How Much...and Why?

QM · 04-13-2009, 04:29 PM

Percentage-wise...how much would you put into your Christmas envelope from your tax return? Anything?...or would you try to pay off your credit first? (BTW-One problem is that I'm not budgeting for Christmas. Truth is, I don't really have a budget. Too much work at this time.) Without lecturing me that I need to do a budget (because I know I need to get one done some day), how much would you put into your Christmas envelope and why? TIA!!!

**justpeachy92** · 04-13-2009, 04:39 PM

I wouldn't put any from my tax return, because we have already assigned that money a purpose. I do budget and include a christmas fund in that money. I set aside $2000 through out the year, to get gifts for my family of 6, what extended family & friends we buy for, and what I will need for holiday cooking.

**JanieD** · 04-13-2009, 04:58 PM

My Christmas budget is around $400 & I save a little each month for it. I like having some cash for "early/year round" purchases. Since my budget is small I like to find bargains throughout the year to help stretch my money. I think without knowing your Christmas list (who you're buying for, etc), its hard to advise. Would having $100-200 now to start shopping earlier really help? Or would you feel better putting it toward debt? I tend to use tax refunds for extras (home repairs, replacing applicances or furniture). Otherwise, those expenses would coming out of our savings.

**hotprincesscm** · 04-13-2009, 05:30 PM

I used my tax return to pay off debt. My Christmas fund I put aside a little each week. Whatever I have come Christmas time, is what I can spend. If I don't have it...I can't spend it!

**redhead68** · 04-13-2009, 06:10 PM

None. I work very hard to make sure that I don't get a refund. I'm not fond of giving anyone, even the Feds, an interest-free loan.

**Starlight9803** · 04-13-2009, 07:13 PM

Personally, we used our tax refund to pay off debt and boost our emergency savings. As for Christmas, I don't have a specific budget. I put a little extra in my grocery budget every month that goes towards either stockpiling great deals or buying Christmas gifts as I find them on great sale/clearance. I also put our saved change towards Christmas, and that amount varies from year to year.

**mauimagic** · 04-13-2009, 07:20 PM

I'm not a percentage person, so.....what would work best for you?

Sometimes when we get a tax return, my DH and I will buy something for the house or ourselves then put the rest towards debt reduction.

Sometimes we have to care of our mental health first so we can support our lifestyles. If you want to put the whole thing into a Christmas fund - go for it. It's just one more choice of the many we all have to make!!

**Missourimom** · 04-13-2009, 11:02 PM

Unfortunately, none of ours will go towards Christmas or debt payoff....it's all going on "today's" necessities like the water bill, electric bill, etc.

**kittykatstrong** · 04-14-2009, 12:06 AM

We dont use our refund for the christmas fund. It goes toward savings and having a little fun too.

**frugal-fannie** · 04-14-2009, 12:28 AM

I have a set amount I a lot for certain people. I put that in a savings account and If I find their gift at a good price earlier in the year. Then I look for extra's closer to Christmas.

**tigo** · 04-14-2009, 08:30 AM

We are using the refund to clean up medical debt. I set aside part of my paycheck to pay for personal spending (that means anything not needed for the household but generally is spent on the kids/grands needs). I try to move whatever is leftover from the week to savings to build up. We have birthdays and holidays to buy for so I try to keep an eye out for gifts year round. When I find something awesome I will take it out of the savings (if it keeps us under the amount we agreed to per person on the budget)

**mombottoo** · 04-14-2009, 03:21 PM

If I had the option of putting money from my tax return into a Christmas savings envelope I would put 10%...why because it would mean less money going towards Christmas out of my day to day living money.

**LucyOctopus** · 04-16-2009, 01:50 PM

To answer your question, I would pay off credit. That money that is coming back to you is not "free" money; it is an interest free loan you made to the government. You did them a favor. Now you are getting your money back. Pay for the things you couldn't afford the first time around -- the things loading down your CC balance. Then seriously consider setting up a budget to get a better sense of what to do with the remainder of that money. You can always make things for Christmas (pies, crafts, time, etc)

**Thevail** · 04-16-2009, 02:04 PM

It depends on your particular circumstances, but I'd probably only set aside some of that money for Christmas shopping if you actually KNOW that's what you'll do with it.

CC debt is the worst because of the massively high interest rates. If you can kill a CC debt, I'd do that first. Then, since you know what your minimum monthly payment on that card was, I'd save that amount each month towards christmas.

That way the CC is paid off, no extra money comes out of your budget each month (you were going to make the debt payment anyway) and at the end of the year you paid yourself all that lovely money rather than the CC company.