Gearing Up for the Holidays Series- Go Debt Free

I don't know about you, but I have the holidays on the brain.  I always start thinking about the holidays in August because I have to in order to be ready in time.  I have a small extended family that always celebrates the holidays together.  This means I need to buy Christmas presents for all 14 of them, not including my husband and friends.  In previous years, we have opted to use credit cards to pay for gifts.  Caleb and I have hated doing this and 2 years ago we decided to stop using credit cards.  As on now, the only 2 cards we use are my Kohls card and our Chase credit card.  I use my Kohls card during my infrequent runs to Kohls and the Chase card is only used for emergencies.  We've haven't charged a dime on it in over 18 months, but we're still a ways from paying it off.  Once we do, the only card we'll use is my Kohls (because I like getting 15% off when I use it).

Last year I committed to a debt-free Christmas.  I didn't have any money saved up so this was especially hard.  Our only saving grace was that we both had a 3rd pay check in December which almost completely went towards Christmas.  Going debt-free was incredibly challenging but it was the best decision we could have made.  There were no regrets come December 26th.  We didn't add to our debts, which we've been working towards paying off for several years.  We still have a couple of years to go and incurring more debt would only have prolonged our struggle.

Needless to say, we'll be doing another debt-free Christmas this year (well, mostly, which I'll explain).  Let me outline some of the ways I am going to accomplish this:

1.  Evaluate what items I already have to give as gifts.  I typically purchase items throughout the year for my in-laws since they are easy to buy for.  I keep my eye out for gifts for others, but I don't purchase a lot.
2.  Start figuring out gift ideas in August.  Most of my gift ideas are already set.
3.  Start purchasing gift certificates slowly.  Spend a portion of each pay check on gifts (we have lots of birthdays in the fall so most of this up until November has been focused on birthdays).  We're only giving out a couple of gift certificates, so this works well.
4.  Start making homemade gifts.
5.  Start purchasing gifts and/or dry food stuffs for parties as they go on sale over the next several months.
6.  Go to stores like Marshalls and pick up fancy hand lotions and other nice gifts that could be used as filler gifts for family members and friends.
7.  NOT set an amount of money on each person, but set an overall budget.  I like to have roughly the same amount of gifts per person instead of spending a set amount on each person.  This gives me some flexibility when gifting.  For instance, I found an unopenned item at my local Goodwill that was PERFECT for my father-in-law.  He loved it and still keeps it on his living room table to look at.  It cost me $4.99.  I also picked him up some gourmet coffees at Aldi's and made a root beer sampler for him.  I spend more on my mother-in-law, but I still gave her 3 presents.  Despite the difference in how much we spend, I think they equally enjoyed their presents.
8. Use my Kohls card to purchase several select items as Kohls.  Since Kohls carries nice baby clothes and they are often on sale, I'll use my Kohls card to purchase those.  Other items I may purchase there: jewelry for my sister-in-law and/or grandmother, slippers for Caleb, and a nice top or sweater for my other grandmother.  While we won't pay these off immediately, I'll will be able to pay off the card within a couple of months.
9.  Tell our families proudly that we intend to have another debt-free Christmas- right before I ask them what they would like.

I hope this post helps you have a debt-free Christmas.  The holidays are supposed to be a time for sharing time with your family and friends, not stressing about bills but it so often ends up being that.  By being realistic and truthful with your family and friends you can mitigate some of the worrying and focus on spending time with your loved ones.  Even if you have a lot of people to buy gifts for and don't have a cent already saved up, you can still have a great holiday season.