarding and personal memory-making events. I'm absolutely positive that in the long run, you will remember those quiet nights at home watching movies with your kids in front of the fire way more than running around all stressed out!
Let me know if any of you have any great money saving traditions or tips!!
Great ideas once again Sarah! After being inspired by Pinterest, Joe and I decided to go the home-made route this year. We started shopping for the things needed in October (just one or two small things here and there). Now we have almost everything needed purchased, and we just used a bit of "other" money each month, so we haven't spent a cent extra so far this year!
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