Holiday Budgeting: A Stress-Free Guide to Surviving the Season
Ah, the holidays. This season is a time of joy, love, and togetherness, but it can also be a time of significant financial stress. So many people to buy for, expensive activities, and being generally busy can be overwhelming to our schedules and our budgets.
But don’t stress yet. With a little planning and systems, we can navigate this season without breaking the bank. Let’s explore some practical tips to help create a holiday budget that allows us to enjoy the festivities without letting financial worries ruin the fun.
Know your History
The best predictor of future behavior is the past, so take a look back at last year. Even the year before if you’re an overachiever. What did you spend and on whom? Did you have a spending plan or not? How did it turn out? Did you overbuy, underbuy, go into debt? Spend some time here and discover. No shame allowed, just learning.
Set a Realistic Budget for this Year
Now evaluate your current financial situation and determining how much you can comfortably afford to spend. Be honest and realistic. Can you afford to spend what you spent last year? Did you achieve the value you expected from what you spent? Should you adjust up or down? Find your high-level number. Then break it down.
Make a List. Check It Twice
Using last year’s actuals and this year’s expectations, create a list of holiday expenses, including gifts, decorations, travel, food, and entertainment. Having a detailed list will provide a clear picture of where your money needs to go and prevent overspending on impulse buys.
Plan Your Gift-Giving
Instead of buying gifts for everyone you know, consider organizing a Secret Santa gift exchange or setting up a gift-giving rotation within your family and friend circles.
Don’t stress over seeming like the cheap one here. If you have a big family or friend group, I promise you’re not the only one feeling the strain of holiday spending. Between the two of us, my husband and I have 36 close family members in total… when one sibling suggested drawing names for Christmas gifts a few years ago, it was a game changer for all of our budgets. Plus when you buy for fewer people, you can afford better quality gifts.
Also consider homemade gifts, which can be thoughtful and budget-friendly. And they’re often the best gifts, so if you strive to be the straight-A student of gift givers, give it a go and wow your people.
Take Advantage of Sales and Discounts
This tip comes with a heavy asterisk. Holiday sales, discounts, and special offers both online and in stores can save some cash. However, be mindful not to be swayed by discounts into buying items you don't need because that can sink your budget fast.
This is my struggle every year. On the quest for gifts for others I always always find something for myself that I cannot live without. After years of budget busting oopsies, I’m more aware of this and instead of hitting “add to cart,” when I see something for myself I hit “share” to send to someone who might want a good idea for me.
Save on Decorations
Don’t sleep on this, y’all. Get creative and save big. Go out into nature and trim your evergreen bushes to create garland or centerpieces. Repurpose and upcycle wherever possible. Hit the goodwill for some gently used decor. Or reuse your decor from last year instead of buying new.
Track Your Expenses
Use a simple spreadsheet, your notes app, or even just pen & paper to track your holiday spending as you purchase. Monitor and update throughout the season to help you stay within your budget. Plan your work and work your plan.
Avoid Credit Card Debt
While it might be tempting to use credit cards for holiday shopping, it can lead to a cycle of debt, so be mindful. Try to use cash or your debit card for purchases, and if you must use a credit card, make sure you can pay off the balance in full by the payment due date. Must emphasize this — IN FULL, not minimum.
Plan Affordable Activities
The fact is that this season is just plain expensive after it all adds up. Look for free or low-cost holiday activities in your area to shave off some costs without sacrificing joy. Community tree lighting ceremonies, local concerts, or holiday markets are great options. These events can provide festive experiences without draining your wallet. For my crew, we seek out the best neighborhoods for lights and make a point to drive through them every year blasting Christmas songs during the ride. It’s our favorite tradition and completely free.
Practice Gratitude
Cheesiness incoming... Remember the reason for the season. Spending quality time with loved ones, expressing gratitude, and creating meaningful memories is literally the whole entire point. Focus on the mindful joy of togetherness rather than the material aspects of the holiday, and you may find that the true spirit of the season doesn't cost a single cent.
By setting a realistic budget, planning your expenses, getting creative, and staying mindful, you can enjoy a joyful and financially feasible holiday season. So let’s go make the most of the festivities without going broke in the process. Happy budgeting and happy holidays!
