It’s that time of year again. Time when most people start whipping out the plastic in order to purchase gifts that are on someone’s wish-list because we know that they’re going to get something for us.
Call me cynical, but the Christmas season has become a lot less about The Gift and more about a gift.
Gifts for Gifts Sake
- How many of us buy gifts for someone because we know they’re going to get us something?
- How many of us don’t know what to get someone, but we’re going to get something for them anyway?
I found my hand going up both times. Well, that is, if I weren’t typing. Ok, ok, I’ll raise my hand. There, you happy?
The truth is that we are a giving people that have been very blessed. We want to share, and we don’t want to go to someone empty handed. Getting that out of the way, there is no reason that you should go into debt this Christmas.
The Christmas Budget
The first thing to do is to sit down and come up with a Christmas budget—planning who you’re going to buy for an how much you are going to spend. Making decisions like this just after Christmas is the best.
Why do I say this? Because as you’re staring at that credit card statement or that list of receipts is the best time to make a plan for next time because you’ll have felt the pain and are ready to make the changes necessary.
How do you go about making one? Bob at Christian Personal Finance has a great post on How To Set Your Christmas Budget that I’d have a hard time improving on.
The point is that you need to have a plan if you’re going to survive—or even thrive.
Christmas—Debt Free
The trick to this one is having a good plan. If you have a budget, you can then prepare for the next Christmas season by saving money each month. Have it taken right out of your paycheck (set up your direct deposit to send the money to a different account just like your 401k—call it a 401C if you get creative!).
The next step is to commit to following your budget. So when the shopping season comes around realize that you can only spend what you’ve allotted. You can even get it out in cash and spend it at a single mall if you’re so inclined.
Limit Your Options
One of the biggest problems of Christmas—one we’re currently going through—is that there are so many things to choose from, and we have no idea how they would be perceived. By having so many options available, it’s harder to make a choice.
So I would say that you should limit yourself to a mall, or a store, or an online store when it comes to an individual—and always pack a gift receipt.
I’d also consider making something or preparing something with a personal touch where appropriate.
What are some of the ideas you have to beat the Christmas Debt trap?
I decided this year we are not going to go into debt for Christmas gifts. We are putting a limit on gifts for the kids.
Every pay day I go and purchase a gift, pay cash, and move on.
I am not going to go all out and give gifts to all of friends, that is for birthdays.
.-= Leticia´s last blog ..The Lonesome Prairie ..Montana blog tour =-.
Posted by Leticia | November 23, 2009, 5:47 pmAnd then there’s my family– we’re expecting a new baby coming up within the next few weeks, and there’s already three members of the family that have birthdays in Dec/Jan. The nice thing is that it’s over all at once!
Posted by MInTheGap | November 24, 2009, 9:34 amMIN, great article – I am so glad that we finally figured out how to avoid the debt-trap during CHristmas – it makes January so much more peaceful!
Posted by ChristianPF | November 27, 2009, 11:58 amThe personal touch you mention is great. I find the commercialization and obligation many feel about it sad. I have, for years, told people not to get me presents. They are nice for kids or for some special occasion but for adults most of the time they are just spending without and real value.
I realize our society places peer pressure on participating in spending on the holidays. People shouldn’t participate just because they are scared of a bit of peer pressure. Giving to charity is much preferred in my book to buying presents for some adult that already can buy more for themselves than 95% of the world can even think of dreaming about. Show people you care for them without spending money on them.
Now I imagine some people won’t like this. They are, of course, free to spend their money how they want. I just have my opinions on the way we go about giving. I save money this way but give much more to charity then I would ever give as presents so it is not a case of me just wanted to keep my money.
.-= John @ Curious Cat Investing and Economics Blog´s last blog ..Dollar Decline Due to Government Debt or Total Debt? =-.
Posted by John @ Curious Cat Investing and Economics Blog | November 29, 2009, 7:17 pm