How To Manage Holiday Spending (And Still Enjoy The Season!)

The Holidays are here again. And a long season of celebrations (AND spending sprees) is about to start. While that means a lot of fun, excitement, and Hallmark movies, it also means something else. It brings on a lot of worry about how to manage holiday spending.

This is especially true you’re not feeling particularly abundant right now. It can really make these last three months of the year anything BUT the “most wonderful time of the year.” 

The Holidays can induce a lot of anxiety and depression, especially where money is concerned. How do you manage holiday spending when you’re not sure there’ll be money to spend?

From Black Friday and Cyber Monday through New Year’s Eve, the message to “spend your way to happiness” is loud and clear. And if your financial situation is in any way compromised, it can make you feel about as “bah, humbug!” as it gets.

Not that I have a problem with merchants wanting to make money at this time of year.  I’m ALL for profitable businesses! However, as a consumer, here is one important thing to know…

You are under no obligation to spend money because you think you have to. Not even at Holiday time!

You don’t have to spend money on things that you don’t want or need. You don’t have to feel obligated to buy every little thing just because a commercial tells you it’s necessary for a happy holiday season.
However, you CAN spend wisely and actually enjoy the holidays! It starts by changing your spending attitude from quantity to QUALITY. 

Here are 6 empowering tips to keep holiday spending on track:

1. Set a budget for your holiday spending (and stick to it).

This might sound obvious in theory, but challenging in practice. How do you really make a budget stick? Isn’t that about as realistic as trying to “stick to a diet” during the holidays? Believe it or not, doesn’t have to be! Here’s how you make the budget thing actually WORK:

First, decide how much money you intend to spend. Include all of your holiday spending, like gifts, cards, decorations, parties, and food. Include everything so that you get a real idea of what you intend to spend.

Then try one of these two powerful budgeting tricks: 1) get a prepaid visa card with your set amount already on it, or 2) take out your set amount of cash from the ATM. And when it’s gone, it’s gone.

2. Make a gift recipient list.

Make a list of everyone you plan to buy gifts for this year. Base it on their interests and likes, then estimate the cost of each item that fits within Step 1, and work that into your holiday budget.

3. Keep track of what you spend

Keep track of what you actually end up spending and compare it against the list you created in Step 1. Look out for any major discrepancies, and take action to get them back under control. (Make a list and check it twice, if you will!) 

4. Raise your gift-giving budget creatively. 

If you’re falling short and can’t make a budget, think of some unique ways that you can raise some holiday funds. You can sell some stuff on craigslist, eBay, or consignment shops. You could go in on group gifts, or use your annual bonus to up your available funds. These strategies can help you can participate in gift-giving without going broke. 

5. Think outside the (gift) box.

Remember, the holidays aren’t just about pretty boxes with bows. There are many more ways to share the holiday spirit than just gift-giving. How about things like creating a unique experience for someone (like cooking a special dinner or hosting a movie night)? You could also give a gift certificate for your business services. Maybe trade gift certificates with entrepreneur friends who offer services, too. For example, I’d purchase a massage session from a massage therapist friend, and that friend could buy a one-hour wealth coaching session from me. Everyone gets something unique and fun, and with a lot less up-front cost.

6. Shop EARLY if possible.

Nothing is quite as prices as last-minute decisions, and holiday gift-giving is no exception. Those 11th-hour purchases always come with an extra cost, be it time, money, or energy. Try looking out for sales early and often. Maybe even keep your eyes out for Holiday gifts throughout the year, and keep them in a safe and secret pace until gift-giving time. (I’ve done this for ages, and it works like a charm!)

The Holidays were meant to be fun. Don’t let overspending and money anxiety steal your holiday happiness! Keep these 6 tips in mind this holiday season, and reduce that money-based holiday stress big-time.

So which one of these tips resonates the most with you? Leave me a comment and let me know which one you like the best! And if you have any additional tips that you use to keep holiday spending in check, share them below!

Here’s to a Happy (And Financially Healthy) Holiday Season!

Until Next Time,

Love, Light, and MONEY, Honey…

Kaylee