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6/26/2008
The Bottom Line
By Susan L. Smith,
Director of Training & Financial Education
Christmas in July
Last November I told you that next year we would get started earlier on our holiday shopping so you wouldn't be in a money crunch in December. In case you missed that article, check it out in The Bottom Line December 2007 issue "Financial Survival of the Holidays".
That time is here. We have July, August, September, October and November to get ready. Not December. December is set aside for special things.
Let's take inventory. First prioritize your list:
Family and special friends.
You plan for this group. You search for the perfect gift. It takes soul-searching and creativity. It doesn't have to be expensive, but it has to
be special.
Friends and co-workers.
Less expensive but creative. Takes a lot of thought and searching.
Casual friends and neighbors.
Inexpensive gifts that say 'I thought of you' but does not obligate them to return the favor.
Now for the hard part. How much can you afford to spend on each person? That requires a look at your budget. CCCS counselors are good for this part. Our counselors are certified and experienced in developing budgets. A quick phone call to 800-249-2227 will get you started. But for now, let's go back to dividing our money into categories.
Rent/Mortgage 25%
Utilities 10%
Insurance 4%
Debt (secured/unsecured) 18% (vehicle/loans/credit cards)
Child Care 12%
Transportation 9% (gasoline/maintenance/tolls)
Food 12%
Miscellaneous* 10%(medical/clothing/savings/contributions, gifts, entertainment.)
This chart represents 100% of your useable income. The point is to calculate your spending and make the appropriate adjustments. For instance, you may not have child care but your rent is 30% of monthly take home pay (net). Move the percentages around to represent your budget. After you customize the chart, you will know how much money you have each month to spend on gifts.
Just remember, it's not how much you want to spend, it is how much you have to spend. If you decide to splurge on a special gift, you have to reduce somewhere else.
Let's get started. One of my favorites is making strawberry preserves and freezing them in individual 4oz jars until I need them. I use decorative lids and add card and ribbons when I give them away. Berries are inexpensive right now and a good time to stock up. If you are talented in needlework, you have plenty of time to complete a few projects. August is usually the month bedding and linens go on sale so cute pillows or towel sets would be inexpensive. You have time to visit thrift shops, garage sales and church fairs to collect items for theme baskets. But, if all you want to do is purchase a gift, now is the time to start. Buy one or two gifts per month and store them away.
Now for December. Since all your shopping is out of the way, you will have time and money to do those little special things you think of at the last minute. You might even have time for yourself. What a novel thought.
Happy shopping.
Susan L. Smith, Director of Training & Financial Education of Consumer Credit Counseling Service of Greater Dallas. You may email her at TheBottomLine@cccs.net.
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