The holidays are about celebrating our faith, traditions, and spending quality time with family, friends, and loved ones. However, every year, we feel a combination of joy and stress as we approach the days leading up to the holidays due to overspending and limited time as a result of shopping, baking, going to parties, and dealing with traffic.
If you’re one of those people who feel the stress of the holidays, here are five tips to help you have a debt-free more relaxing holiday season:
1. Make a budget for everyone on your list, and do not deviate from it. Whether its buying gifts or contributing to the cost of holiday get-togethers, be upfront with your family and friends about what you can afford, this will help curb impulse shopping and spending. And you'll save a lot of money when you “Do it yourself,” such as baking and packaging your gifts for coworkers or anyone you want to share a small token of your appreciation. Also, installing a budgeting app on your phone can prevent overspending and make sticking to a budget more manageable.
2. Start your holiday shopping early. Waiting until the last minute to do your shopping can lead to purchasing higher-priced items because lower priced items may already be sold out. Also, starting to shop several weeks or months before the holidays means you won’t have to come up with so much cash at once or be tempted to use credit cards, which can lead to debt.
3. Be mindful of “buy now and pay later” or “apply for a credit card and receive a discount” promotions. Either online or in stores, these offers sometimes have clauses that allow interest to accrue until your first payment or they have a high-interest rate. Also, opening additional credit can negatively affect your credit score. Most importantly, don’t spend money you do not have. If you must use credit cards, pay the balance off in full every month or within the billing grace period.
4. Give to charity. The holiday season is the time of year to be especially grateful for what we have instead of worrying about what we do not have. Donate to charity and let everyone know you've chosen to spend your money on others who are less fortunate. Donating to causes you care about and believe in is gratifying, and donating to a charity can inspire your loved ones to do the same. Also, if you can find some time this holiday season, or you are tight on cash, then donate by sharing your talents. For example, if you are good at computers, building, organizing, cooking, or working with your hands, then use your abilities to assist seniors or veterans, or get involved with civic or faith-based organizations.
5. Don’t forget about yourself. It’s crucial to make sure to prioritize some time for yourself, so you feel mentally and physically healthy. If you notice changes in your sleeping and eating habits, you’re feeling moody or irritable, or you’re exhausted and fatigued these symptoms are all warning signs of too much stress and anxiety in your life. There is no reason why you have to do everything on your own, so delegate and ask for help, and don’t feel guilty having to say “NO” to attending a social activity due to having a full schedule. Also, if you live far away or estranged from your family, reach out to friends, so you’re not alone during the holidays. It’s essential to take care of yourself during this busy time of year.
After this holiday season, review your receipts and bills to determine how much you need to start saving for the next one by putting aside cash in a Holiday Savings Account. Set up an automatic transfer from your checking account to fund this account when your paycheck hits every two weeks or once a month. Saving $85 per month will give you $1,000 to spend during next year’s holiday season.
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Livia Kelly is the author of UNMARRIED and DEBT-FREE. She provides basic, sound and useful information about achieving financial success on your own. Click on the HOME button at the top of this page to learn more.