Most of us have resigned to going for broke when it comes to the holiday season. We often overlook just how many people we need to buy for, just how much food we need buy, and all the parties we need to attend. Try budgeting first to see how much you have available to spend and remember all the small details that add up. We tend to miss minor expenses like postage for Christmas cards, ingredients for cookie exchanges, home décor, travel expenses, etc. Most importantly, set a realistic budget. Don’t make it too tight.
Make a list of everyone you want to buy gifts for. Allocate the amount you’ve budgeted for gifts to between each person. You may have to cross off some people or spend less than what you’d like if you’re budget doesn’t quite cover your preferences. However, once you’ve decided on the amounts for each person, be careful to not go over that amount. Focus on the amount, not the items.
Use Cash
For those who struggle with racking up debt and overspending during Christmas, you can set a rule to use cash only. Once the cash is spent, be done with shopping. Spending cash also activates pain sensors in your brain that will discourage you from going over budget. Keep track of all your spending to ensure your money’s being spent properly.
Everyone gets busy and winds up last-minute shopping. This often results in paying top dollar for your items or having to choose different gifts that may be more costly than the originally intended gift. Or maybe you overlook a holiday party that you signed up to bring cookies to. You’ve already purchased the ingredients, but you’re out of time so you run to the bakery instead. Planning out your schedule and allotting time for all the extra trips and events can wind up saving you a good deal of money.
There’s a lot of options for customized and beautifully designed e-cards these days for little to no cost. No postage, either.
The holiday season makes us more generous to everyone, including ourselves. We splurge for the seasonal holiday lattes, the little gifts we see and want for ourselves—everyone does it. While you should definitely indulge every once in a while, try to avoid making it a regular behavior. Another helpful tip to avoid overspending is to write yourself into your Christmas budget.