Making a List, Checking it Twice Holiday Planning

As soon as Thanksgiving rolls around, it’s easy to get caught up in the hype of the holidays. The warm cozy feelings, excitement, and anticipation of the holidays make spending without thinking easy, leading to overspending, paying credit card interest, and having financial struggles in the New Year.

This year, try something different and learn to enjoy the time without all the spending. Spending money isn’t the only way to have a special holiday season.

Here’s are some ideas to make the most of the season and be sensible with your finances. 

Create a Holiday Budget

Don’t go into the holidays without a budget. At this point, you know how much you’ve saved and how much extra money you’ll have over the next couple of months. Create a strict budget and list so that you stay within that budget. Avoid using credit cards and spending as you want because you’ll only pay the price after the holidays.  It will be the “interest expense gift” that keeps giving into the new year.

Last year, the average person had $1,249 in credit card debt after the holidays between gift giving, traveling, and entertainment.

Consider a Secret Santa Exchange

Consider a Secret Santa this year if you have a large group of people that you exchange gifts with. Instead of each person buying multiple gifts for everyone in attendance, pick one name out of a hat. Everyone sets a budget for gift giving, and you automatically save money by not giving as many gifts. Instead, focus on your time together. Plan ways to have fun versus giving items that get thrown in the back of a closet.

Set up an Experience versus Gift Giving

Rather than giving your kids toys they will play with for five minutes and forget about, consider setting up experiences. For example, buy memberships to local museums and zoos, plan a staycation, or even plan a family vacation for later in the year as a family gift.

Give Homemade Gifts or your Own Time

No one said gifts must be store-bought. Homemade gifts mean more and cost less. If you aren’t crafty, consider a photo collage or a video of your favorite memories with the recipient. If that doesn’t fit, consider giving your time. Think about what you’re good at and offer those services to your recipient as a gift.

Make Get Togethers Simple (and Let Everyone Pitch In)

Don’t take on all the stress (physical and financial) of hosting for the holidays. Instead, ask each of your guests to bring something. You can assign what each person brings, such as appetizers, main dishes, sides, or desserts. This way, you know you have everything covered but don’t have to pay for everything yourself.

Final Thoughts

Make your goal this holiday season to make memories, not spend money.  Somehow we all equate spending money with happiness over the holidays, but it’s unnecessary.  So this year, focus on simplifying your gift-giving, cutting down how much you spend, and instead on the time you can spend with your loved ones.

This year don’t forget to give yourself the gift of financial peace.  Embark on improving your personal finances in 2023.  Set up your free consultation today to discuss your finances and plans towards achieving your New Year’s resolutions.