REDUCING FINANCIAL STRESS THIS HOLIDAY SEASON

YOU DO NOT NEED TO SPEND A LOT OF MONEY

The holidays can be the most wonderful time of the year. But, they can also be one of the most stressful times of the year if you are not careful. It’s important to remind ourselves that we do not need to spend a lot of money during the holidays to be able to enjoy the season. Often some of the most enjoyable parts cost little to no money.

HAVE A BUDGET

It can be so easy to overspend during the holidays if you do not have a budget. The more detailed the budget is, the less likely you will be stressed about the purchases you are making. It feels good when you make a purchase that matches the amount you had budgeted. Knowing that you have money set aside feels so much better than just buying items and figuring it out later. There are so many things that we often purchase during the holidays beyond gifts. So, it is important to have a budget that includes all of those other costs.

Don’t forget all the ancillary holiday spending items you might have. Those might be things such as Christmas cards, stamps, gift bags, wrapping paper, gift tags, ingredients for baking and special meals, and special holiday drinks such as sparkling apple cider, or special wine.  There might also be seasonal activities you would like to attend that charge a fee. If you don’t account for these, each time another one of these costs comes up they can cause stress. By accounting for them upfront, you can determine what you can and cannot afford and can reduce the amount of stress that comes from not considering all of the costs that may come up 

STICK TO YOUR BUDGET

It is really important to do the best you can to stick to the amounts that you established in your budget. Spending a little extra here and there can add up very quickly especially if you have quite a few individuals on your shopping list. It can be tempting to want to spend a little bit more or buy some extra things to add to a gift. If you are not sure that you have some extra funds to pull from, it won’t be worth it in the long run. It might feel good at the moment to spend that extra money on someone that is important to you. But if you realize in the end that you spent more than you could afford it won’t be worth it.

SHOPPING ONLINE TO AVOID IMPULSE PURCHASES

I find it much easier to grab things that you did not intend to pick up when out shopping in person. It can be even more difficult to avoid impulse purchases during the holiday season. So, if this is a struggle for you, consider making your holiday purchases online. Another benefit of shopping online is that you can easily comparison shop without having to go store to store.

TRACK YOUR SPENDING

If you are not tracking your holiday purchases against your budget you will most likely have a difficult time sticking to your budget. It’s a good idea to record your purchases against your budget as soon as you get home from a shopping trip, or right after you purchase something online. We always think we will remember what we have already purchased, and how much we have left to spend. But without tracking it, it’s very difficult to remember what has already been purchased and how much is left to spend for various people.

When you go shopping, bring your most recently updated holiday budget with you. It makes it so much easier to remember who you still need to shop for and how much you have available to spend. It stinks to find and purchase a great gift for someone only to discover you already purchased them a gift but had forgotten.

THE VALUE OF A GIFT HAS NO DIRECT RELATIONSHIP TO HOW MUCH YOU CARE FOR SOMEONE

Sometimes it can be hard to hold back on the amount we spend on certain individuals. We might feel like we need to get them what we consider a really great or expensive gift. If that is something you want to do and you can afford it, then that’s great. But, it is never worth putting yourself in a stressful financial situation to purchase a gift for someone that you truly cannot afford. The value of a gift that you purchase for someone has no direct relationship to how much you care about that person.

No one should make you feel like you need to give them excessive gifts to show how much you care about them. Just like with everything, there is always something bigger and better. Try not to compare the gifts you give to those that others are giving. A gift is to show that you appreciate and care about someone.  It’s not about showing how much money you can spend on them.

CREATE YOUR 2023 BUDGET NOW

If you feel like you could have been better prepared than you were this year, take that opportunity to start preparing for next year. What expenses caused you to go over budget? Think about the costs that came up that you were not prepared for and decide if they can fit into next year’s budget. If they do not fit into the budget, take time now to think of alternatives. By creating a budget right now while everything is fresh in your mind, you can create a much more detailed budget for next year. Having your budget set at the beginning of the year also allows you plenty of time to save up the amount that you intend to spend.

Thanks so much for checking in! If you would like to hear the podcast version of this topic to check out Lola’s Frugal Life Podcast! Also, be sure to check out my other blog posts on this site!

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