Beating Broke

Personal Finance from the Broke Perspective

Give the Gift of Experience This Holiday Season

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It is only September, but I have already seen Christmas trees and holiday presents in Costco.  Most people probably aren’t thinking about holiday gift buying now, but they will be in another month or two.  If you are like most people, you probably have difficulty coming up with gift ideas for several people on your gift giving list; most people often have everything they need, and what they don’t have, they buy themselves.  Or, you may look around your house at “stuff” you are not using that is just taking up space and dread the latest infomercial product Aunt Shirley will buy you for the holidays because she doesn’t know what else to give you.

If you are tired of giving more “stuff” that people don’t need or the generic gift cards that people now resort to, consider giving a different present this year—the gift of experience.

Christmas tree lights IIMaybe your best friend, inspired by Dancing with the Stars, has always wanted to take a ballroom dancing class but can’t justify spending the money on that kind of indulgence.  Why not give the gift of a class or two for her so she can try it out?

Perhaps your sister recently had a baby and would like nothing more than a weekend away to reconnect with her husband.  You could offer to babysit for the weekend or to pay for a room at a bed and breakfast for her.

The opportunities are endless for this type of gift.  Chances are that those closest to you often tell you what they would like to do and what is most important to them at this stage in their lives.  By listening closely, you will have endless gift giving possibilities.

People often will not splurge on things they want to try or experience, so they will appreciate your gift all the more.  In addition, they will remember your gift for years to come.  You probably don’t remember that cousin Ricki gave you a $50 gift card to your favorite department store last holiday season, but you will remember that she paid for a three hour cooking class for you to take at the local culinary school.

Another bonus of giving the gift of experience is that there is no remnant of it physically.  Unlike gifts that you don’t want or need that just clutter your house because you feel bad throwing them out or selling them in your next garage sale, the gifts of experience do not take up a physical presence in your home.  They enrich your life and create pleasant memories, and you are able to keep your home free of clutter.

If you are tired of the commercialism of the holidays and would like to connect to your friends and family on a different, more thoughtful level, consider giving the gift of experience this upcoming holiday season.  Chances are they will enjoy the gift and the new experience and will remember it for years to come.

photo credit: Shandi-lee

Recession Perception

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It’s officially official.  We’re in a recession.  And it started almost a year ago. Way back in December of 2007 in fact.  But how much of the recession is in current perception?

How would you or I know that we were in a recession?  Well, most likely, we’d learn by being told.  Of course, it’s possible that we’d have some idea based on some indicators in the economy.  Many of which exist right now in the economy.  But is it made worse by knowing that it’s there?  Is there some part of us that, knowing we’re in a recession, buckle down harder and become more frugal than if we hadn’t been told?  Is that sensible?

One thing that has/will come from this “recession” is that many people will have become much more frugal than they were before.  Many of the people who made it through the Great Depression are credited as being the most frugal people ever.  When you’ve gone through extremely lean times like they did, you learn to squeeze every bit of value out of everything.  Even today, I’ve met people from older generations who rinse and reuse their ziploc bags.  Who wash and dry their paper towels.  And those same people are likely not really sweating the current state of the economy.

My wife and I have been following (albeit loosely) the teachings of Dave Ramsey’s Total Money Makeover for almost two years now.  Our financial standing is amazing compared to when we began.  We also live in a part of the country (North Dakota) that doesn’t really feel the violent mood swings of the economy.  We feel some of the ripples, but the real waves are in places like Los Angeles, New York, and even the closer Minneapolis.  And, while we are thinking about the effect the economy could have on us, we aren’t sweating it.  It’s a wonderful feeling to have.

Now, for some positive thinking.  A brighter perception of our economy.  I have no doubt that our economy is a bit in the dumps.  I have no doubt that the dip we’re in is going to last well into 2009.  But, I think we’re on the bottom peak of it.  Somewhere in the first quarter of 2009, many companies will begin to release their earnings for the holiday season and most of the analysts will be surprised by the numbers.  Despite the perceived recession (real or not), we’ll have spent the same as we did last year and a bit more.  Slowly, our economy will regain it’s footing and begin operating more efficiently.

So spread a little hope this holiday season.  It’s been worse, and it’ll get better.  But don’t forget to learn a lesson from it all.  A little bit of frugality never hurt anyone.

Break the Commercial Christmas Ties

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If you’re tired of the commercial ties that have been bound to the holiday season, perhaps it’s time you make use of a new site out there called “No Christmas Gifts This Year”.  It’s a quick and easy site that gives you the ability to send a e-card to a friend or relative stating your wish to spend time with that person rather than buying each other gifts.

It’s been a while since Christmas was a traditionally no-gifts holiday, but from a personal finance perspective, I can’t help but think it’s time we all got a little closer to that.  After all, it’s not about the gifts but about the people that we spend the holidays with.