So it’s down to holiday crunch time people–only 7 days until the Big Day! If you’re trying to live on less, I just wanted to give you a little reminder to be careful this week.
This time of year it is especially important to review your financial goals and set a strict limit on your spending. With all of the excitement of the holidays and the desire to make our friends and family feel loved, we can spend more money than we can really afford.
I experienced this very problem last week. I found an idea on Pinterest and decided to actually do it instead of just pinning it. 
I went into the craft store armed with my 40% off coupon and started gathering the materials. As I looked at all the options, my idea morphed into something more extravagant, and my total morphed into $20 more than I had planned to spend.
I justified my spending because I want to make the gift nicer for the recipient, but the fact is that the $20 extra that I spent has to come from another budget category and spending it prevents us from meeting our financial goals (like saving for a needed car repair). I plan to be a little more prepared next time I go to the craft store and have my budget firmly established in my mind and the cash in a separate envelope.
It’s one thing to have a holiday budget, but the important thing is actually sticking to it so that you can use your money to fulfill your true goals, rather than wasting it on impulse purchases.
Do you find it difficult to stick to a holiday budget? Leave a comment.
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{ 14 comments… read them below or add one }
You are so right, it is just so easy to overspend at the craft store!
The only thing I really have left to buy are some additional stocking stuffers. This is an area where I am very apt to blow my budget. I’ve done well on the gifts – stayed on budget, but the ‘little’ things I stick in the stockings can really add up, and I have trouble stopping myself. With older kids, especially, I struggle with finding inexpensive items, and end up with $10 gift cards. Have to watch that!
I know what you mean. I try to look for stocking stuffers throughout the year to avoid the gift card problem.
Stocking stuffers can add up so fast! It sure is hard to find things that are inexpensive for older kids! I do find that if you have a girl, you can add small craft items to make their own jewelry etc, but that can be expensive if you are not careful.
what’s a budget?
Haha!
We never really kept a budget, which is weird because my husband is so detail-oriented. =) However, this month we created a new savings account dedicated to Christmas presents. We have a set amount going into it every week, transferred from our checking accounts. Then come November, we’ll have a nice amount saved up for Christmas, and can only use that amount. This way is nice, because automatic transfers means we don’t even think about the money going out, so it’s like we never even had it. You just have to make sure you have enough money in your checking account to go out! =)
Sounds like a good plan to me Jaime!
I have to check myself because I compare what we can afford to what both my parents and my in-laws are able to spend. Sometimes I end up spending more or adding to many extras to make myself feel better. This year I have been trying to remember the old saying that it is the thought that counts because we are definitely on a budget with a new baby!
I saw someone mention about feeling the need/desire to compete with family who can afford more: this year, I have decided to embrace this!! and use it to my advantage! That sounds bad but it’s not. For example, my 5 year old has asked for only one thing from the beginning, a Baby Alive doll that costs $45 at the local Walmart! …but unfortunately, the beginning was after I had already purchased all of her gifts from us!! What do ya do? $45 is too much for us to overspend for one child. So, when the uncle emailed asking about what our kids wanted, I went ahead and mentioned this doll. I let them know the cost and that is was absolutely NOT expected. Guess who got her the doll? Yup. That’s what I mean…when I know I have a child who is really hoping for something, I am trying to utilize the relatives who want to do something for our kids.
I’m done purchasing large gifts for my kids. I do need a few stocking stuffers which will be purchased on friday after we get paid. This year has been tight! It will be a no gifts for the parents year
but that’s ok. Just want to be able to provide something for my kiddos.
I’m going to buy some stocking stuffers out of the grocery money by getting one dollar big candy bars, shampoo, and toothbrushes. I’ve already spent the Christmas money in the “freedom” account.
Sounds like a good plan Beth–way to go for “finding” the money rather than going into debt!
Thankfully, this year we were able to stay within our budget. It was tight, and I had to be creative, but we did it! None of our gifts to others or each other are extravagant, many are homemade. I love making gifts for people! We aren’t doing stocking stuffers for each other this year. Our budget for each other was $100 total (we didn’t really divide it evenly; it was more 70/30), so we’d much rather spend that on bigger gifts than dividing it up for stocking stuffers. So, we’re going to do stocking stuffers for Valentines Day
Merry Christmas!
Good for you Lori Lynn! We actually went over budget, but we received some unexpected money so it worked out. I love your Valentine’s Day idea.