You may have noticed a lighter-than-normal posting rate here at Frugal Dad over the last couple days.  My mom returned home from the hospital on Tuesday, some 102 days after her surgery in early September.  What a long three months it was for her!

We are so happy to have Mom home, but there were many preparations to make (a few very last-minute), so I haven’t had much time to write.  I’ve also been busy finishing my Christmas shopping and planning for a homecoming meal for my mom and extended family.

I’ve got some exciting things planned for the blog in 2009.  Next Monday is my one-year anniversary here at Frugal Dad, and I have some exciting things planned to celebrate.  In fact, I’m dedicating all of next week’s posts to celebrating the past year, and for laying out my plans for 2009.  I know many of us are in a lull between Christmas and the New Year, but I hope you will check out the posts.

OK, back to my family.  I wish you all a very Merry Christmas, and I look forward to celebrating the New Year with you next week.

Last week my daughter participated in a Santa’s Workshop event at school.  It is an annual event where children and their parents discuss a shopping budget, and the kids are allowed to walk through “Santa’s workshop” selecting gifts for friends and family while spending up to their established cash limit.  Parents send in money the day of the event, and teachers help kids with the math to make sure they don’t overrun their budgets.

I know a few adults who could benefit from similar restraint, especially this time of year!  With only two days until Christmas I bet there are at least a few of you out there thinking, “I don’t have this person enough stuff to open Christmas morning,” or “I need to buy my Mom another present to match the number I bought Dad.” Believe me, my wife and I are having the same discussions.  The problem is we have already spent our Christmas budget for this year, so we are officially finished shopping.  No last minute trips to Walmart to charge up a few “guilt” gifts this year.

Christmas shopping was a much more pleasant experience this year with cash.  After last Christmas my wife and I vowed to save all year long and spend cash at Christmas.  We managed to pull it off by setting up a $25 transfer to our ING Direct Christmas Fund each paycheck.  We also tossed in some “found” money including a small tax refund and wound up with nearly $600 for Christmas shopping and our annual giving tradition.

If you are already suffering from the worry over Christmas debt I highly recommend setting up your own high yield savings account at ING Direct and stashing a little away each paycheck towards next year.  It makes the entire experience more joyful not to have credit card bills rolling in right after ringing in the New Year.

Here’s what our automatic savings plan with ING Direct looks like:

Screen capture from our “Christmas Fund” at ING Direct

Notice that our account balance is already back up to $79.25 after contributions made since our November withdrawal.  As an added bonus, we also earned a little over $15 in interest last year–enough to add a CD or book as a stocking stuffer.  When the time comes next Christmas we’ll simply transfer the balance of our Christmas Fund back to our checking account, subtract a little for giving, and enjoy a cash-only shopping trip with the rest.

There is plenty of career advice floating around the web offering tips for how to get a raise.  Ideas range from proving cost savings to your boss thanks to your efforts, or cross training in a particular specialization that makes you stand out from coworkers.  But what happens after you receive the raise?  If you are like most people the slight bump in your paycheck will be frittered away thanks to an equal bump in your lifestyle.  With 2009 right around the corner, hopefully at least a couple of you are expecting a raise at work.  Here are a few ways to make that raise really effective.

Put a freeze on your lifestyle, but not completely.  I like the idea of holding expenses after getting a raise and pocketing the entire amount into a savings account at ING Direct.  However, that isn’t very realistic.  Besides, you likely earned that raise through hard work, and should enjoy at least a portion of it.  I recommend increasing your savings contributions to various savings vehicles (see below) by about half of the amount of your new raise.  With the remaining half, go ahead and sign up for that Netflix account, or gym membership, or buy that new golf putter you’ve been eying.  Success with personal finances is about finding balance.

Where to save half of the new raise.  The first place to start is your 401(k) plan at work.  Chances are you are contributing a percentage of your income, so this boost in annual salary will automatically boost your 401(k) contributions.  Still, if you aren’t contributing through a match, I consider boosting another percentage point or two using proceeds from your new raise to obtain the match.

If you are already contributing enough to receive a match in your 401(k), consider adding the remaining 50% of your raise amount to a Roth IRA.  The earnings here grow tax-free, and you can withdraw your contributions any time without penalty.  If you have already maxed out IRA contributions for the current tax year then simply dump half that raise in your taxable savings account, such as a high yield online savings account or brokerage account.  The idea is to get the money out of your primary checking account, where it will just be frittered away in DVDs and extra stops at Starbucks (at least that’s where mine would probably go!).

Should I accept a raise, or a bonus? Some companies are offering bonuses in lieu of raises this year to lessen the increased salary budget for next year.  If given the option, take a raise over a bonus, even though the lump sum from a bonus looks appealing.  Raises are permanent (well, as permanent as anything in the job market can be these days).  Things like matching retirement funds, life insurance proceeds, etc. are based on your annual salary, and with some creative accounting companies are often able to avoid these increased expenses by offering year end bonuses instead of increasing your salary with a raise.

Time’s almost up! Here are a few last minute gift ideas that don’t require standing in line on Christmas Eve.  My personal favorite is an Amazon gift card, which may be printed out or emailed to the recipient.  You can buy just about anything at Amazon these days–books, DVDs, electronics, even groceries!

Amazon Gift Card.  Amazon.com used to be the one-stop shop for buying books online. In fact, it still is.  But Amazon now offers so much more!  I have bought everything from packs of diapers to household appliances from Amazon, and I’m sure an Amazon gift certificate would go a long way towards pleasing someone on your list.  They offer several options for procrastinators like print from home or email delivery, so no waiting on a gift card via snail mail–perfect for last minute shopping.

Netflix Membership.  Plans start at $4.99 a month, and are a wonderful last-minute gift idea for the movie buff in your life.  Simply select the plan, length of time you would like to gift and you’re all set.

Six Months of Flowers.  Last Mother’s Day I recommended ProFlowers and had good feedback from readers. I have used them for years and find both their flowers and customer service to be top notch!  This year I’m ordering the “Six Months of Flowers” subscription for my wife (they also offer a 3-month and 12-month plan), which she can enjoy from December to May.  Here’s a look at the next six months selection of flowers (ProFlowers even tosses in a beautiful free vase with your first shipment):

DECEMBER: mix of Stargazer lilies, iris, Gerbera daisies, and mums
JANUARY: a mix of Asiatic lilies and blue iris
FEBRUARY: fragrant Oriental lilies in assorted colors
MARCH: 20 stems of fresh, vibrant tulips in various colors
APRIL: 20 stems of bold, blue iris
MAY: lilies, delphinium, asters, snapdragons, and mums

*Guys, have these delivered to the office, unbox them and take them home once a month to score some major brownie points!

Magazine Subscription.  My first introduction to the world of personal finance was taking up an interest in magazines like Kiplinger’s Personal Finance, Money, and Smart Money.  All offer great personal finance information on topics such as debt reduction, investing, household finances, etc, and make a great gift for a twenty-something just starting out (I personally like Kiplingers best, but subscribe to all three).

Cash. If all else fails, give cash.  Cash is the universal gift. It can be spent anywhere that accepts money!  No worries over expiration dates, stores going bust and gift cards becoming invalid.  And one of the best things about cash is the recipient doesn’t have to spend it at all.  Maybe they can use it to add to their debt snowball, or get a jump start on an emergency fund.

The following guest post is from Elise Degrass.  Elise is a new freelance writer. She spends most of her day writing and reviewing cell phones.  She appreciates your feedback at elisedegrass@gmail.com.

We’ve all experienced shock at seeing a high cell phone bill, and the prospect of facing permanently high phone bills is daunting to many people; after all, phone conversations are an essential part of personal and business life. Rather than giving up your phone or keeping it turned off, there are some smart options that you can utilize to keep your bill low, while allowing your to retain all of the advantages that led you to use a cell phone in the first place:

Carefully Evaluate Whether Your Existing Plan is Cost Effective

Even if you’re locked into a contract with a certain provider, most of the time you can switch between various calling plans. In particular, if you have many more minutes than you need, consider moving to a lower cost plan. If you have multiple family members on the account, then you might want to look at a family plan that will provide volume discounts. For many people, a disproportionate percentage of their call time is linked to just a few people: try to coordinate cell phone providers with those you call most, as that will often all free in-network calling.

Schedule Longer Conversations in Advance

Although spontaneous conversations occur all the time, if you can anticipate longer conversations and schedule them for nights and weekends, you’re bound to save on valuable peak time minutes; check when your night minutes kick in, as it varies from plan to plan.

Resist the Temptation to Purchase Add-on Features

Most people are constantly bombarded with advertisements for upgrades on their cell phones, from ring tones to software packages. Make sure you read the fine print on these plans, as they’ll likely to continue to bill you well after the initial purchase.

Find An Affordable Text Messaging Plan

Rather than incurring an expensive per diem text messaging charge, you can often purchase a text messaging plan that will save your quite a bit when all costs are factored in. Many cell phone providers offer plans which can accommodate your level of use.

Use Alternative Methods of Communication

Having a cell phone can be convenient, but also consider utilizing inexpensive methods of communication such as Skype when you’re at your computer – that way, you can cut down on your costs while maintaining a high level of available for business clients, friends and family.