How to Plan a Gift Budget for Christmas
Christmas is just around the corner and that means you all need to start scrambling for decorations and gifts before the rush really goes full-force. In these trying times, with the economic crisis and all, it is difficult to find the balance between getting ready for Christmas and balancing our checkbooks. In order to have a peaceful Christmas without losing sleep over maxed out credit cards. Fortunately, there are ways you can prepare for these holiday expenses right now.
How Much Did You Spend Last Year
Take a look at last Christmas' bills. What were all the things you bought? Include what you spent on wrapping paper, cards, clothes, food, decorations, tree, etc.
Prepare A Budget
After going over last year's list of items that you had bought and how much they cost, you can start making an estimate of how much you may spend this year. The only thing is, you have to factor in inflation. Make a list of what you will need to buy this year. Start with the most essential items like food.
Look at that list and see if you can shorten it a bit. If you have Christmas lights on that list, see if you have last year's lights somewhere, you would do well to re-use them this year. Old decorations can be used again this year. Things like these can really bring down the list of expenses you will have this year.
Make a list of who you plan to give gifts to this year and what you intend to give as gifts. If you have no idea how much the gifts you intend to give cost this year, check them out on the internet or go to stores and check out the prices (don't buy anything while you're doing this). After you are through, check the total estimate. This will give you an idea how much you might be spending this year. If the estimate is something you can live with (and afford), then you will not have any problems as long as you do not spend more than the estimate.
If your estimate is more than you can afford, then you need to make some major adjustments. You can do one of two things; either you re-write your list by shortening it, or change the gift ideas in the list into something less expensive. If you can consider giving homemade gifts like homemade muffins or cookies or crafts, then it would definitely help you with your budget.
An important thing to note is that you need to ensure that you have enough in your savings to cover for your estimated expenses. It is extremely important that you avoid using your credit card to do your holiday shopping. Using credit cards will only put you in debt with card companies that will keep piling interest on the amount you charged.
If you do not enough cash, you need to decide whether you can shorten your list again. If you can't, then you may consider using your credit card for a small portion of the estimated expenses.
Stick To Your Budget
Now that you have a budget, the best way to make sure you stick to it is to start combing the stores now and looking at the various deals available. If there are items on your list that are available on sale, by all means buy it now. The best way to stick to a budget is to start buying the items on your list early so you will not be forced to buy more expensive items when the holiday rush peaks.
Stick to your budget. Do not stray from it. Christmas is about being with the people you love and not about spending more than you can afford. Love is always the most welcome gift and it won't cost you a penny.
About the Author:
Sarah writes for Late Late Gifts, a site that provides same day delivery and next day delivery for hundreds of special gifts.
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