Let’s be honest. If you are reading this article, you’re most likely in one of two positions. It’s either December and you’re trying to figure out how to afford to buy so many gifts, or you are planning way ahead of time to make sure you get your finances in order to survive the holidays. Here are a few tips I have used for the past few years to survive holiday spending without using any credit cards. Spoiler alert!! None of these tips will be attractive or sexy to execute, but I guarantee you they will make the holidays less stressful so you can focus on spending more time with your family.
#1: Set Money Aside Each Month
This approach works best when you start as early as possible. Determine how much money you want to have for all your holiday spending and save a small amount each paycheck to reach that goal by the time December comes around.
I’ve personally decided on a goal of $1,000 for all my holiday gifts and expenses. It’s a relatively low amount compared to what some people spend. I generally save $50 each paycheck starting in January when I write out my financial and personal goals at the beginning of the year. By the time December comes around, I roughly have $950 saved up in cash and add an additional amount from my last paycheck in December to push me over my spending goal.
Find an amount you feel comfortable with and stick to it each month. This is definitely the slow and steady approach but works great every time so long as you don’t spend the pool of money you’ve been saving up all year.
#2: Use Your Tax Refund To Pay For Holiday Expenses
This one might be the least popular because people love to spend their tax refunds on themselves. I get that it’s not going to be very popular. But if you know you might get a lump sum of money around February or March after filing taxes, it would make sense to put aside some holiday money then before you spend it on other things.
If you want to use part of your refund money for yourself, you can blend this approach with the option above. If your goal is to have $1,000 going into December, you can put aside $500 when you get your refund and then save a small amount from each paycheck until you hit your goal amount.
#3: Purchase Your Gifts Ahead Of Time
If you have specific people in your life who you know will be around every year, then it never hurts to have a holiday shopping list year-round to keep your eyes open for deals. Thinking about the holidays before the time pumpkin spiced lattes hit the coffee shops will give you enough time to price compare and shop around for a gift.
You might end up spending more money on a gift because you wait until the last month of the year and go shopping the one weekend you don’t have to work or have other obligations. You end up at the store with no time to shop around and limited inventory. Do yourself a favor and start as early as possible. One option is to make a list if electronics are somewhere in the picture. If so, jump to the next tip.
#4: Black Friday Any Big Ticket Purchases
If you know ahead of time that certain items are going to make your list of the holidays. Get a head start and try and purchase them on Black Friday. Doesn’t really matter if it’s Black Friday, Cyber Monday, or who knows what other name retailers will come up with. Just find the item ahead of time and see which retailers will have it for purchase during that period from Black Friday to December.
#5: Secret Santa’s And White Elephant Parties
If you have a lot of coworkers, cousins, or friends, it’s probably not a good idea to buy a gift for each individual person. Buying gifts for every person that you come in contact with is a surefire way to break the bank. Instead, pick each of your groups and suggest a white elephant or Secret Santa exchange. It makes it easier to survive the holidays since you only need to purchase one gift per group. Most of the time, you can even suggest a specific dollar amount making it less stressful. It’s actually a pretty fun game to find something gift-worthy and still be within the dollar amount suggested, so have fun and get creative.
#6: Be more mindful with your gifts instead of using a price tag
If there is no way to get out of a gift by using a gift exchange and you have to get a gift, then just remember one thing before you scour the aisle at all the retailers, the price of the gift you purchase does not have to reflect the friendship you and this person share. Don’t try and buy the most expensive gift to show your friendship. It may even put the other person in a position where they feel forced to buy you a gift that’s equally expensive when they weren’t planning to. Keep it simple and thoughtful. Some of the best gifts I have bought for my closest friends were a combination of small thoughtful gifts that were useful, practical, and brought back a fun memory we shared together.
Take pride in making a gift yourself and your real friends and family will love you for it.
Summary
The most important thing to remember is that your relationships and friendships with your loved ones are more important than the price of a gift. The holidays can already be a hectic time with so many purchases and expenses. Keep it simple and try not to get overwhelmed. The sooner you start thinking about the holidays, the easier it will be once December comes around. Start early and always determine a total amount you won’t exceed to make it easier to stick to a budget.