Tag: life

Planning Ahead for Your Holiday Budget

Fall has arrived, and with it, the marketing blitz designed to capture your holiday spending has swung into high gear. I am one of those people who start my holiday shopping very early. I ordered my Christmas cards in July, a few new Christmas ornaments in August, and I have several gifts hidden away from the prying eyes of my grandchildren.

I like to spread out my spending and reduce the pressure of last-minute shopping. I am always on the lookout for a great gift or a new, interesting holiday decoration. Starting early helps me enjoy the holidays more, but it also helps me keep my holiday spending under control.

I love the book Skipping Christmas written by best-selling author, John Grisham. It is the basis for the holiday movie Christmas with the Kranks. The story’s protagonist, Luther Krank, is shocked by the amount that he and his wife spend on holiday giving the previous Christmas. He decides that they will cut their spending in half by skipping the holiday altogether and taking a cruise. Of course, things don’t go according to his plan.

It is projected that Americans will spend a record of more than $1 trillion on the holidays this year. At the same time, the majority of Americans says they will cut back on their holiday spending in response to continued inflation. Whether your finances are in great shape, or money is tight and you anticipate cutting back on your holiday spending this year, it is important for you to make a budget for holiday spending and to keep your spending within your budgeted amount.

Holiday spending encompasses much more than the gifts you purchase. As you consider your budget, you need to take into consideration all the different categories of holiday spending and make a plan to reduce spending without totally skipping the holidays. Here are some ideas for your to consider:

1. Gift Wrapping

Wrapping paper, gift bags, tissue paper, ribbons, bows, and gift tags all cost money. The fancier your gift packaging, the more of your budget will be consumed.

  • Save money by saving and reusing gift bags.
  • Take advantage of free gift-wrapping options offered by retail shops.
  • Buy gift wrap at discounted prices at the end of the holiday season. If you did not do that last year, you can save money by purchasing wrapping paper at dollar stores.
  • Search online for inexpensive, unique gift-wrapping ideas, such as Gift Wrapping Ideas: 18 Clever and Inexpensive Ways.

2. Holiday Cards and Postage

Include the cost of stamps for mailing holiday cards as well as postage for shipping Christmas presents.

  • Save money on cards by purchasing cards at dollar stores.
  • Send cards only to people you do not see regularly.
  • Save money on postage by sending e-cards or emailing your family’s holiday newsletter rather than sending physical cards through the postal service.
  • Save money on shipping gifts by having online retailers gift-wrap and deliver gifts directly to the intended recipient.

3. Decorations

You do not have to purchase all new decorations every year to make your home feel festive.

  • Reuse the same decorations from one year to the next.
  • Add a few new ornaments and decorations each year to affordably update your décor.
  • Search online for affordable, unique decorations you can make, such as 100 DIY Christmas Decorations for a Homemade Holiday.

4. Holiday Meals

Holiday meals can become expensive, especially when you are feeding a large family or entertaining several guests.

  • Allow your guests to bring one or more dishes each. This saves you money and ensures that each guest has the opportunity to share their favorite holiday dishes.
  • Plan your menu and shop carefully. Purchase ingredients with a long shelf life early when they are on sale. Select affordable proteins to be the center of your meal.
  • Cook as many items from scratch as you or your guests can make.

5. Hostess Gifts

If you go to a lot of holiday gatherings, hostess gifts can add up to a lot of money.

  • Offer to bring a favorite dish to share rather than purchasing a gift for the hostess.
  • Bring a homemade gift, such as a homemade dessert or bread.
  • Put together a thoughtful gift basket of inexpensive items you know your hostess enjoys, such as teas and dainty cookies.

6. Event Tickets

If your holiday plans include attending plays or musical performances, you need to factor in pre-event dinners and after-event desserts and drinks. You can save money by:

  • Attending matinees or other off-peak performances, such as midweek shows.
  • Eating at home before going to the show.
  • Purchasing tickets through discount outlets.
  • Including some free events, such as church plays and community concerts.

7. Charitable Giving

The holiday season brings out a spirit of charity in most of us. There are many wonderful causes and opportunities to donate presents, food, and money to a wide variety of charitable organizations. Here are some tips to help you stay within your budget.

  • Make a budget and stick to it.
  • Make a list of the charities you are considering supporting. Rank the charities based on the ones that best match your values and passions.
  • Divide your charitable budget among the charities you have decided to support.
  • If you plan to donate gifts rather than cash, shop early and buy gifts on sale to stretch your charity dollars.

With some forethought and planning, you can enjoy the traditions that make the holidays special without spending more than you can afford. Planning ahead allows you to enjoy the traditions and time with family and friends that make the holidays special without letting holiday spending become a burden.

How to Pay Your Employees Fairly Without Hurting Your Small Business

As a financial advisor for small business owners, I meet with approximately 300 unique business owners every year. Many are solopreneurs who prefer to stay solo. Others start alone but plan to hire as they grow. And some, like my husband and I did, need to bring on employees before they even open their doors.

When we opened our quick-serve pizza restaurant, we had to hire and train our team first. We paid minimum wage to teenagers seeking their first job, about 10% more to older teens with some experience, and 25-50% above minimum wage to adults with significant prior experience. It was a valuable early lesson in balancing what the business could afford with what it takes to attract good people.

One of the most common goals I hear from small business owners is the desire to create good-paying jobs. That’s a noble aim, and I respect it deeply. The Bible is clear on the importance of paying people fairly and on time. In Luke 10:7, Jesus tells His disciples, “The laborer is worthy of his wages.”

While Scripture instructs us to pay what is due and to do so promptly, it doesn’t provide specific guidance on determining a worker’s exact worth. That decision often feels challenging-especially when you’re hiring your first employee.

Here are practical, step-by-step guidelines to help you determine a fair and sustainable wage or salary.

Steps to Determine What to Pay an Employee

1. Define the job clearly.

List every task the employee will perform. What skills, education, certifications, or experience are truly required? The greater the requirements, the higher the pay should typically be.

2. Consider the working conditions.

Will the job involve difficult weather, unpleasant tasks, physical demands, or risk of injury? Jobs with tougher conditions usually command higher compensation to attract reliable candidates.

3. Research market rates.

Look at what other companies in your area are paying for similar roles. Competitive pay helps you attract and retain qualified people. You can find good data on sites like Indeed, Glassdoor, or your local Chamber of Commerce.

4. Review industry standards.

Industry reports can show average salaries and what percentage of revenue is typically spent on payroll. Keep in mind that national averages may not fully reflect your local cost of living—wages are often higher in high-cost areas and lower in others.

5. Determine what you can realistically afford.

Calculate how much additional revenue the new employee is expected to generate. Factor this into your budget to ensure the position is financially sustainable before you make an offer.

6. Factor in your local cost of living.

Consider the minimum salary that would allow an employee to maintain a reasonable quality of life in your area. If your industry traditionally pays lower wages, make sure your offer is at least above both federal and state minimum wage requirements.

7. Calculate the total cost of employment.

Look beyond the base wage. Include:

  • Employer portions of Social Security and Medicare
  • Workers’ compensation insurance
  • Health insurance contributions
  • Retirement plan matches
  • Any other benefits

Note that Paid Time Off (PTO) doesn’t usually create direct extra expense unless you need to bring in coverage.

8. Set a salary range and negotiate thoughtfully.

Establish a realistic pay range based on the factors above. Offer higher within that range for candidates who can contribute immediately, and lower for those who will need more training.

Final Thoughts

Taking the time to follow these steps will help you offer wages that are fair, competitive, and sustainable for your business. If you offer is too low, you’ll struggle to attract good candidates. If it’s too high for your business to support long-term, you risk financial strain or having to make difficult changes later.

The goal is to prayerfully find the balance-paying a wage that honors the employee, supports your small business, and allows both you and your team to thrive.

When you get this right, you don’t just fill a position. You invest in a person who can help your business grow while creating meaningful work in your community.

Retiring the Penny

My father collected coins all his life. Some of these coins were put in folders or protective pockets, but many were stored in old jars. As a child, I liked to look through his many jars of coins for ones to add to my coin folders.  My maiden name is Whitman, and it was a source of pride that we always used Whitman coin folders for our collections. 

Today, I have several jars of Dad’s coins waiting to be rolled up and deposited in the bank or saved in coin folders. This picture shows two of these jars. I likely have thousands of pennies that Dad collected, and their sentimental value is worth much more than their actual value.

I’ve been thinking about pennies since President Trump announced that he would stop the production of pennies.  Some people fear that retiring the penny will cause prices to rise as businesses round prices up.  Others point out that it costs the U.S. $192 million per year to mint pennies at a price of nearly 4 cents per penny.  I wonder if the value of pennies will increase as they become rarer, so I did a bit of research.  Here’s what I found.

  • Officially, the U.S. does not have a coin called a penny.  Our one-cent coin is called the cent. The British have pennies, so our forefathers did not want to name a coin “penny.”
  • It cost 3.69 cents to mint a one-cent coin in 2024.
  • The cent was first minted in 1793; the Lincoln cent was introduced in 1909.
  • Eleven other coins and currency have been retired, including the half-cent coin, the two-cent coin, and the twenty-cent coin.
  • The penny will not go away anytime soon, as there are approximately 250 billion in circulation.
  • Prices will not necessarily round to the nearest 5 cents.  Most payments are made by check, electronic funds transfers, and payments apps, which will still be able to accommodate rounding to two decimal places.
  • Pennies are not likely to increase much in value. So, my 2,000 (estimated) pennies will still be worth about $20.00

Do you think it’s a good idea to retire the penny? Please feel free to comment and share your thoughts.

This article was published in my quarterly newsletter, along with articles on Scriptures that help you feel secure in times of financial stress, reducing spending by making it painful, and valuable Beanie Babies. If you would like to receive my quarterly newsletter on Honoring God with Your Money, please complete the form on the Contact page or send me an email to susan.ball5@aol.com