While we all enjoy the holiday season, it can also be a stressful time of year. Over-planned calendars and surprise events mean that this time of year not only costs time but money, too. Before you decide how much to parcel out for your white-elephant exchange or favorite charity, take a look at these tips to help your budget stay green.
Create Your Overall Holiday Budget
Add up how much you anticipate spending this holiday season by categories:
- Travel (include plane tickets, gas, tolls, rental cars, hotels, Airbnbs, etc.)
- Food (include special holiday meals, eating out with friends, and while on the road traveling)
- Gifts (family, neighborhood cookie exchange and work)
- Decorations
- Activities (ice skating, schools-out activities, and winter light displays)
- Day camps while school is out
Decide on Your Spending Limit
Determine if you have enough money available to cover additional expenses this year. When you are considering this amount be sure that you only use money that you have set aside or that you can find in your budget.
Assign Money to Each Category
Divide the money up over the different categories that you have. This means assigning a specific amount for each gift. This is also helpful when you brainstorm gift ideas. Having a set amount helps you find ideas within that price range. Compare this total to the overall spending limit you calculated.
Time to Make Some Cuts
If there’s no leeway between your budget and your projected holiday expenses, it’s time to make a few changes. Do you have to get your siblings presents or can you just exchange cards this year? (you can forward this GWell to family to start the conversation now!) Do your kids need a new Xbox or can you opt for smaller gifts?
It’s also helpful to know where you can make changes in a more permanent way: can you reduce the number of weekday take-out meals? Are there subscription services that you aren’t really using? You don’t have to make the changes permanent. Even a temporary freeze could free up some room in your budget.
Make a Shopping List
Once your budget is created, use a list for your holiday shopping. You should have one or two ideas within your price range for each individual. If you take the time to search the sales papers and online deals you may even be able to find some great gifts for less money than you budgeted.
Time is More Precious than Gifts
If you’ve gone through your budget and don’t have any extra money to give this year, don’t despair. Maybe there are other ways to make someone know you’re thinking of them. How about a free babysitting coupon for your neighbors? Or, have your children get involved by walking the neighbors pet for free over the holidays while they travel.
Set the Example
For people who can’t give as much as they’d like—or just want to give more—they can consider fundraising for their favorite organization. Many people feel charitable during the holidays, but struggle to find a way to help.
Social media is a great way to get the word out, but nothing is as effective as talking to people directly. You can even hold a physical drive if you know of a charity that’s looking for specific items, such as an animal rescue shelter looking for old towels or a women’s shelter looking for toiletries. This way, you can declutter your house and help out your favorite mission at the same time.
Summary
With a little bit of planning, imagination and conscious effort, you can reduce the stress that starts to creep up this time of year. Gift-giving, potlucks, family dinners and charitable acts are intended to spread joy. If your budget is squeezed, there are creative ways to make someone know they make a difference in your life. But remember, your presence can be the most meaningful present!
