End the Holiday Spending Hangover in 5 Easy Steps
The holidays are coming. Remember when the holidays were a joyous time to embrace family togetherness and to celebrate the season with friends? Remember when you didn’t stress over the holidays and instead enjoyed the magic and cozy feeling inside? I promise you can get back a little bit of that by doing the five steps below. Here’s how to not have a holiday spending hangover in January and instead have less stress/more fun.
Determine your budget. How much money can you set aside right now? What have you already set aside? How much can you stash away until January? The trick here is to make sure you have set a budget that allows you to pay for holiday gifts in full. End the habit of putting them on credit with the idea that the balance due will get paid off in time. Yes, use your rewards credit cards to make your purchases, but put an end to the holiday spending blues by paying that credit card bill in full in January.
Who is getting a gift? Decide who you are buying for and how much you can spend on each person. Put this in a spreadsheet to make sure you hit your budget and don’t forget anyone in the process. If our holiday shopping list and budget is not predetermined, we all have the tendency to overspend because we forgot somebody. Get it all organized now and set yourself up for success.
Have a back-up plan. Is your budget tight? Can’t get to everyone? Many of us have everything we need and more, but we also want to show people we care about them during the holidays.Think about people on your list who would be happy with a handwritten note and a thoughtful homemade gift. I’ve done ornaments, Kahlua brownie kits, Oprah’s fudge wreaths, and homemade dog biscuits just to name some ideas. The trick is to keep it simple but heartfelt. These are also a great way to get the kids involved and make some sweet holiday memories.
Schedule free fun events. Many things that make the holidays so special are completely free! Have a special tree decorating party for your family. Plan an evening to go see holiday lights while playing your favorite tunes. Have friends over for a cookie swap. Build a snowman (or a fake one). Watch your favorite holiday movie with popcorn and hot chocolate. I try to schedule free family holiday fun throughout the end of November and all of December. The whole month has weekly activities that make the time together special. It doesn’t have to cost very much or anything. Put your creativity to work. And, if you are anything like me, if it’s not on the calendar, it doesn’t happen. So, make this season chalk full of fun instead of stuff.
Prepare for next year. As mentioned above, I caution you to put it all on the card and pay it off over the year. The money you’ll be saving on interest can go to other fun things you want to do. Get in front of it. Now that you have your budget established, sock away money each month into your short-term savings account so that the holidays are fully funded next year. Every year I know I have $2,000 set aside for Christmas at my house. This is the right amount for our family. Find your right amount, divide it by 12 and this is how much you should be setting aside every month to ensure the holidays are fun and not filled with guilt or stress.
And finally, here are some additional tips for keeping the organization going. Since you now have a spreadsheet, just update it every year. On your spreadsheet, include additional line items for things like a fresh tree (if that’s your preference), cards, postage, shipping, fancy holiday meal items, stockings, wrapping supplies, and food/drinks for a small gathering of friends.
By following these steps and preparing in advance, I have been able to turn my Christmas into a time I look forward to instead of a time pf meltdown and letdown. Sticking to my budget, planning fun free activities, and getting ahead of the storm has made all the difference. I hope this inspires you to have happy holidays, however you celebrate, and perhaps cure that January spending hangover.
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