Beating Broke

Personal Finance from the Broke Perspective

How I Plan to Have a Low-Cost Christmas

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Every year, more Christmas expenses seem to crop up than I have budgeted for.  Typically, our budget can handle the extra strain, but this year is different.  This year, our central air conditioner unit needed to be replaced, and we’re on a mission to pay off the loan as soon as possible.  That means this Christmas I have to be smarter with my spending, and I have to spend less than I usually do.

I have a plan to reduce my Christmas expenses without skimping on my kids’ gifts, but to be successful, I have already started my holiday shopping even though Christmas is months away.  Here’s my plan:

low-cost Christmas
Plan a low-cost Christmas

Take advantage of coupons.  I am on several e-mail lists for different stores.  This weekend, Michael’s sent out a coupon for 70% off one regular price item.  I will be going to Michael’s and using this coupon to purchase a Christmas gift that I’ll tuck away.  Any time from now until Christmas that I see high value coupons, I’ll take advantage of them to buy a Christmas present at a fraction of the cost.

I’m making some gifts.  Last year, when fleece was on clearance after Christmas, I bought some to make blankets for each of my kids.  I have made one blanket, and I’ll be making two more in the next few weeks.  These will be one of their presents.  I also plan to make some doll accessories for my daughters with fabric I already have in the closet.

I’m saving credit card rewards.  Starting in August, I let my credit card rewards accrue.  Right now, I have enough for $50 cash.  By the end of next month, I will have enough for $100 cash.  By Christmas, I hope to have $150 cash.  I’ll save that money and use it in December, especially close to Christmas when retailers discount products that they’d like to sell for the holiday.

Entering giveaways.  When I have time, I’m entering giveaways for prizes my kids would like for Christmas.  I’m not really banking on this strategy, but if I do win, that helps me round out my Christmas stash.  Last year I won a game for one of my children, and a craft set for another.

Using Swagbucks.  If you are a member of Swagbucks and you sign up for all of the different programs and offers, you can accumulate Swagbucks quickly.  However, I just use Swagbucks for Internet searches and answering the daily poll and getting secret codes, so I earn a bit more slowly.  Still, I expect to have enough Swagbucks to redeem for $50 in Amazon gift cards by Christmas.

If you plan to use this strategy, you’ll need to strategize because you can only get one gift card per month.  You’ll have to plan ahead and cash out month-by-month so you’ll be able to access your points.

What strategies do you use to save money on holiday gifts?  Do you also start buying Christmas presents in the fall to save money?

Yearly Bonus on the Way

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Yay!  The yearly performance bonus that my company gives out is coming on Monday!

The bonus is based on a set of goals for the company.  If the company reaches all of the goals, then we get 100% of the bonus.  Each goal is set a little differently, so one might only count for 10% and another for 50%.  In any case, we got the whole 100% of the bonus. The whole bonus means that I’ll be getting my regular paycheck on Monday along with the bonus check for 100 hours.  It’ll be a tish more than what my regular check is.  Basically, an extra paycheck this month.

My wife and I have been debating what to do with the money.  Of course, due to the timing of the bonus, the idea of being a little more generous during the holiday season always comes up, but we’ve luckily talked most of our family and friends into spending limits so that’s out.  Most likely (we haven’t decided entirely) we’ll use most of the bonus for paying off debt.  We’ve got one credit card that would almost be taken care of by the bonus, so it’ll be getting a check soon too.  I think we’ll save a bit of it aside for some home improvements that we’ve got planned as well.

What about you?  Did you get your bonus this year or did the economy ruin it for you?  If you did get it, how do you plan on using it? Or, how does the lack of your bonus affect your budget?

Almost Time for a Winter Financial Checkup

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What’s a Winter Financial Checkup, you ask?

Winter, and more specifically, the time around the holidays is when most people have the most problems with their finances.  Gift purchases throw off their budgets.  Bonuses give them a unexpected bit of cash and they spend more than they expected.

Whatever the case may be, your financial picture might end up looking more like a Picasso than a portrait of your true financial life.  And your budget might be way off.  It happens.

The holiday season is one of the hardest to budget for.  Between all the gifts and trips that we all buy and make, it’s easy to lose track of where some of our money went or to over spend in a few categories.  But, keeping tabs on our budget is also one of the most important things we can do during the holiday season.

Performing a Winter Financial Checkup

A winter financial checkup isn’t really as special as I’ve made it sound.  It’s mostly just your regular budgeting session but with some special attention spent on predicting some of the extra expenditures.  And if you’re lucky enough, some extra incomes as well.

You’ll want to ask yourself, first, if you’re expecting any extra income.  Usually, this means a yearly bonus or a Christmas bonus.  If you are, now is a great time to plan for that extra income and budget it in.  Extra income is exactly that.  Extra.  It’s unplanned for up until now.  If you are still paying off your debt, I suggest you plan on using at least 50% of any expected bonus for debt repayment.  You’ll have some pangs of regret for things you could have bought, but in the long run, you’ll thank yourself.  The other 50% should go towards your gift purchases and towards any traveling that you are planning.

You’ll also want to take the time to truly plan your gift giving.  It’s a part of holding yourself to a budget.  I guarantee that if you walk into a store to buy gifts without a list or a set spending limit on each person, you will overspend.  Everybody does it.  It’s the spirit of the season.  Generosity is in the air, but you can still be generous without breaking your budget.  Make a list of all the people you intend to buy gifts for.  If you have any ideas for them, make sure you add those to the list.  Now, beside each name, write down the amount that you will spend on that person’s gift.  They don’t all have to be the same.  Your sister might like her $25 scrap-booking kit just as much as your brother likes his $50 tackle box.  It’s the thought that counts.  And if they do care, then you spent more on them than they deserve.

The main reason for a winter financial checkup is to keep control.  That’s what a budget is all about and that’s what will keep your spending in line and your debt shrinking.  Take the time the next time you check your finances to do a little bit extra and give yourself a winter financial checkup.