The savviest way I made my money work harder this season was by earmarking a certain amount of money exactly LAST season!
On Dec 21st, I decided to invest $2000 in the SPYDERS etf (SPY). I figured if I could invest some money then, and keep it in the market for 1 full year, any profits I make would be taxed at only 15% (long term capital gains tax)! Otherwise, I’d have to pay 28% in federal income tax on short term capital gains.

And so I bought 24 shares of SPY at around $84, and watched the stock dive to $70 in March to my dismay. I stayed strong though, and patiently waited for SPY to finish this year around $112! With the $550 in after tax proceeds, I’ve bought 12 gifts for family and friends.

Now, if I only had millions to invest last December!

Thanks,

Reb

Almost everything is on sale this season. For example, when I “saved” $20 on a purchase, I paid myself $20 and deposited into my IRA. That money will earn interest and I am sure I’ll appreciate having it later in life, whereas Christmas gifts provide short term appreciation.

I also used my CC for all purchases because it earns cash-back, which is like having an additional discount. I paid the card off every week which makes it feel like using a debit card.

I let my AT&T contract expire ($65/month not including fees or taxes, 900 minutes and 200 texts, no data), bought a used Verizon World Blackberry on my local Craigslist and got a prepaid plan ($30/month, no fees or taxes, 1200 minutes and texts, 20 mb of data, NO CONTRACT) with Plans Plus which allows you to use any Verizon phone (unlike Straight Talk.) Since Blackberry uses a proprietary browser, I went to Howard Forums which has a huge Plans Plus community to get advice on loading another browser to my phone.

Savings: over $40 / month. And no contract!

2. Gift for relatives: those delicious, overpriced, sugar-coated nuts you see at the fairs/malls

Via my chef friend: 6 cups almonds (or any kind of nut you want), 1 egg and TONS of cinnamon and sugar. Mix it on the stove, then stick it in the oven @350 for 45minutes to an hour.

Savings: around $60 that would usually go to the nieces and nephews. Plus over 1-2 hours saved in shopping time (which is never fun during the holidays)! Just head to Costco for the nuts and $25 should cover as many relatives as you have.

3. Gift for parents: Getting a job somewhat close to home! (and free financial planning help & annuity payments from their daughter)

First, they don’t have to support me out of college (whew!) and second, they can see me time to time as I’m only in the next state over (or two, wherever Utah is in relation to Colorado..:).
Also, my employer offers free Ayco financial services for me and relatives- I’ll try to get them some good financial advice. They need it!:)

Savings: stress for everyone. Me too, because living at home + no salary = BIG headache. Plus, they don’t know it but my getting a job means that I can support my parents on my income so whatever $200/month works out to be is their present.

4. Gift for sister: Planning a scuba diving getaway to Miami during spring break under $500.

She’ll be paying for it but I’ll have to a trip <$500! Read: She’s a very broke bootstrapping business owner. This is probably the present I’ve spent the most time on…
Step 1: Free airfare.
Amtrak was surprisingly expensive with many stops and her husband frowned on the hitchhiking option I proposed (plus, there wouldn’t be that much time there to spend after that). Greyhound was cheaper, around $250 roundtrip but who wants to spend 18 hours in a bus (it’s a cheap vacation, but still a vacation)! My first answer: Southwest airfare. Roundtrip came to ~$370 from DEN to MIA. Free airfare is the best, though. I almost signed her up for the Chase United Visa card to get 25000 points (enough for a domestic roundtrip), inspiration from http://chrisguillebeau.com/3×5/the-5-million-frequent-flyer-mile-challenge/. At the last minute, though, her husband dug up 24,480 used points on his card. Whee!
Step 2: Free lodging via Coachsurfing
Once again, her husband didn’t feel great about 2 girls (one of them being his wife) staying on stranger’s coaches till I showed him the ratings, verifications, and female host only option on Coachsurfing. Check.
Step 3: More fun = more research.
To find the best scuba operator, I went to PADI.com (PADI is the official scuba regulatory body) and found which Miami scuba shops had 5 star rankings which is based on shop reputation, safety and overall experience. You don’t want to skimp on your scuba experience- it’s not worth it, trust me. Then I found the cheapest option! She’ll be doing the Discover Scuba course and I’ll be getting my Advanced Open Water Certification. I looked up a friend in Colorado to give her a $20 pool session so she can get used to the scuba experience.
We’ll also be renting out bikes instead of cars to get a tour of the city. That will hopefully be more fun and cheaper!

Total Budget: $500
Airfare: Free, Lodging: Free, Discover Scuba cost: ~$200, Bike rentals: $30, Food: $200, Nightclub & Misc: $70

Savings: All inclusive scuba diving vacations run around $8000 from my local scuba shop so total savings is around $7500.

I elected to receive Amazon gift codes for my counted coins. The free trial for Amazon Prime during the month before Christmas enabled me to take advantage of the various deals without the need to meet a minimum balance for free shipping. I was able to buy some great DVDs during the great Amex sponsored black Friday deals for only $2 with free 2-day shipping!

Hopefully win this Flip camera with these tips!

In previous years, I have also opted for the gift of “time” in lieu of money. I created a website for one family member. Performed x number of hours of house/yard work for another. There are practically countless ways that you can give a loved one a “gift” that will be extremely meaningful, even when it is not something tangible that they actually have to open, and that you had to spend money on.