12.12.08

Holiday Gift Giving: 7 Ways I Reduced My Spending by 50%!

Posted in Personal Finance at 11:20 pm by CreditMom

                                                          

I haven’t posted in a while -been too busy staring at my 401k statement and figuring out ways to save money on holiday presents while still keeping some joy in this difficult economic season.   Back in October I started planting the seed with the kids: it’s a bad economy, don’t expect a lot of gifts, it won’t be like last year and make sure when you make your holiday list you put a lot of thought into it - just list a couple of things that you really want more than anything else.

Oh sure!  Well, they started off in earnest, scratching their heads, thinking about their wants and needs (do they really “need” anything???) and came up with about 4 things on their list.  Ok, not a bad start.  We can manage that down a bit.

So they posted their wish lists on the refrigerator (just in case we forget) and little by little they started to grow.  In fact, one son had to re-write his onto a larger sheet of paper - another one just neatly arranged additional post it notes in a straight row.  Little do they all know our holiday shopping has been completed and they didn’t get any where near what they asked for - but let them dream - it’s a good lesson for them.

Now that we are finished (and yes it is so tempting to take advantage of the recent holiday sales but I have been physically restraining myself), I’ll share for you how we we were able to save 50% vs. last year’s holiday spending!!!!  This is how we did it:

1. Made a List and Stuck to the Budget- Every year I make a list on an excel spreadsheet (this is how I know I’m down 50% in spending year over year).  I have a column for names, gift description and cost.  Every year I set a budget and every year I am wildly over the budget.  This year was different in that I stuck to my budget and designated various gifts to family members since they would be buying something for the kids any way.
2. Level Set the Kid’s Expectations - The kids don’t know this yet but we held to our word on their gift limits.  We explained this is not a punishment - it’s just a tightening of our belts during a rough economy and every one needs to pitch in.  Of course, this doesn’t make them happy but we’re all in it together.  It’s not the time for indulgence right now especially when there are plenty of people out there that don’t even have a home.
3. Eliminated holiday cards - We regularly keep in touch with the people we want in our lives through email and Facebook. There is no need for an annual card just to say hello.  And those photo cards - don’t you feel guilty throwing them in the trash on January 1!!??
4. No TV’s, electronics, etc. - My kids will love this one, but the bottom line is they already watch too much TV.  The twins lost their TV 18 months ago for bad behavior and still haven’t earned the right to have one in their room again, and last I looked the old TV’s worked just fine and a book is also a great means of entertainment.
5. No Gifts for Adults- The holidays have become a major spending obligation and we all just agreed there’s no need for the expense and added shopping stress.
6. Shopped Online - When I shop online I am less impulsive than in the store.  Forget about saving money in gas.  That is nothing compared to the damage I can create when I’m in a store.  So, I purchased everything online.  No impulse buying, you get what you want when you want it (because you know you’ll find it somewhere), there are loads of free shipping deals out there and no trampling at Walmart - what could be better?  That comes next….
7. No Credit!! - This year we managed to do all our shopping without using credit cards.  How did we do it?  By sticking to a TIGHT BUDGET.  Yes we use debit but that of course requires us to have the money in the bank as I repeatedly tell our kids.  So in January, I won’t be paying for December’s presents - nor will I be paying for them in June or even the year after! 

By sticking to a plan, assessing wants and needs, cutting back areas of waste and eliminating credit cards, we’ll actually survive this holiday season without feeling like we’ll be paying it off for 6 months!  Plus we’re taking a big step to wean our kids off the indulgences we admittedly afforded them in the past and shifting their focus to giving to those less fortunate.

Have you cut back this year?  Are you using credit or are you paying cash?  What are some of your tips for saving money this holiday season?

 

 

 

 

 

 

 

 

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