It’s December 1st. Which means my decorations are up, my advent calendar is out, and I will be playing Hanson’s Snowed In on repeat for the rest of the month. In other words, I am ready for Christmas.
One thing that might not be so ready, however, is my wallet. No matter what holiday you celebrate or how long your “nice list” is, budgeting for the holiday season can be tricky for even the savviest of shoppers. Between gifts to buy, parties to attend, and meals to make it’s easy for your credit card balance to soar higher than your good holiday cheer.
So to prevent any post-holiday horror at how much you spent being merry, I’ve come up with a few tips on how you can be both festive and budget-friendly this year.
- Give DIY gifts – Are you crafty? Can you knit? Or draw? Or take great photographs? Then maybe you can make a gift for less than you could buy one. Pinterest has no shortage of easy DIY gift projects with step-by-step instructions for how to make them. What’s more, your gift will have more sentimental value than a store-bought item because you personalized it. Or if you’re not that confident in your crafting abilities, check out gifts on Etsy. They’re often creative, fun, and handmade but often less expensive than what you’d find at the mall.
- Or give a helping hand – Sometimes the things we do for others are more valuable than the things we buy them. If you’re handy, offer your services fixing small problems around your grandparents’ house. If you’re good with makeup, volunteer to beautify your sister before a big night out (Note to my sister – don’t worry. I will not go near your face. This idea is meant for people who can be trusted not to make you look like 1985 David Bowie from the movie Labyrinth). Your time and help can make a much better gift than a last minute purchase from the bargain bin, and it will save you money.
- Track your spending – ‘Tis the season for giving, but that doesn’t have to mean giving more than you have. Keep track of your holiday spending closely with a notebook or online tool. Determine ahead of time how much you plan to spend on each person on your list, on holiday parties, and on other holiday activities. Then make sure stick to the plan. Writing down what you spend will hold you accountable to yourself and your budget.
- Create a new tradition – If your gift-giving budget is tight this year, chances are the same might be true for your friends and family. Get together and create new holiday traditions that save everyone a few dollars. Consider doing a Yankee Swap or Secret Santa instead of a traditional gift exchange. Or pool the money you would have spent as a group on gifts for each other to do something good for your community, like sending care packages to local troops overseas or hosting a holiday dinner at a nursing home. It’ll get you in the holiday spirit without hurting your wallet.
- Consider a Holiday Loan – Unless you’re a total Scrooge, holiday expenses happen. If you haven’t saved up money throughout the year it can be tough to find the money to pay for your holiday needs. Your financial institution might be able to help! My credit union offers a Holiday Loan that lets members who qualify borrow up to $2,500 for 12 months at a low interest rate. It’s a way smarter option than putting all your purchases on your credit card because the interest rate is typically much lower. Plus with an installment loan making the minimum payments will guarantee that you pay back the debt in one year. With revolving debt like a credit card it could take much longer. Holiday Loans can be a great way to get some extra jingle without hurting your credit.
Hope these tips help you get in the spirit while still staying on budget. Happy Holidays!