Sticking to Your Budget During the Holidays

By Last Updated: November 10, 2023
Sticking to Your Budget During the Holidays

The Christmas season is a time of joy that people look forward to every year. However, it can also be a period of financial stress as many of us feel the pressure to spend on gifts, decorations, and festive gatherings. Holiday spending can quickly spiral out of control, often leading to financial strain in the new year. Sticking to your budget during the holidays can be challenging, but it’s possible with some forethought and effort. Here are some practical tips for sticking to your budget during the holidays.

  • Start early – This means not just planning your holiday budget, but also saving money throughout the year and making wise spending choices.
  • Make a list (and check it twice!) –  Sure, gifts are on the lists, but don’t forget items like airline tickets, gas, grocery bills, festive clothing, and décor.
  • Set reasonable spending limits for each person or category – Did the word “reasonable” resonate with you? Don’t set a limit that you know you’ll exceed. There’s no point in making a worthless budget. If gifting is your love language, go big and scale back in other areas. Just be honest to yourself.
  • Find the deals and shop around – Don’t just buy the first thing you see. The internet is your friend. Use it to compare prices and never make a purchase without a discount code.
  • Consider gifts from the heart – Homemade gifts or gifts of your time and service are often more personal and meaningful than store-bought gifts, and they can save you a lot of money.
  • Use cash instead of credit cards. When you use cash, you’re more likely to be mindful of your spending and avoid impulse purchases.
  • Avoid shopping when you’re hungry or tired. When you’re not in a good mood, you’re more likely to make impulse purchases and overspend just to complete the task.
  • Don’t be afraid to say no to invitations or requests. If you’re on a tight budget, it’s okay to say no to holiday parties or events that you can’t afford or leave you strapped for time.

Don’t add unnecessary additional stress to the holidays by going into debt. The holidays should be a time of joy and celebration, not financial stress. By setting a realistic budget, planning ahead, and being mindful of your spending, you can enjoy the Christmas season without breaking the bank.

Q: What should I do if I overspend during the holidays?

A: Cut back on other expenses. Look for ways to save money on your everyday expenses, such as eating out less or canceling unused subscriptions. Another option would be to delay non-essential purchases. If you’re really struggling to make ends meet, it may be best to delay non-essential purchases until after the holidays. A third option would be to create a repayment plan. Figure out how much you need to repay and how long it will take.

Have more questions? Contact Us

Missie Beach, CFP®, CDFA®
Senior Financial Advisor

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