our christmas budget

My husband and I scraped together Christmas for quite a few years. Some years were lean and some years were bountiful, but the common denominator was always lack of planning. As we are learning better ways to handle our money, an area that has been transformed is Christmas spending. 

Have you ever felt like you are flying by the seat of your pants during the holiday season? Hoping and wishing that money would just appear somehow? Well, I have. And I must say, that during one of my favorite times of the year when I wish to focus on family and friends, and share a little extra love, the last thing I want to be is burdened by stress and money worries. 

Something simple that has helped us transform our Christmas spending has been implementing a simple savings plan ALL YEAR.

1. Save a little every month, all year.

We sat down and decided how much money we wanted to spend at Christmas. Then we divided it by 12. That much money gets put into our fund every month, starting in January. You can put cash in a jar or envelope, or you can designate a fund in your bank account. By the time November and December roll around, we have a fully funded holiday! 

I like to start planning in November so that I have lots of time to shop and organize without stressing out. I find it very enjoyable when I give myself plenty of time.

2. Spend with cash envelopes.

We set amounts for each category, using cash and envelopes for each. If you have saved cash, you may have to go to the bank and exchange your bills for the denominations you need to stuff the envelopes. If you have saved in your account, you can just request whatever bills you need when you make your withdrawal. I write the person's name and amount to spend on each envelope. This may seem a bit tedious, and it is a little. But I have learned that putting in some extra planning and effort up front makes life much easier later on. 

Here are a few of my categories:

Charitable giving
Baking/special meals
Fun/outings
Cards and postage
Gift wrapping
Gifts for friends and family
Gifts for husband, daughter and myself

Each person you are buying for gets their own envelope and set amount. My husband, daughter and I even get an envelope! We set an amount to spend on each other and then there are firm boundaries so we don't overspend. 

Also, there is no guilt in spending when you are following a well thought out plan.

No guilt!

Having our Christmas spending under control greatly changed my experience during this time of year. I have much more room for thankfulness, charity, joy and cheerfulness when I don't set myself up for discouragement and bitterness, and make room for guilt. 

I love what Dave Ramsey says, "Adults make a plan and stick to it. Children do what feels good."