Do you hear that? It’s the sound of holiday cheer, which is just around the corner. Soon the weather will be cooler, holiday decorations will start appearing around town, and holiday music will be playing on the radio. And, while that all sounds so cheerful, it can also start to feel overwhelming. By planning ahead and making mindful money choices, you can enjoy the season without starting the new year with financial regret. Here are a few ways to keep your holiday budget on track.
Create a Holiday Spending Plan
When creating a holiday spending plan, start by deciding how much you can comfortably spend without affecting your financial goals. Once you have decided on the amount, then break that amount into categories such as gifts, travel, food, décor and entertainment, such as pictures with Santa or other holiday exhibits. Then, take it a step further and itemize each category to guide as you start shopping and spending money.
Plan Purchases in Advance
Make a detailed list of who you plan to buy for, what you plan to purchase, and when you plan to make the purchase. Shopping with intention will help to avoid impulse buying, which can be incentivizing especially during the holiday season. If it is not on your list or in your budget, then leave it out of your shopping cart.
Consider Alternative Gift Options
Thoughtful gifts do not need to equate to expensive gifts. Often, my husband and I will create themed gift baskets to give to a family to create a group gift option. We have found that this is less costly and enjoyed by all. Consider Secret Santa exchanges or experience-based presents to help reduce costs while still creating meaningful and lasting memories for the recipient. Or, if you are the creative type (like my mom), you may also consider a handmade gift. Although this may require more time, it can help reduce spending while still giving generously through thought and effort.
The bottom line is that the holidays should bring enjoyment and not financial stress. By planning ahead and knowing where your money is going by shopping intentionally, you can look forward to a joyful holiday season and enter the new year with peace of mind.
