Can you do Christmas on $500?
As of today, there are only 19 sleeps until Christmas. That dreaded day of splurging in the hope of keeping everybody happy - especially your credit card provider - seems to turn up quicker every year.
Well...you knew it was coming. What have you done to prepare yourself for the shopping onslaught?
If you're like 43% of the population you will leave your Christmas shopping until the last week. That means, you will be fighting with 1 out of every 2 people in your city for parking spots, the last turkey, limited gift choices and more importantly your budget will have flown like the proverbial migrating birds.
As real estate's mantra is Location, Location, and Location - Christmas' spiel is Preparation, Preparation, and Preparation.
Here are the key expense components of Christmas;
- Gifts
- Food and Drink
- Decorations
Now, let's create a budget for them.
Firstly, come up with a total amount that you're happy to spend (remembering that it's only 1 day of the year and 364 more will follow it).
Step 1
As an example, let's assume we're working with $500. First, divide this amount amongst the three expense areas.
- Gifts - $340
- Food and Drink - $120
- Decorations - $40
Step 2
Next, break the gift area into people you would like to buy presents for (or at least feel compelled to buy for). This may look like this;
- Spouse - $80
- Child #1 - $40
- Child #2 - $40
- Child #3 - $40
- Child #4 - $40
- Parents - $30
- In-Laws - $30
- Relatives - $40
You can probably tell at this stage that you're not going to be able to buy a Sony Playstation for each of your children. However, remembering that it's a token of your love and appreciation for that person you will now have to source items that fit within your budget - not make your budget fit within your overzealous gift giving.
Be creative. Make some of your gifts or take the time to source presents that say more than "I'm expensive."
Step 3
After you've bought the gifts the next item on the agenda is the festive decorations. These don't have to be extravagant. They only stay up for a couple of days anyway.
Find some cheap crafty projects that you and your family can do together. It 'kills two birds with one stone'. First, you can save money producing cheap Christmas ornaments and second it gives the family a chance to bond and work on a project together.
Step 4
The Christmas meal. Food and drink can always end up costing more than you expected so plan to cater well. If you're hosting the Christmas dinner ask your guests to pitch in and bring a plate to share. Don't be pushed into buying a whole turkey or Christmas ham as you won't have much left in your food budget.
Most foods that we enjoy at Christmas can easily be made a week or two in advance. White Christmas slice, cookies, homemade ice-cream cassata, frozen fruit rings for the punch bowl etc.
The food component can be as expensive or frugal as we choose to make it. So opt for a limited budget and work to stay within it.
If you prepare yourself well for Christmas the experience of not paying your credit card back in March will far outweigh the inconvenience. Have a Merry Christmas!
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