‘Tis the most wonderful time of the year! And unfortunately, for many of us, it’s also the most expensive time of the year. We want to be festive. We want to have all of the holiday cheer. And, we want to exchange gifts with our loved ones. But we also don’t want to go into debt over it all. What can we do?
The Holiday Budgeting Hacks for a Festive Season
Thankfully, there are plenty of holiday budgeting hacks that you can follow. Many of them are actually easy and much lower stress than you probably realize. These are the realistic holiday budgeting hacks that actually work.
1) Set a Budget
This may seem obvious, but we have to say it. You need to look at your finances, including money you have saved, money you should have coming in, and any debts you have. Based on that, you should be able to figure out what your holiday spending cap is.
This is the total number – combined – that you can comfortably spend this holiday season. Once you have that max number, break it down by different categories. For example, you can categorize gifts, holiday festivities, any travel you have to do, and so on. Keep this budget in mind all season long as you go to buy things or book things.
2) Take Advantage of Free Events
Not every holiday event has a price tag attached to it! Some are free or low cost. Check and see if there are any holiday markets happening in your area. These are fun to walk around in, and you only spend money if you decide you want to buy something.
Lots of towns and neighborhoods also host free holiday community events, such as tree-lightings or groups caroling. One really festive – and free – activity to take part in is to walk around your neighborhood and look at all of the holiday decorations!
3) Do a Secret Santa or White Elephant Gift Exchange
If you have a big family or friend group, rather than getting everyone their own gift, suggest doing a Secret Santa or White Elephant. This holiday budgeting hack can lighten the pressure of gift giving and add some fun to the occasion.
Not only are you still showing your family or friend group that you care, but you’re making a fun game out of it. People can get real thoughtful with their gifts, and then have to guess who they think the gift was from!
4) Skip Gifts and Do an Experience
If you don’t think your friend group or family would go for a Secret Santa or a White Elephant, why not suggest doing an experience all together instead? Use the money you were planning to spend on gifts and choose something to create fun memories of a unique holiday experience.
The possibilities are endless such as a nice dinner, a trip to the vineyard or brewery, a weekend trip – whatever you guys decide! This won’t just save you money, but it’ll let you take part in an experience you’re sure to enjoy, too, rather than just getting more stuff.
5) Hit the Thrift Store as a Holiday Budgeting Hack
You likely will still need to get some gifts for people. Instead of heading to a big store and buying something for full price, check out your local thrift store. We get if you’re weary about giving someone something that’s not new, but there are so many things at thrift stores that you can find that still have tags on them!
There are also so many things there in really good condition. You can make a whole basket of gifts for someone and spend less than if you had bought them one item at a department store for full price.
6) Check Out Discount Store or Sales
If you’re really against going to the thrift store, head to a discount store like TJ Maxx, Marshall’s, Burlington, or Ross instead. Everything in these stores are brand new with tags, for a much less price than in department stores.
You also want to keep an eye out on any big sales that are happening at your favorite department stores to take advantage of those, too. This is particularly helpful to do if you have a specific gift in mind that you want to buy.
7) Make the Gifts Yourself
If you’re super crafty – or if you have something like the Cricut machine – why not make the gifts yourself? There’s something so sweet and so personal about taking the time to make someone a gift. They are super thoughtful, and thankfully much more inexpensive. Personal touches always win, and that will shine when you give your gift.
8) Pay Attention to Travel Trends
Traveling for the holidays can be so expensive. If you have to fly, try and book flights as early as you can; and use tools like Hopper or Google Flights price alerts to help you gauge whether you’re getting a good price or not.
If you are driving, see if you can carpool with someone so you can split things like gas or tolls; plus it makes things more fun! The later you book travel, the pricier it tends to get.
9) Don’t Buy a New Outfit for this Holiday Budgeting Hack
We all know how tempting it is to feel like we need a new outfit for the holidays, and for all of the festivities happening, too. Chances are, you already have things in your closet that work.
Before you go out and buy something, take inventory of your own closet. See what you already have, and if it’ll work with the festivities you have lined up. If you still need something, go “shop” in your friends or family’s closets first and see if they’ll let you borrow something.
10) Reuse Decorations
Again – it’s so tempting to go out and buy all new decorations. It’s likely you already have plenty from last year that are still in great shape that you can use! Put all of that stuff up first, and if you still feel like your place needs more, then go out looking (and don’t forget to check out thrift stores or discount stores!).
The same principal can be used for gift wrap. You probably have bags, ribbons and bows from last year you can use rather than buying new gift wrap. You can even get really creative and use some brown paper, old newspapers, some twine, and a bow or tag.
Final Thoughts on Our Favorite Holiday Budgeting Hacks
As the festive season approaches remember that the desire to give to others does not have to drain you financially. Adopting just a few of these ideas can mean releasing a burden and increasing your joy during the holidays.
About the Author
Michelle graduated from Fordham University with a Bachelors of Arts '13 and a Master of Arts '14. She's currently working in corporate America with a side of freelance writing. She wants you to learn from her experiences and mistakes so your 20s can be your best decade. When she's not working, she's likely planning her escape to a tropical island.