How to Celebrate the Christmas Holidays on a Budget

The upcoming holidays can be expensive for most people. But if you're on a strict budget, it's especially challenging to celebrate the holidays without feeling anxious because you fear going into debt. With a little creativity and common sense, you can enjoy the Christmas holidays and still rest assured you haven't overspent.

First, determine a budget. For example, what do you plan to spend on gifts? Decorating? Food? Cards? By setting a dollar limit for each category, you won't be as prone to overspend.

*Decorating---Holiday decorating is one area where things can get out of hand if you're not careful. First, decide what's important and what's night. Let's face it---you don't have to win your city or neighborhood award for the best lit or decorated house. By limiting yourself to only a string of lights, you'll feel better when your credit card bills come in the mail in January.
Christmas trees---If you have children, of course you'll want a Christmas tree. Again, use moderation. To save money, year after year, I'd suggest an artificial tree that you can find on sale. However, if you live in a state like Connecticut (where Christmas trees are grown year round) it may be more economical to buy a $25 tree. However, if you're really strapped for money and childless, then it's better to celebrate Christmas without buying a tree. After all, it's the true spiritual meaning of the holidays that you want to place your focus, anyway.

*Gifts---If you have a big extended family, complete with lots of siblings, aunts, and uncles, why not suggest you draw names? Chances are some other people in your family will welcome the idea as they, too, probably worry about affording gifts for too many family members. If you have children under 2, realize that you can get away with cheaper presents. I never will forget the Christmas that my one-year-old was more fascinated with the boxes than the actual toys that "Santa" left under the tree. And, if you have trouble paying off your credit cards, I'd suggest only paying cash for gifts. Another idea is to give of time, rather than a physical gift. For example, instead of paying for a gift, give a signed certificate to your elderly or home-bound relative that you're volunteering your time to clean their house, drive them where they want to go, etc.
As for name tags, save leftover wrapping paper and cards, making your own. For wrapping paper, use comic paper or tissue paper, decorated with your artwork. In reality, most people don't care how their gifts are wrapped.

*Cards---Look for discounted sets of cards. And, don't be afraid to cut back on your list. On the other hand, call people and wish them a merry Christmas rather than sending cards. If you have unlimited long distance on your long distance plan, this is especially a good idea. With the rising cost of postage, it makes sense not to spend a lot of money on sending cards. What's more, people would much rather have personal phone calls from you than a cards.

*Food---You don't have to have a banquet to enjoy Christmas. You can still have a good meal without spending a lot of money. Besides feeling better about your bills in January, you'll also be less intimidated about stepping on the scale next month. And, as for holiday cookies, shop at discount stores as it's cheaper than making them.

Finally, focus on the true meaning of Christmas---the spirituality of the season, as well as family and friends. By remembering to put your emphasis on what's important---faith and family---you'll have an even more blessed holiday, as well as learn to discipline yourself with your finances.