By Ann Arceo, AAMS®
While some of us may not feel like celebrating this year, others may feel like the holidays need to be extra special. In our household, we’re not spending on travel, but our gift list is longer because we want to send more presents to friends and family we won’t see in-person. We also bought some new decorations as we wanted the house to be festive while we’re spending more time at home. It can all add up to a lot, and the excitement of a new year can quickly be ruined by a large credit card bill from your December shopping spree.
Here are a few quick tips that we’re following to manage our holiday budget:
Making a List & Checking It Twice
The first step in making a holiday budget is knowing how much you have to spend. This should ideally be cash savings and not credit cards. If you find you’re short on cash, you should consider setting up a savings account next year and contributing a small amount to it each month. Once you know how much you have to spend, the next step is to list your expenses including the gifts, decorations, wrapping paper etc. that you need to buy. If you’re over budget, then you may need to decide what you can cut such as reusing the decorations you currently have and checking out the dollar store for wrapping paper and gifts bags.
Host a Virtual Secret Santa
My husband’s family lives out of the country so we won’t get to see them this holiday season. We decided to draw names so we could focus on buying one nice gift instead of gifts for everyone. We’ll buy it online at stores that offer free shipping and then host a Zoom party to open presents together. It’s not the same as seeing each other in-person, but we’re so grateful for technology during this time.
Send a Treat While Also Supporting a Local Business
This year has certainly been hard for many local businesses who have had to face closures and other restrictions. Check with local restaurants, bakeries, and florists to see if they are offering delivery. You could have a meal, dessert, or flowers sent to a friend, neighbor, or loved one that you can’t get together with during this time. You don’t have to spend a lot to send someone a treat that is sure to brighten their day.
Shop Smart
Online shopping has soared this year. While it’s certainly not the same experience as going to the store, online shopping can help you stick to your budget. It allows you to quickly check products across multiple stores to find the best price. Many stores will give you a discount code if you join their mailing list. You can also take your time and do your research, which can help you avoid buying gifts on impulse.
The holidays can be a magical time of year, but don’t let the magic hurt your finances. If you plan ahead, make a list, and shop smart you can have a wonderful holiday without overspending. You’ll thank yourself for it in the new year.