Have Yourself a Merry Little Christmas Without Going into Debt

The Christmas season is supposed to be a time of joy, happiness and celebration but for many people it is filled will stress and anxiety. Overspending on gifts for too many people, spending large amounts of money on entertaining and feeling you need to send out Christmas cards to everyone you know can wear your finances down. Here are some ways to watch your money and still enjoy the holidays.

Gifts

Spending large amounts of money each year and finding yourself in debt in January is one of the biggest stress inducers of the holidays. The bigger and more expensive the gift, the happier the recipient will be, right? Wrong. Make a pact with yourself that you will buy only what you can afford. Here are some tips on how to do this.
• Talk with family and friends ahead of time about money limits on gifts and stick to them. Even if another family member goes over the agreed upon amount don't feel you have to. Everyone else will feel more comfortable if you stick to the limit so they can too.
• If you are in the habit of giving separate gifts to your parents, your siblings, their spouses and your nieces and nephews it may be time to suggest drawing names. The children can draw names in one group and the adults can do the same with each other. This way you will taper down your Christmas gift list by several people but everyone will still receive a gift from a family member
• Scrutinize your gift list and decide who you really have to give gifts to. Do you really need to buy a gift for each of your children's teachers? Is it necessary to give the paperboy or mailman a tip? Wouldn't a nice card suffice? While we all want to be generous and give to everyone it isn't feasible if you have to go into debt to do so.
• Make gifts for those few co-workers or friends that you do exchange with. A pretty jar filled with homemade cookies, a hand sewn stocking filled with their favorite candy or a handmade tree ornament can be nice gifts that actually mean something. The gift doesn't have to be elaborate, just something pretty made by you.
• Gift exchanges for your children at their various clubs, schools and sports can become expensive if you don't watch what you are spending. Stick to the dollar limit that is set. Have your child find out what interests the child has so you can tailor the gift and make it more personal. You can try finding nice gifts for kids at your local dollar store or discount store. Journals, special pens, photo albums, funny socks and baseball caps all make good gifts for young children without breaking the bank.

Entertaining

If you find you are the one who usually hosts the get-togethers with friends and family each year you may want to try a few of the following tips to pare down expenses.

• If you are having a get-together with your family or friends suggest that each person bring a favorite dish and drink to share with others. Delegate who will bring main meal dishes and who will bring desserts so you end up with enough of everything you need. Most people actually enjoy participating in preparing the meal and there will be a great variety for everyone.
• Don't spend a lot of money on decorating for a party. A decorative table cloth and a few well-placed candles are all you really need to make a room feel warm and inviting. Contrary to what the advertisers say guests don't appreciate the many festive decorations as much as they do making memories with family and friends.
• If you are the guest be sure to ask your family member or friend what you can bring to help. Don't forget that they are probably trying to watch their budget too so offer to bring something to help add in the celebration.

Christmas cards & packages

It seems that each year the Christmas card list grows and with the cost of postage and cards you may be spending much more money than you realize. Sending gift packages long distance to friends and family can also be costly. You may want to consider some of these options instead.

• This year pare down your Christmas card list to only those friends and family members that you rarely see. Personally hand out cards to co-workers, friends and family that you see regularly. You will save a lot on postage this way.
• Scrutinize your card list carefully. If you continue to send your old high-school friend a card every year but never receive one in return it may be time to take this person off the list. Keep track of the people who send you cards each year and start taking the ones who don't send cards off of your list. In the end this will save you both time and money.
• If you send gifts to faraway friends and relatives it can cost you a lot in postage. You may want to consider sending them gift cards instead for their favorite stores. Or if you do a lot of internet shopping you can have the items wrapped and shipped directly to them and save the extra postage of sending it out yourself.

Christmas should be a time of fun and celebration and not a time to stress out about your finances. By following some or all of these ideas you are sure to stay on budget and have a much happier Christmas.