The holidays are awesome until they become a debt inducing nightmare. The glitter, lights, and sentimental commercials are enough to get even the strongest willed human to dive head-first into a consumerism frenzy. Instead of being about family and great food {which even that can get a little too expensive}, it tends to get overshadowed by a pressure to buy, give, and overspend your way into the New Year.
Instead of resolving to eat beans and rice for six months just to pay for holiday over-spending, here’s some tips that will hopefully keep us all well within our budgets:
- Make a list. Life is just better with lists. List all of the people you need to give gifts {be realistic} and set a dollar amount for each person. Does it add up to a budget you can afford? If not, trim it down BEFORE you head on your way.
- Stick to cash only. This is probably the easiest way to ensure that you live within your means this holiday season. If you want to do online shopping, get a prepaid visa {that you bought with cash}.
- Equal is not always better. Don’t feel like you have to spend the same on your toddler as you do on your teen. Money and gifts does not equate to love, so no need to worry you love one over the other. Older kids have higher priced items–get the iPod and the Barbie and call it good.
- Store-bought is not always better. Homemade gifts may feel somehow sub-par, but they aren’t. They are affordable gestures of friendship, in fact, I might embroider pillows with that exact sentiment on it for my holiday gifts this year. 🙂
- Budget for entertainment costs. Feeding people costs a lot of money. Make sure to budget for that before you decide to host a holiday soiree {or, better yet, consider a potluck in your budgeting}.
- Stay out of the stores after the holidays if you have hit your budget. Yes, the sales are good, but $20 worth of goods is still $20 over-budget.
- Find the motivation behind overspending. This one is about to get deep, so brace yourself. Why are you so committed to over-buying? Are you trying to make something up to your kids? Are you compensating for a crappy childhood? Are you trying to live a life beyond your means to impress other people? Figure out what is at the root, and fix that problem instead.
- Comparison shop. Shop the ads and online before you ever hit the stores. Know exactly what is a good deal and what isn’t. That way, you can at least get the most bang for your buck. Plus, comparison shopping while you sit in your jammies and sip hot cider is pretty awesome.
- Create a holiday savings account. It might be too late to use it this year, but go to the bank and set up a separate account that has money automatically transferred from your checking each month. That way, come holiday time, you’ll have money set aside. Try to resist the urge to even look at that money throughout the year too.
- Fill your days with activities that cost little to nothing, but keep you out of the stores. Try to watch all of your favorite Christmas movies before the season is over, or play a different board game with the kids every night from the day after Thanksgiving up to Christmas. Those distractions will actually become some of your best memories.
How do you stay on budget during the Holidays?
~Mavis
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Kathy says
Oh this is so simple for me. I work nights, including weekends so no entertaining during the holidays. I also head out to stores with a set amount of cash and if I don’t have enough, oh well. Most gifts are from the heart meaning handmade or homemade. A big plus is that if I do buy for someone, it’s gotten by Nov. 1. Except for 1 crochet project for my youngest sister and an awesome cake-like orange (fresh juice and zest) cookie, I’m pretty much done.
Mavis says
I love that you’re so on top of it. I’m impressed!
Cheyanne says
I’m crocheting gifts for my immediate family this year as well! I’m not nearly as on top of it though! I just finished a shawl for my mom last night though. 🙂
Cheyanne says
Last year I read an article about a town in China that makes 60% of the world’s Christmas decorations and the conditions the laborers were working in. I decided that I would go (at least) a year without buying a brand new Christmas decoration, card, gift wrap, etc. So far, I’m really happy with my decision. I even expanded it to include Halloween, etc and have saved quite a bit of money so far. I bought 100 Christmas cards for under $3 at the thrift store!
Deborah says
I started making Christmas gifts after CHRISTmas last year. I’ve been making aprons for everyone. I’ll be making sweet breads or jerky for the guys. I wanted to make some homemade lye soap, but time has gotten away from me and it won’t have time to cure enough for Christmas.
Jen Y says
I used to always forget about budgeting for food & postage.
We love having favorite foods for the week between Christmas & New Years so now I try to buy ahead some things as I shop in the weeks leading up the holiday. I also always plan ahead for postage on sending packages & cards.
Carla says
Several years ago I told the adults I was not giving them Christmas gifts. I like to buy something when I see it that is right for the person and give it right away. I also give more to charities at Christmas cause they need it and my family doesn’t. I do give the kids in the family (nieces and nephews) money. I have no idea what kids these days want OR should have. Christmas is a lot less stressful now and I can enjoy everyone’s company without being exhausted from Christmas shopping. It’s not all about gifts it’s about a Savior’s birth.
Kevin says
Since most of my family is in the UK, even small gifts cost an arm and a leg to mail. So instead I donate to organisations like Oxfam and Heifer and send the folks a card letting them know they donated seeds, or a mosquito net, or chickens, or half a water-buffalo! Make the money sent do double-duty as gifts and charitable donations, too.
Nicky says
Was that Gap photo taken in Bath? It looks very familiar!
Sara says
Last year, we decided to do a 4 gift Christmas for the immediate fam-something you want, something you need, something to wear, and something to read. Of course the kiddos got a couple items from Santa, but the parameters really helped us to be more conscious of what we were shopping for and the gifts were more meaningful because of it. Several years back we all decided we have too much stuff, so the adults in our extended family do a gift exchange with a $25 limit. We all bring gifts with a theme (movie night, local goods, etc.) and have a great time “stealing” gifts from each other. Of course there’s always room for the kids to make cookies or some sort of treat for grandparents, aunts, and uncles. Budget friendly and a lot less stressful 🙂
Ann says
I have overspent on our 4 children & especially our 8 grandchildren through the years. If I were starting out now, i would cut way back. I would wait till closer to their birthday & ask for a list. I would suggest a $ amount. @ tg celebration, i would ask for Christmas lists. I would choose 1 gift for each. Maybe for married couples, a couple gift. I know a lady who does this method & it seems so much easier & cheaper.