i LOVE giving gifts to people at Christmas, it’s so much fun. there is something so gratifying about finding that “perfect” gift, the one you know will be loved and appreciated. being crafty as i am, i’ve handmade a lot of gifts for friends and family, but i’ve got some family members who are as into the handmade gift-that’s okay too.

whether handmade or store-bought, giving thoughtful gifts at Christmas-time is something i value greatly. i think it probably means more to me than the person receiving the gift.

the thing about giving gifts is that it can be stressful, because it costs money. and giving gifts is just ONE of the expenses that usually comes along with Christmas. we send out christmas letters with a photo card, we go out to eat a little more often around the holidays, we travel, we give more money away, and we just generally spend more money.

i’m not complaining, i love this time of year, and i love all the things that go along with it. even the spending money part. after all, it’s easy to spend money when you have money to spend! here’s how we plan for the Holidays financially:

at the beginning of 2011, we decided on a reasonable amount to spend on Christmas. we actually doubled what we tried to spend last year, because it was too hard to stay within such a small budget. then we divided that number up into monthly increments and saved a little bit each month for Christmas. instead of catching us by surprise, gift-giving is something we can do with out feeling sick about how much we’re spending. i’m so grateful for that.

i also am in the habit of Christmas shopping throughout the year. if i find a really great deal on something, or find something really unique that i know someone will love, i’ll buy it then and just pull the money out of our Christmas “envelope.”

what are your plans for Christmas spending? how early do you start putting money away? how do you save money during the Holidays?

have a great Thanksgiving tomorrow!

i’ve mentioned that i got in a car accident in early october. i was on my way to ames to have some sister/mother bonding time. i was so excited about spending an afternoon shopping with my sister and going out to dinner with my mom. i left iowa city at 11:30am and was planning on getting to ames by 1:30pm.

but i didn’t get to ames until close to 3pm because i hit someone on the interstate.

why did i hit a car? because the car suddenly crossed three lanes of traffic into my lane, where i braked, swerved into the ditch and swerved back into my lane which resulted in the hit of her car and the ditching of my car.

it was not fun or amusing. and i was sorely disappointed at the time this was taking away from my family. and at the same time, this was the best car accident to get into. ever.

first of all, myself and my car could have been much, much worse. it could have flipped, i could have been stuck inside, i could have been injured. lots of things. as it were, i wasn’t even sore the next day and my car was still completely drivable. my car incurred a sizable dent, but nothing else seems to be wrong with it.

second of all, the other driver was not hurt either.

third of all, other cars could have easily been involved. it was a crowded interstate but we were the only two cars involved in the accident.

fourth of all, we got a bunch of money for the damages! well, it was a bunch of money considering that we decided to leave the dent in the car and keep the cash.

bryan and i have been talking a lot about how to make the most of this unexpected money in the last week.

what would you do if you received a totally unexpected amount of money? 

here’s one thing i often forget about money management: the whole point of financial freedom is to be free.

i’m going to use a common youth group analogy to help explain this one.

every path has two ditches, right? so the path of financial freedom is the same.

one ditch is the party ditch. the one you fall into while you spend more money than you have on things you don’t even need. that’s the ditch that people like me avoid at all costs. what can i say, i’ve never been a partier.

but the other ditch traps you in the same way that all ditches do, it just feels a little more right as you’re falling in. if you fall into this ditch, you may not have debt. you may have a large savings account. you may, by all evidence, be financial “free.”

i fall into the latter ditch. and speaking directly from the tightwad ditch [as i affectionately call it] it’s still quite ditchy.

there are days when i don’t feel free at all. i feel bogged down by trying to figure out how every last penny can contribute to our savings account. i feel tired of compulsively checking my bank account and updating my check register and wondering why nothing has changed in the last hour. i get so easily obsessed with our finances that our budget sheet is almost constantly up on my computer. it’s a dark, damp ditch that isn’t the least bit encouraging or freeing.

and then i remember what i always forget. i remember that it’s pointless to try. so. hard. at this whole staying out of debt thing and this being wise with money thing if i’m just going to fall into the tightwad ditch. if i’m constantly stressed or obsessed with the bottom line, that isn’t freedom.

i think there are physical reasons to be stressed about money, like not having enough to pay your bills each month. but i’ve never experienced that, so i’m pretty sure the cause for my stress is completely mental. and therefore, i’m completely mental. i will drive myself crazy if i don’t lighten up on myself.

jeez, this sure turned into a rant to myself, so i guess i’ll just go with it:

note to self: don’t be such a tightwad.

i know i probably sound like a know-it-all about money stuff at this point. just to be clear, i don’t know it all. i’m just a huge nerd.

having said that, if i know anything about money management, it’s this: passion is a money pit.

this fact is neither good nor bad, just impenetrably true.

let me tell you about my husband. he loves playing the bass guitar. music in general is one of his greatest passions. can you guess what he spends money on?

our house is filled with records, cds, and musical instruments of all sorts. it’s fantastic. it’s not bad that bryan is passionate about music-it’s a quality i’d love for our children to inherit from him. and it’s certainly not a bad thing that we have a bunch of music-related “stuff” in our house. some (read: me) might call it junk or clutter, but not bryan. to bryan, it’s the most precious stuff he owns.

thus, in our family, music is a money pit.

i certainly have my own vices as well. and between the two of us, we’ve come up with some shared passions. these passions, in particular, are influenced by this money pit truth. in other words, we’ve considered the “money pits” that are most valuable and that we want to invest in the most.

so what are our passions?

parenthood.
i’ve always wanted to be a mom. and i’ve known for a while that when that day comes, i want to stay home with our children. we want to provide for our children all that they need. everyone knows that kids cost money and a lot of it. but it’s a worthwhile money pit.

reaching the world with the gospel. 
this is an area where we are tested to put our money where our mouth is often. while we don’t have any particular plans to move overseas, we know that God could put this in our future. we want to be available and ready to go if/when God asks us to and we want to support those who do have plans to go overseas. this is a money pit we never want to lose sight of-we always want to be passionate about the work that God is going.

investing in our community.
sometimes it’s throwing a party, sometimes it’s providing for someone in need, and sometimes it’s the simple act of investing in our local church. we don’t want to forget about those near and dear to us, and investing financially is a great way to stay connected.

being a light.
sorry for the small soapbox i’m about to step on, but has anyone noticed how cheap christians can be? bryan and i always want to be open-handed with our money. we want to pay our bills on time, give good tips to waiters, and pay a fair price for services or goods. we don’t want to be known for always asking favors or taking everything we can get. this can be a struggle for me especially as “frugal” can quickly turn into “cheap.”

what are you passionate about? is it a worthwhile money pit?