It’s hard to believe the holiday season is just around the corner once again. Stores do not waste any time in putting up all the festive displays alongside all the hundreds, if not thousands, of décor options and seasonal items to buy. It’s a little overwhelming, isn’t it? Don’t get me wrong, I love this time of year, especially Christmas, but what I don’t love are the distractions, pressure and extra stress that can come with it. The season of giving can sometimes morph into a season full of competition and expectations surrounding gift-giving.
Whether it’s shopping for the traditional family dinner or buying gifts for your child(ren), spouse/significant other, parents, in-laws, grandparents, god-children, friends, work gift exchange, etc. It’s no surprise why people go into debt during the holidays. There’s usually a lot of shopping involved, with the temptation to “go big” and spend way more than we can afford. Suddenly, the cheerful spirit of giving is dropping faster than the money in our bank account. So if we want to actually enjoy the holidays without compromising our budget, here are a few tips to start now:
1. Make a list and stick to it. Most of us probably do this already, but be sure to include everyone you intend to buy for, along with the amount you plan to spend per person. Be realistic about what items cost, add it up and write it down. This is the total amount you plan to spend on gifts. If you’re concerned you might overspend, give yourself a small buffer to add to the total. This can especially come in handy for purchasing items online that often involve shipping costs, or for that unexpected holiday party that wasn’t budgeted.
2. Set boundaries. It’s okay to opt out of some gift exchanges; it doesn’t mean you’re a Grinch. Maybe you partake in the Secret Santa at work every other year, or organize a white elephant exchange with a lower spending limit (think $10-$15 vs. $25-$30.) This is especially helpful if there are multiple gift exchanges to attend. It adds up so quick!
3. Dedicate a savings account for holiday shopping. Personally, this is how I plan for Christmas, and it works like a charm. If you haven’t already, check with your bank or credit union to create a separate account and give this account a specific name like “Christmas Fund” or “Holiday Savings,” etc. Then make a line item in your budget each month to set money aside before the holiday season. Refer to the total amount from tip #1, to figure out how much to set aside monthly (example: $600 total would be $50 per month.)
4. Shop for Christmas all year round. Get your shopping done months in advance and avoid those busy lines with this easy strategy. Maybe I’m one of the few that does this, but when it comes to buying gifts early, it really eases the stress of last-minute shopping. Look for items during regular shopping trips that would make great gifts for the loved ones on your list. You may even find some of these gifts at discount prices, given the time of year or season. Plus, with tip #3 in place, shopping throughout the year is actually possible. The funds will already be set aside, so no need to rack up debt along the way.
I get it, it’s easy to hop on the overspending bandwagon, especially this time of year. Although it’s fun to shop for those special people in your life, don’t let the pressure of keeping up with the Jones’ get you. Follow these tips to help streamline the process and as the holidays approach, you’ll be glad you did.