The Holidays are here! For many people, this is a time of joyful anticipation. With the cold frosty weather comes festivities, shopping and maybe the odd bottle of bubbly in celebration. For some though this can be a time to dread; our wallets get tighter with all the parties to attend, presents to buy, and food to sort. With the right preparation—just as is needed before cooking the family feast—you can survive the holidays without any new consumer debt.
Is that shock and amazement, we see on your face? Surviving—even enjoying the holidays is entirely possible if you set your budget up in advance.
Step 1 Determine your holiday spending money
Sit down and work out exactly how much you want to spend this holiday season. What figure do you have in mind and how much more can you realistically save between now and December 25th? How much do you already have saved that you want to use towards the festive season?
Step 2 Outline your festive budget
As with anything; failure to prepare is a plan to fail. Create a budget for all the upcoming holiday expenses you’re potentially going to encounter. From parties, presents and alcohol, to holiday food and those extra tanks of gas you’re going to use visiting relatives. Project for everything, right down to the last mince pie. Don’t forget wrapping paper and cards too!
Step 3 Make a list… and check it twice :)
In your present budget, write down everyone that you want to give a gift to this year, from family and friends right down to the postman if that’s who you’d like to include on your gift list.
Step 4 Paid gift, made gift, or no gift
So you’ve made this list—now you have to prioritize. Who do you absolutely need to buy gifts for? Really.
Remember at this point: The holidays are about expressing appreciation and love. Both of which can be done without money. You don’t have to be rich to enjoy your Christmas.
Separate each name into three groups—paid gift, made gift or no gift. Now that you know how much you can really afford to spend you will have a better sense of how many people you can include on your paid gift list. Knowing your time availability, it’s okay to limit your made gift list. For those that fall into the no gift category, send a Christmas card with your best wishes instead.
As commercial as the holidays have become, remember it is not about financially crippling yourself before the end of the year.
Step 5 Make your budget work
Now that you know what to spend; stick to it. And don’t forget, budgeting for present shopping can be enhanced with a little creativity. If buying an expensive item for a family member is not feasible on your own, then make it a family/group gift. Or consider home-baked goods or a nice framed picture containing a photo of you and the recipient.
Think outside the festive box! And cheers!
