Every year Christmas rolls around brining carols, presents, joy…and stress. Deep down, inside each of us, lies the potential for a big green hairy Grinch to emerge. The Christmas season is a time for family and celebration, but for many, it can also be a time of financial frenzy and stress that feels more akin to a Grinch-like robbery than a joyful occasion. So, how can you make sure that the Grinch doesn’t steal your hard-earned money and throw your holiday budget into chaos? Here are a few tips to keep your finances and your holiday joy secure.
Create a realistic budget, and STICK TO IT. Nothing triggers a grumpy Grinch more than having your budget fly off the rails. However, the first step to keeping that grumbly Grinch at bay is to have a budget in place. Start by reviewing your finances and determine how much you can comfortably spend on holiday expenses, including gifts, decorations, travel costs, meals, parties, or any other holiday-related expense. Prioritize the essentials and account for all the little extras that always come up.
The Grinch in us loves when we wait until the last minute to buy gifts. That’s when we tend to overspend and stress ourselves out. Planning your shopping in advance gives you time to research sales, compare prices, and avoid the temptation of overpriced last-minute sales gimmicks. Try making a gift list for everyone you need to buy gifts for and budget for each person. A tip for the coming year: put money aside throughout the year and look for gifts all year long, especially during holiday sales. Planning ahead allows you to put more thought into the gifts you give, making them more meaningful for you and the recipient.
Don’t be afraid to DIY some of your gifts. Handmade crafts, baked goods, photo albums, and similar things make wonderful gifts that will be cherished and can be a lot more budget friendly than some expensive store-bought items.
Limit how much you put on credit cards. Remember that credit cards are debt, a liability, and you need to be mindful of what you’re willing to take on and increase your debt. Nothing brings out the Grinch like lots of credit card debt. Credit cards make purchases quick and easy. The easiness of credit cards can also make it easy to lose track of how much you’re spending. If you feel the need to use credit cards for your Christmas spending, set limits and track your spending closely. Then make sure you pay it off as soon as possible.
Do not use emergency funds for Christmas. Whatever money you have put aside for a rainy day, do not touch it; it has its own purpose and it’s not Christmas. Instead, create a different bucket for Christmas saving and/or other holiday spending. No justification is good enough to use emergency funds for holiday spending.
Remember, you’re not trying to buy happiness or Christmas cheer. The best way to enjoy the holiday is by creating memories, not debt. Focus on the things that matter to you and your family. Make sure the Grinch doesn’t steal your hard-earned money, your peace of mind, or the joy of the season.
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