Yay! The holiday season is here! At this time of year, we’re also embracing joy, togetherness and sometimes a little bit of financial stress. Got to do things a little differently. Using some smart planning and some smart decision making, you can handle the holidays without leaving your wallet barren. Since you have this far, let’s delve right into some practical tips and tricks that’ll keep your spirits high, and your bankroll intact.
Why Holiday Spending Gets Out of Control
We’ve all been there: Determined to stick to a budget, sales, last minute gifts, the fancy wrapping paper sneak into your cart. The truth? Emotional factors, societal pressures and simply the thrill of it all can cause spending to spiral during the holidays.
The Emotional Appeal of Holiday Shopping
Holidays make us emotional. Remember that limitededition ornament? It’s a memory waiting to happen. It’s not just an ornament. It’s easy to overspend when there’s an emotional connection, when we can talk ourselves into thinking it’s worth the price of happiness it might buy.
FOMO and Social Media
Let’s face it: While seeing friends and influencers post their perfectly decorated homes, lavish gifts and gourmet feasts online can tempt anyone to feel FOMO (fear of missing out). Even without any external influence, you might find yourself feeling like you have to keep up, even to the point that you’re blowing your budget.
Setting a Realistic Holiday Budget
While the idea of budgeting might sound like the fun police, it’s your best friend when it comes to staying financially stress free. Now, here’s how you set one that actually works.
Calculate Your Total Available Funds
First, determine how much money you can realistically spend, before you make a list (and definitely before checking it twice). This would comprise savings, bonuses and any other forms of extra income you receive during the season.
Break It Down
Divide your budget into categories like:
- Gifts
- Decorations
- Food and beverages
- Travel expenses
Miscellaneous because things always come up that you didn’t expect.
The 50-30-20 Rule for Holidays
Consider applying the popular 50-30-20 budgeting rule:
– on essentials, like food, travel, etc, gives 50%
– 30% on gifts and decorations (non essentials).
And 20% of your savings flow into savings, including even the holidays.
Creative Ways to Save on Gifts
You don’t have to go too blow your bank account when out shopping for gifts. A price tag, again, is no match for thoughtfulness.
Embrace DIY Gifting
There is nothing like a handmade gift that you can’t buy money can buy. Homemade candles or baked goods or some photo album with precious memories. This is why these gifts tend to be more meaningful.
Use Cashback Apps and Discount Sites
To find deals and get cashback for the purchases you make, check out apps like Rakuten (formerly a site known as Buy.com), Honey, or RetailMeNot. Flash Sales and Promo Codes! Watch!
Group Gifts for Big-Ticket Items
Buying a nice piece of technology or experience that’s at the top of someone’s ‘want’ list? If you know them, ask friends or family to give together for a group gift. They will like it and its cheaper.
Tricks to Cut Costs on Decorations
It doesn’t have to break the bank.
Shop Off-Season
Though it’s too late for this year, post season clearance holiday decor sales are clever on the future. We can save up to 80% on winter decorations such as ornaments, lights, and wreaths.
Reuse and Upcycle
Don’t have a ton to work with? Get creative with what you can. For instance, use mason jars to disguise their purpose as candle holders and repurpose leftover ribbon and more to make DIY garlands.
Nature-Inspired Decor
Pinecones, greenery, and branches are all eco friendly and budget friendly decorations. They give your house a rustic, charming kind of vibe too.
Hosting Holiday Gatherings Without Breaking the Bank
It can be daunting (and expensive), but it doesn’t have to be. A few minutes of planning makes the difference.
Potluck-Style Dinners
Invite guests to bring something to share (pot luck). This is actually good on the wallet and adds variety to the menu.
Stick to Simple Menus
It’ll be great to have a five course dinner, but no one is expecting Michelin star meals. Choose simple, yummy, economical ingredient recipes.
DIY Entertainment
Instead of hiring entertainment or spending money on expensive games, think about playing games by renting board games and playing karaoke or a holiday movie marathon. When a person quips about its being about the memories, not the cost, it’s not something meant to be denied, but necessary.
Navigating Holiday Travel on a Budget
Holiday travel can be expensive no matter whether you’re heading to see loved ones or going on vacation. To keep it affordable, here’s how.
Book Early or Last Minute
The best rates also mean booking well in advance. But, on the flip side, last-minute deals can save you money if you’re flexible with dates and destinations.
Use Points and Miles
It’s time to cash in on those travel rewards. Look in your credit card or your airline loyalty program’s points or miles you can use.
Consider Alternative Transportation
Usually, simply driving instead of flying or taking a train instead of a rental car is going to save you a fortune.
Mental Health and Mindful Spending
Isolate yourself in the Christmas madness, but don’t forget to look after your mental health. Distilled, stress and anxiety can make you act on impulse.
The Power of “No”
That is fine, you can say no to expensive plans or traditions that do not line up with your budget. Your friends and family that are there for you will understand.
Focus on Experiences Over Things
According to research, experiences create more long lasting happiness than material possessions. Instead of over the top gifts, spend on outings, activities or quality time spent together.
Practice Gratitude
Give yourself a moment to appreciate what you already have. Gratitude can change your outlook and give you the mindset to look at what you already have instead of what you need to buy.
Wrapping It All Up
Perhaps being financially savvy during the holidays doesn’t have to be about sacrificing joy. All it is, is trying to find the right balance between spending and celebrating in a way that doesn’t feel empty. You don’t need to enjoy the season with days of financial regrets in the New Year. If you do plan, get creative, and stay mindful, you can enjoy the season and everything it offers.
The best things in life are not gifts, they are your time, love and presence. Happy holidays! 🎄
Frotpox 