Make a List and Check it Twice

The following is a guest post by my friend Toni Anderson who blogs at The Happy Housewife. She is a home schooling mom to six (almost seven) children, a military spouse, and a frugal fanatic. After her family became debt free last year she started her blog in hopes to help others reach the same goal.

Make a List and Check it Twice

Even Santa Claus knows the key to a frugal Christmas is making a list! Making a list is probably one of the most important tools in saving money this holiday season.

The first step to a frugal Christmas is to figure out how much money you have to spend.

Hopefully you have been putting away a little money every month in anticipation for the holidays. If you started at the beginning of the year you should have a nice Christmas fund built up. If not, see how much money you can squeeze out of the budget this month to buy presents, but do not buy your presents on credit!

Once you have a dollar amount, make a list of everyone you will be purchasing gifts for this month. Remember to include teachers, secret Santa gifts, babysitters, kids, spouses, parents, grandparents, and neighbors, whoever you buy something for needs to be on the list.

Assign a dollar amount to each person’s gift on the list. The total dollar amount cannot be more than the amount you have to spend. The goal is to have a zero balance at the bottom of your list.

After you have your dollar amounts, it’s time to go shopping. But before you head to the store do a little research. The internet is a great tool to compare prices. Almost every store publishes their ads online, and many online stores offer free shipping in December. A few resources for comparison-shopping are Price Grabber, and BizRate. Before you even leave your home you will know the best prices on every item on your list. There is also a service called Price Protectr that tracks your purchases and alerts you when the price on an item you have already purchased drops. Many stores have a price guarantee that allows you to bring your receipt to the store and receive the difference in price.

Having a price limit is a great way to control your spending. For many years I would head to the store with a list of names, but no dollar limit. I would walk the aisles aimlessly wondering what to purchase, and I would always spend too much. When you shop with a list, including price limits and specific gifts it is easy to stick to your spending plan.

Remember it is the spirit of giving that really matters. If your Christmas budget is tiny this year, it might be better to make a thoughtful card than to purchase something you bought just because it was 90% off the regular price. Gift giving is a little overrated anyway, what people cherish most is your friendship, your time, and attention.

Don’t forget to plan ahead for 2009. If your Christmas savings plan did not exist until November of this year, you can start fresh in a month. Open a separate Christmas savings account in January and put a little money away every month in 2009. Even if you saved just $25 a month you would have $400 by next December.

Remember if you don’t control your money it will control you! Make your plan, stick to it, and you will feel happier knowing all the presents under the tree are paid for!

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