Debt-Free Holiday Shopping Budget Ideas

The joy of holiday giving can quickly drain when the credit card bills roll in at the start of the New Year. The best way to celebrate the holidays is to be debt-free, or at least avoid adding to your pile of debt.

Face facts. Being debt-free means living within your means, which means spending only money you have in cash. Sometimes we can’t always give everyone everything they want. Take a step back. Does a three-year-old REALLY need an iPod? The latest toy gadget is often next year’s garage sale item. Be realistic and remember the holidays are about giving from the heart, not the pocketbook.

The first thing to do is to determine how much money you will have. Second, make a list of the gifts you need to buy and determine the amount you can spend on each gift. There are easy ways to cut down on the number of gifts. Maybe it’s time to start drawing names or giving one gift for the whole family.

Some gifts can be made. Cookies with a canister of hot cocoa and an assortment of teas or a basket filled with bags of homemade caramel corn and a few DVDs are great gift ideas for families. A young couple with small children would appreciate a book filled with coupons for a monthly night of babysitting. Cost to you – paper and some time. Value to them – at least $250 in saved babysitting fees and evenings to look forward to all year long.

Not sure of what to get someone? Stay in your budget and get a gift card for your allotted amount. Let friends and family pick out their own gifts at a favorite restaurant or store. If finances are tight for you, times are probably tight for them too. A $10 Starbucks card may not seem like much, but if Starbucks is a treat for your recipient, a gift card is something they could use three or four times. A $25 gift card to a department store can go a long way if the teenager is a bargain hunter and cruises the clearance racks.

Gifts are only one type of holiday expense. Don’t forget about decorations. Determine what you really need. Do you have to have the lighted deer outside or can you skip it this year? Buy items on sale. The weekend of Thanksgiving has great sales. Check with family and friends to trade decorations for a year. It will be new to you and won’t cost a cent.

Planning a big celebration dinner? Prices are cheaper at Thanksgiving, so pick up two turkeys or hams then. Stock up on the stuffing fixings, cranberries and other baking items. Clip coupons to save more.

There’s more green or silver to the holidays than a Christmas tree or Menorah; there’s also money.