Maximizing Christmas...

I know it is barely Halloween, but once the candy has been collected people's minds turn to Christmas. My thought is, with a bit of forethought and proactive discussion, one can truly make Christmas work without blowing your budget or increasing debt by reducing your expenditures and planning what gifts you will receive.

Yes, I am sure this post will be rubbing some people the wrong way, but the fact is many people like help with their Christmas shopping, and just because it is better to give than receive really doesn't mean that you won't be receiving in reality. Taking advantage of this fact could help with your debt issues.

Giving - I love Christmas! My favorite part is shopping (especially for kids), but let's be honest this racks up huge dollars. If you have the guts to be honest with your family and friends, let them know of your position and let them know you will need to scale back this year. If your family is receptive, some scale back options could be; pulling names to reduce the amount of gifts to buy, setting spending limits, agreeing to only homemade gifts (needs some creativity, but can be huge savings while still being thoughtful), or maybe do some volunteering as a family instead of gifts.

Receiving - Here is the touchy part. No one should ever expect gifts, or be able to dictate what people buy them, but sometimes providing some input could help you out instead of getting yet another reindeer sweatshirt. If people ask for your input, give it!! I can guarantee that almost everyone you know and love would rather spend money on something you really want then to find out that you don't really like their gifts. If they haven't asked for input, be up front and make suggestions, just remember they may not necessarily follow your suggestions, and if you have asked to scale back Christmas (as in above) don't expect much in return (if anything).

However, if you have a project you are working on and can't really afford, your kids need items for school or new clothes, or there are things that you need from around the home, why not take advantage of this opportunity to keep your life at an even keel and avoid further debt.

Here are some tips to make it easy on everyone:

Know your audience: I don't know your Grandma, but you do. Make sure you know if they would be receptive to "suggestions." Sometimes you just have to deal with a new pair of footie pyjamas because the tradition is more important to that person. Some people may also be offended by you making suggestions on your own gifts. Determine whether your audience will be more welcoming to more generalized comments (ie. they think they came up with the idea themselves) or more directed conversation.

Know their limit: Granted circumstances change from year to year, but we can generally gauge what people's spending limits are based on the gifts we have received in the past. Obviously, don't ask for a new water heater from Auntie Beatrice if she generally only spends $25. Make suggestions based on the limit, or indicate that contributing towards a bigger project may be the most beneficial for your life right now.

Remember that you may not be the only one in financial crisis: Just because your parents normally drop a mint on you at Christmas time does not mean that they can or are willing to do it every year. The economy is rocky and their retirement may not be as stable as once thought. Bear in mind that they may be pinching those pennnies just as hard as you are, even if it doesn't show.

Remember and Communicate your reasons: Don't forget why you are trying to plan your Christmas- Debt. This is not a kid in the candy store type mission, it is to try and keep your life in order. Be honest with your family and friends and they will be far more likely to be receptive then coming off like a greedy little child.

Good luck! I'm asking for drywall this year.