A Guide to Stress-Free Holiday Spending: Keep Your Budget in Check
- Berley B, MS
- Oct 29, 2023
- 4 min read
The holiday season is upon us, and with it comes the promise celebrations and a bit or a whole lot of financial pressure. To make sure your holidays are all about happiness and not financial stress, I'm sharing my top 12 tips on how to prepare for holiday spending.
1. Set a Budget
Your first step toward a successful holiday season is setting a clear budget. Determine how much you can comfortably spend on gifts, decorations, travel, and entertaining. Having a budget in place will keep you on track and help you avoid overspending.
2. Create a Gift List
Make a list of the people you want to buy gifts for and what you'd like to get them. This not only keeps you organized but also prevents impulse purchases. Remember, thoughtful gifts often mean more than expensive ones. My youngest niece's birthday is soon here, I kept asking her for her wish list, and she asks, "why can't someone make me something nice?" That is coming from a 7-year old. So, you know what I did? Made her a fall/halloween door sign! I hope she loves it as much as I do!
3. Start Early
Start your holiday shopping early. Starting ahead of time gives you the advantage of finding the best deals and avoiding the last-minute rush. Plus, you'll have a better selection of gifts and can take advantage of sales and discounts.
4. Hunt for Deals
Use holiday sales, coupons, and discounts. Subscribe to newsletters from your favorite stores, use cashback apps, and keep an eye out for online deals. Saving a bit on each purchase can add up quickly and significantly.
5. Consider DIY Gifts
Homemade gifts can be both heartfelt and cost-effective. Whether it's creating a handmade photo album, or crafting something unique like I did for my niece, these gifts can be more meaningful than store-bought ones.
6. Keep Tabs on Your Spending
Keep a record of your holiday expenses. This will help you stay within your budget and avoid financial surprises. Whether you use an app or a simple notepad, tracking your spending is crucial. I use our Personal Finance Planner to track my spending, create budgets, and as my calendar.
7. Opt for Cash or Debit Cards
Consider using cash or debit cards for your holiday shopping. This way, you won't accumulate debt with high-interest rates, keeping you within your budget. I know I've always said to maximize your credit cards rewards, but if you haven't mastered how to properly use your credit cards and paying them in full every month, the Holiday Season is not when to start.
8. Curb Impulse Buying
Stick to your list and avoid impulsive purchases. Take a moment to think about whether a purchase is necessary and fits within your budget. Don't give in to last-minute temptations. Use the 24-hour rule- add it to your cart if you're shopping online, keep it there for 24 hours, and if you feel like it's a must, then go for it. The rule also applies to in-store shopping.
9. Plan for Travel Costs
If your holidays involve travel, plan and book your trips in advance to get the best deals on flights, accommodations, and transportation. Planning ahead can save you a significant amount. I travel yearly for my birthday, and my birthday and Christmas could have just been on the same day for as close they are to each other, so I must plan my birthday trip way in advance to get the best deal. Have a budget in mind, and stick to it. Trust me, it is worth it because expenses just creep in on you.
10. Watch Small Expenses
The little things, like dining out frequently or grabbing coffee on the go, can add up quickly. During the holiday season, consider cutting back on these small indulgences to save more. I'm not a believer of cutting all small expenses in your life that makes you happy, I'm more of "find ways to make more money"! However, during the holiday seasons, I'd say create a budget for those small indulgences- either add a set amount to your Starbucks app to stay on track. My guilty pleasure is Starbucks Caramel Brûlée Latte, so during the Christmas season, I just add a set amount to my Starbucks app, but once I run out of money on there, I use my Keurig at home!
11. Reevaluate Traditions
While traditions are important, it's okay to reevaluate and make adjustments that align with your budget. If fancy dinners, Happy Hours every single day or week aren't part of your budget, it is okay to say no to friends and families. You can suggest to a BYOB and cook as friends.
12. Save for Next Year
As soon as the holidays are over, start saving for the next year. Create a dedicated savings account and make regular contributions. This will make budgeting for the next holiday season much easier. SAVE IN A HIGH YIELD SAVINGS ACCOUNT!
In conclusion, responsible holiday spending is all about planning, discipline, and mindful choices. By setting a budget, creating a list, and seeking out deals, you can enjoy the holiday season without the financial stress. Remember, it's the time spent with loved ones that truly matters, not the money spent. So, follow these tips, and have a joyful, budget-friendly holiday season!
The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
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