Tips to Prep for Holiday Spending Guilt-Free

The holiday season is a time for joy and gratitude. With careful preparation, you can enjoy the festivities while keeping your finances secure and working toward your goals.

Proactively creating a spending plan can help you manage holiday costs and maximize savings. Smart planning and mindful spending enable you to enjoy the holidays.

Consider implementing the following tips to prep for holiday spending guilt-free.

1.  Set a Realistic Holiday Spending Plan

Evaluate your financial situation before overindulging in holiday shopping. Then, set a spending limit to avoid taking on debt.

Consider your holiday-related expenses, such as the following:

• Decorations

• Entertainment

• Gifts

• Food and beverages

• Travel costs

Once you have your holiday expenses listed, break them down by category. For example:

• Decorations and entertainment: 10%

• Gifts: 60%

• Food and beverages: 20%

• Travel: 10%

Consider using a spreadsheet, budgeting app, or pen and paper to monitor your expenses.

Tracking your holiday spending helps you stay within your limits.

2.  Remember Post-Holiday Expenses

Leave room in your spending plan for post-holiday shopping, credit card payments, and other expenses. Consider setting aside a small amount of money to help ease the transition into the new year.

3.  Make a Gift List

Write down everyone you plan to buy presents for and a spending limit for each person. Then, consider meaningful gifts within each price range. Sticking to your list while holiday shopping helps avoid impulse purchases, unnecessary spending, and debt.

4.  Create DIY Gifts

Homemade gifts can be more meaningful and less expensive than store-bought ones. Focus on your hobbies, talents, skills, and interests to create unique, personalized gifts that feel high-end. Ideas include:

• A hand-knitted luxury scarf or throw

• A beautifully framed, professional-quality photo

• A custom-designed piece of digital art

• A personalized, leather-bound journal

5.  Look for Discounts

Sales and promotions are abundant during the holiday season:

• Sign up for e-newsletters from your favorite stores to receive early notifications about sales.

• Research your gift ideas and shop for the best deals.

• Use online coupons, loyalty rewards, and seasonal discounts to save money without sacrificing quality.

6.  Buy Gifts with Cash or a Debit Card

Paying for holiday purchases with cash or your debit card helps you follow your spending plan. However, if you want to use your credit card to earn rewards, ensure you set limits and pay off your balance on time to avoid late fees and interest charges.

*This information is for educational purposes only.