We are spending less on Christmas this year because we want to save more, spend less, and work on paying off the house. It all comes down to what means more to us. Spending aimlessly for one-day buying stuff we don’t really need. Just to try to figure this all out once the bills arrive come January. So, we set a $400 Christmas Budget | 8 simple steps on how we’re spending less on Christmas. However, we are not alone.
Spending with Our $400 Christmas Budget | 8 simple steps on how we’re spending less on Christmas!
Christmas 2020 gift-giving plans are down from 2019. Americans are planning to only spend on average $851 for holiday gifts down from $976 per the 36th annual survey on holiday spending from the American Research Group, Inc. Not as low as we are going but still down by $125. Our $400 Christmas budget will take all of our 8 simple steps on how we’re spending less for Christmas.
Our plans are to spend significantly less than the $1000+ per the last few years. In the past, our holiday club savings funded the majority of our Christmas gifts. Christmas Club Accounts use to be very popular back in the day. However, for the past few years, we have just set up regular savings accounts and called it a Christmas Savings Account.
My husband and I would spend a little more out of pocket for that special Must-Have-Or-I-Will-Die Christmas gift for the children and/or each other. However, the kids have all grown up and cash is king with them. Hence, we transformed our holiday club savings into luxury vacation savings. Today, we purchase mainly needs or give cash. However, with the times being what they are we are scaling back and again opting for a debt-free Christmas. Paying for our purchase with cash on hand prior to January. Using our $400 Christmas budget and 8 Simple Steps on how we’re spending less on Christmas!
Here is Our $400 Christmas Budget | 8 simple steps on how we’re spending less on Christmas.
1. Start With A Budget
We decided to set a $400 limit on our Christmas budget. We asked each other what we needed and/or wanted for Christmas within a $50 parameter. To spend more, you could ask everyone to pool their $50 together. Since I did all the shopping this was easy to organize. Once you have the budget set for your family, you then have to decide on who is on the gift list. Our $400 Christmas budget will take all of our 8 simple steps on how we’re spending less for Christmas.
2. Decide on the Giftees
Decide who should be on your list starting with family members first and then working your way down to additional family and friends. Ours consisted of the three people inside the home and a few people outside the home. See template to use for your family and friends. Do not feel guilty about not being able to splurge on everyone. This is not what Christmas is all about. Some handmade gifts, a call, or a card may simply be enough.
3. Set Spending Limits For Each Gift Per Person
Once you have decided who is on your list decide how much you want to spend on each additional person. Once you have reached the budgeted amount you are done. Fight the urge to spend more or add additional people. You may even have to eliminate people if you have reached your max budget.
4. Stick to Your Budget No Matter What is on Sale
You may feel the need to spend more if you see something on sale. Remember if it takes you above your budget it is not on sale for you. However, if the desired item is on sale you have more to spend on another. If the savings is great you may be able to add someone back to your list. Hence, you may be able to get a two-for-one gift opportunity.
5. Use Cash If Possible
I am not a cash-carrying chick so this does not work for me. I use my credit cards with discipline. Since I pay my credit cards off each month my budget is set and I will not go into savings to pay the difference. Therefore, I will not overcharge what I cannot afford to pay out of our checking accounts. Download my Christmas Gift template to help you keep track.
6. Stick with Your Budget
No matter how hard it can be when you see an item you feel is perfect but it is outside of your budget. Don’t break ranks. You can do this. There is no need to try to find funds for a gift that pulled at your heartstrings.
7. Start a Christmas Savings Plan Today
Christmas comes at the same time every year. Why not spend the entire year saving for this one special day. Setting aside $20 each week adds up to $1,040 plus interest. $40 each week adds up to $2,080 plus interest. And so on and so on. It is easier to save a few bucks a week than to try paying $35 per month with interest for more than half the year. Set it up today with auto drafts from your checking to your Christmas Savings account. Or you can set up a true Christmas club account with a local credit union. Here are the 5 best Christmas Club accounts.
8. Have Fun and Enjoy the holidays
The best present you can give yourself is to spend time with your family and loved ones. It does not cost a cent but provides immeasurable joy. Merry Christmas!
Make this your $400 Christmas Budget | 8 simple steps on how we’re spending less on Christmas!
Christmas Giving should not be the gift that keeps on giving. Come January you will be happy that you do not have the gift of months of minimum payments to look forward to each month. Make this your $400 Christmas Budget using these 8 Simple Steps on How We’re Spending Less On Christmas! You will feel better going into the New Year without Christmas debt.
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