Christmas on a budget

When her husband confessed recently that he had been caught speeding a few months ago, Tricia Amora was put off. The Filipina expat had already worked out spending goals for Christmas and the last thing she wanted was an extra expense that could throw the household budget into disarray.

The traffic offence will set the Amoras back by about Dh500. What worries Tricia more is that there are financial commitments to take care of by the time January comes by. The family needs to renew their car registration and set aside a budget for their two children.

"I thought we're fine until my husband told me he had another traffic violation. That means we're going to have to pay more when we renew the car's papers in January. I want to celebrate Christmas, but this creates a problem for us because our budget is limited," Tricia, an administration officer in Dubai, told Gulf News.

With the latest setback, Tricia will be forced to realign her budget and one of the casualties will be the gift list. "I was generous last year, but this time I might cut the list down to 10 people and lower the budget per person," she said.

Budgeting during festive periods has never been easy on families who are already struggling to make ends meet with their regular expenditure. The intense social pressure to celebrate and spend, combined with rising cost of living and unexpected expenses, has only multiplied the stress.

Market research shows that people tend to spend more money during Christmas, New Year, Eid or Diwali than at any other time of the year. All these special occasions are associated with large family get-togethers and parties, elaborate decorations and multiple gift purchases. For those whose savings accounts are low, getting carried away by the festive spirit can lead to financial disaster.

Bargain hunting

The Amoras started scouting for Christmas presents last weekend and the prices were not at all encouraging. So Tricia and her husband decided to prioritise their son and daughter and look for bargains.

"We found two shoes that were heavily discounted and we're planning to buy them. The two pairs will cost us Dh565. I told my husband jokingly that, with the children our priority, we might as well not buy presents for ourselves, the gift of love would suffice," she said.

Tricia doesn't have big plans for Christmas dinner, either. "I won't host a huge dinner in the apartment. We might just go to my sister's place or to my friend's house on Christmas eve. We'll probably just bring food," she said.

What about the holiday decorations that most women have a weakness for? She does like them but Tricia said she won't be putting up a Christmas tree. "Luckily, we're just renting a room, so our landlady takes care of the decorating aspect. My wallet is safe," she added.

Her budget may not be as tight, but Sue Ellen Almeida has resolved to use self-control and forethought this season. However, it's probably a blessing in disguise for the newly married Indian expat, 25, that she won't be home for the holidays because that means zero spending on travel and there's less people to give presents to and family get-togethers to attend.

"I'm still new in my job, so I can't travel yet. Since I won't be in Mumbai to celebrate Christmas, my expenditure will be considerably less. Back home, I would have prepared a huge gift list as I have lots of friends and relatives. Here, I'll just give to a handful of people, so my budget this year has gone down by half," she said.

Almeida hasn't done her gift shopping yet, but when she does, she will most likely bring a list along and keep her eyes peeled for great buys. "I'm a little more organised. I prefer to plan my shopping. I start on deciding on the list of people I'm giving gifts to and try to see what I can buy for them.

"The amount I'm spending depends on the recipient. If it's for the husband, for example, it could be expensive, but if it's for a regular friend, I may have to settle for a lower amount. Most of my friends prefer clothing and others like books and accessories, so I already have in mind what to give away. I'm hoping that a lot of the stores will be on sale so I will spend less," she said.

Almeida has already decked her apartment for Christmas and she's proud to say she was able to save some money on holiday trimmings. "I purchased most of the decorations in Karama, that's why. There's a huge difference in prices. It's amazing," she said.

However, Almeida said, there's only one thing she will be splurging on this year: a nice dress for Christmas Eve. "I intend on attending a party, so I'm planning what to wear. I'm a big fan of Christmas myself and this is the only thing I don't set a budget for. For other things, I'm more careful. Anyways, we only celebrate once a year," she added. For Dolly Nadar, her wallet will be safe this holiday season. The Indian expat still celebrates Christmas with friends in Dubai, but the celebration will be a bit low-key.

"I'm not a Christian but I always get invited to a friend's house for dinner, so I'd carry some refreshments and gifts for the children in the household. There will be no spending on holiday decorations, elaborate get-togethers and glamorous get-ups, so on the financial aspect, there is not much to worry about," she said.

"My two-year-old son will be attending a Christmas celebration at school, though, and I'm going to dress him up in a fancy costume. But that won't cost much, either," she added.

Are you sticking to your budget when shopping for gifts? When would you make an exception? What creative solutions do you use to avoid overspending?