Affording Christmas Part II

This is a tough year for many people, especially considering the holiday season is approaching and many of us are wondering how we can afford to do what we want to do for our loved ones and our communities. A few years ago my husband and I decided that we wanted to be able to relax financially during the holidays, and our first step was to create a Christmas savings account.

Did your Grandmother have one of those "Christmas Club" accounts? Mine did. I remember riding to the bank in her car when she made her deposits, and she explained to me what she was doing. She put a little in each month, and then she would withdraw the money in November or December to use for her Christmas shopping. When my DH and I sat down to discuss our strategy, this idea immediately came to mind. We decided to deposit a set amount immediately each month into a separate savings account that would only be used for holiday expenses. By using a traditional savings account we were able to withdraw anytime we wanted during the year instead of waiting until the crazy shopping days just before Christmas. This enabled me to attend the ornament premiers in July (yes, I am one of those people) and catch discounts and other promotions when they happened. After our first year we decided to also include travel expenses in our savings, so we slightly increased the amount we deposited monthly so there would be no year end surprises with airfare.

Once we know our lump-sum for the year, I create a spreadsheet (a pencil and paper list would be fine, too--I just find I work better if I feel I'm being technical). I make a list of all of the people to whom we will be giving gifts, and I also include things like Christmas Cards, stamps, gift exchanges for work, baking and cooking costs, decorations, unexpected expenses, etc. I divvy up our total amount available and record any gifts or other items we buy. As long as our total costs are less than or equal to our budgeted costs, we're doing pretty well!

Are you unable to divert part of your income to a savings account for the holidays? Here's a tip: Use coupons, but instead of handing them to the cashier take a walk to customer service. They will give you cash back for your coupons. Take that cash and stash it away until you can deposit it.

I realize that I'm publishing this on Black Friday, and many of you could have used this information a long time ago. Just read it today and bookmark it for January 1st! Also, check out last week's post on ways to afford Christmas right now (some of the strategies would be great for padding your savings account, too).

Affording Christmas Part I: Finding Money

I love Christmas. I turn into a giggling freak this time each year. I love the atmosphere, the music, the camaraderie...everything. I love it so much that I actually miss it the rest of the year--I visit Christmas shops in July just to get a hit of the Christmas smell. The trouble is that much of what I love at Christmastime involves money, and who really has enough of that?

I'm also one of those crazed gift-givers who actually get a rush from giving other people things. That of course, does cost money, and over the years I've developed some strategies for affording the holidays, particularly the gift-giving part of them.

1. Always look for the promotion. Buying make-up? Is there a free gift available? Buying ornaments from Hallmark? Can you spend $x and get a free stuffed animal or reindeer shaped candle? Headed to Target? They run specials where if you buy $x of a certain brand they will give you a gift card for $x. Look for the freebies out there, and then ask yourself, who might like this? Can I get more for my money?

2. Check your wallet. Did you receive a stack of gift cards last year? Did you use them? Two Christmases ago my husband received a gift card from a men's clothing store. He never used it. I found it and used it to help buy several shirts for him last Christmas, and he was happy to have the shirts regardless of how they were purchased. Gift cards are really hard to wear, so use those bad boys for something a little more practical!

3. Check your mail. In the past week I have received a $10 off a $10 purchase at JC Penny's and a coupon for a free "anything in the store" with any purchase at Bath & Body Works. Um, I'm pretty sure that "free" is a good deal anywhere. Use those coupons, and don't let them expire!

4. Keep the change. Last month alone I accumulated $40 in spare change. Imagine if I had collected change all year...that's quite a few gifts.

5. Fives only, please. I read about this in a magazine once. The writer refused to spend $5 bills. When she received one as change it went straight into a special part of her wallet, and then into savings. I did this for a while, and before too long I had collected nearly $200 in $5's. Add that to the spare change, and you have a great nest egg for Christmas spending!

6. Don't avoid the drug stores. CVS and Walgreens (and probably others--those are just the two we have here) run extremely good sales at this time of year on things you wouldn't expect like toys and decorations. I'm looking at a stack of batteries that I essentially paid nothing for this week and don't even get me started on the amount of candy I got there this month. Their clearance sales are awesome, too. Need some free money to spend there? Transfer a prescription and get a $25 gift card!

So, pull out those seat cushions and see what you can do! Do you have other ideas? I'd love to hear them!

PS: Check back next Friday after you get back from the mall for my family's long-term strategy for affording Christmas, and stay tuned for our evolving philosophy concerning Christmas spending.

Goin' Paperless...

Whether it is because of a noble stand we're taking or because of the guilt I feel over a recent impulse purchase, we (and by "we", I mean "I") have decided to go paperless in our household! No more paper towels, no more paper napkins, and no more toilet paper...well, OK, the last one isn't true, but I thought it might be funny.

First of all, why should we go paperless? Well, for me it is a noble two-fold reason: 1)we waste way too much paper and 2)the paper we are throwing in the trash is pretty expensive. Why pay big money for inevitable trash? And, why kill a tree in the process? (What did a tree ever do to you, unless of course, a tree has fallen on you or your home, in which case, please accept my humble apologies--especially to my mother-in-law Donna.)

Now for my not-so-noble reason. I was sucked into one of those store gimmicks the other day where they announce over the intercom that an AMAZING product will be demonstrated in two minutes and only people in the store will be able to claim a free gift, etc. That day, the product was the Magicloth, a chamois-type towel that can part the Red Sea with it's absorbent power. I stood and watched, received my free gift (a small square of a Magicloth), answered a couple of questions (I tend to pay attention when people talk--it's the teacher in me) and received two more free squares of Magicloth. I watched the rag soak up water from a pie plate that was nearly overflowing (I can't tell you how often this has happened to me--don't you just hate it when your pie plates start flooding?) and then the presenter POURED a 2-Liter bottle of diet soda onto some carpet, and the Magicloth absorbed all of that, too. Now, I don't pour soda onto my carpet very often, but my toddler DOES pour chocolate milk on the floor occasionally. Could this be the answer to my problems? Finally, the presenter clenched the deal. "You can even replace your paper towels with these Magicloths!" That's all I needed to hear. I was almost out of paper towels, and the thought of going to Sam's to buy the industrial-size package and then STORE it was something I was not looking forward to. And, so, I became the proud owner of two packages of Magicloths (4 large towels, total). The price was about the same as the cost of the mega-pack of paper towels, so I thought, why not?

I took the lovely khaki brown towels home (they are approved for military field use, of course, so they must look like the desert) and cut two of them into four pieces each. I stashed the other two under the sink unopened in case I need a quick gift later. (Watch out, Teresa, your birthday is coming up!) I have used them now in place of paper towels for two whole days, and so far so good. They do wash well in the washing machine, and they dry pretty quickly (although, you must be careful to hang them dry--that was one of the questions I answered correctly at the demonstration). I DON'T use them to dry my hair as the instructions suggest is possible--that seems a little weird to me.

Am I 100% confident that we will be able to use these towels to totally replace our paper ones? Not really. Already we realized while planning for the recent tropical storm that washable towels are great until it's not possible to wash them anymore because the electricity isn't working. We bought one roll of paper towels and agreed that they were only to be used in an emergency. So, we shall see how this paperless venture goes--stay tuned!

Be sure to visit Biblical Womanhood's Frugal Friday for ideas on saving money!

Do you have a great granola recipe? I would love to see it!

Pasta e Fagioli

Do you need a simple meal that is made with ingredients you probably already have in your pantry? This is one of my favorite soups--Pasta e Fagioli. There are many recipes for this particular Italian soup, but I have taken what I like and simplified it so that I can make it in a hurry. Enjoy!

1 T olive oil
1 onion, chopped
2 slices bacon, cut into 1/2 inch strips
2 cloves garlic, minced
1 large carrot, diced (the smaller the cut, the quicker it will cook)
2 heaping tablespoons of sun dried tomato pesto (I use the one that Classico makes)
4 c. chicken stock
2 cans kidney beans (I use one can of red kidneys and one of cannellini beans)
1 cup short-cut pasta (I use Barilla Plus elbows)

In a large pot (whatever you use to make soup), cook the onion in the olive oil until it becomes translucent. Add the bacon and the carrot. Cook until the bacon is cooked and the carrots are becoming tender. Add the garlic and cook until it begins to soften. Add the pesto and stir to combine.

Add the chicken stock and beans. Bring the soup to a boil. Add the pasta, and lower the temperature. Cook for about 10 more minutes, until the pasta is tender. Taste, and season if necessary. (Makes at least 4 servings)

That's it! An incredibly filling meal that only takes a few dollars and a few minutes. Enjoy!

Would you like to see more frugal tips? Check out Frugal Friday on Biblical Womanhood!