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December 3, 1998

Holiday Budgeting

Setting up a Budget

The weather outside is frightful, but the fire is so delightful...

If you're a typical American, you're looking forward to the next six weeks with a mixture of excitement and trepidation. December is the coolest of holiday times. On the other hand, we all have to admit that it can be a major pain in the butt. But the Fool is here to help.

What's our secret? The trick is in the planning. As Hannibal Lecter reminded us (ripping off Marcus Aurelius): "Think of first principles. What is it that is most important?"

Whether you celebrate Christmas, Hanukkah, Kwanzaa, or the Winter Solstice, we are all honoring similar ideals. Being thankful for our blessings, giving to others out of our abundance and reflecting on our life and our place in the world are the touchstone concepts that we value at this time. So where do Macy's and Hallmark fit in?

Well, that's really up to you. Where do you want them to fit in? And when will you do it? Whip out your calendar or PDA and let's get started.

Take An Inventory and Make a Plan

1) When you think of the holidays, what is it that you look forward to most? Baking cookies with your kids? Wearing that new dress on New Year's Eve? Helping out at your favorite charity? Or getting a huge ring from your husband? Be honest. What is it that matters most? Let this be the central theme to everything that comes next.

2) How much time do you have? Don't drive yourself crazy making more commitments than you can really enjoy. Does your job require you to work extra hard at year's end? Do you have four kids who are all in different plays and recitals? Factor these things into your planning.

3) Are you going to travel over the holidays? When will you go? When will you come back? How will you travel? How much is it going to cost, and is there any way that you can you make it cheaper?

4) Do you have commitments to your place of worship or your favorite charity? Money or time? Is it on a particular day, for a party or fundraiser?

5) What are your commitments to your family and friends? Parties and trips to see Santa need to be penciled into your calendar.

6) When are the special events that you want to attend, and how much will they cost? Going to see "The Nutcracker" or "A Christmas Carol" is a perennial favorite in some families. Sometimes a free event, like watching a community holiday pageant, is the one people look forward to most. Don't forget to budget the time and cost.

7) Will you need extra time to make things like presents or special foods? When will you do it? Will you need materials or ingredients that are hard to find?

8) How many cards are you going to send out? When will you address them? How much is postage? Do you need to plan for goofy things like having your dog's picture taken for the card?

9) When will you decorate? Are you going to have to get anything for decorations, besides a tree? Pick an evening when everyone in your family is going to be free to do this together.

10) If you're going to entertain, start thinking about invitations, catering or cooking, and that dress that everyone will be envious of.

Make a Budget

Now that you know what you want and need to do, let's think about what you can afford to do. Click here for our handy, dandy Foolish Holiday Budget Worksheet. We've tried to think of just about everything that you're going to be spending money on for the next few weeks, but just in case we forgot something, there's always the "miscellaneous" category at the bottom.

If you fill out the budget and discover that your expected output is exceeding your hoped-for input, don't forget to check out our 10 Foolish Merriment Savers for the holidays. Come to think of it, maybe we should have included a line for Maalox in the budget...

- Trudy Bowen

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