Great Expectations On a Tight Budget

Jacquette M. Timmons

The economy is recovering. Too bad that is what can also be said for people still paying off last year’s holiday debt. According to Time.com, 13.6 million Americans have yet to pay off debt related to last year’s winter holidays! Wow!!

13.6 million is a staggering number, especially in light of the number of unemployed and underemployed in our midst. And even if you have remained gainfully employed throughout the recession but come recovery, you haven’t escaped the vicissitudes of the economy: It simply costs you more to live! Just compare the price of your favorite box of cereal today to what it cost in 2008.

The state of the economy may not affect your desire to be generous, but it can certainly impede your ability to entertain and spend money on gifts as you would like or may have done in the past. So what do you do if this describes you? What can you do to prevent money – or more precisely the lack thereof – from stealing your holiday cheer?

• Manage your expectations: Be honest with yourself about what you can and cannot do and don’t be ashamed about your capacity. Your love isn’t diminished just because you have less money with which to work.

•  Don’t fake it: Give yourself permission to be candid with your family and friends about your financial situation. (You can paint a picture without providing too many details. This is especially helpful if you have children, for whom age-appropriate conversations are needed.) Not only will your transparency help manage everyone’s expectations; it just might create the space for others to be honest with themselves and help them avoid over-spending.

• Give to the joy: Set a holiday budget for presents, overall and by person. Provide everyone for whom you plan to buy a present with a price range to keep in mind and ask for their wish-list of three (3) items within that range. And for each item on the list, ask them to describe the joy they will get from getting this gift. Imagine that joy as you are shopping. This is incredibly helpful if you’re feeling self-conscious about the need to be thrifty.

• Go for pot-luck: If hosting the holiday gathering/s usually means underwriting everything? Now might be a really good time to invite others to share the responsibilities. Just make sure you don’t have more dessert than hearty-food!