The holiday season is here — a time for joy, giving, and...spending. Between gift exchanges, potlucks/ holiday dinners, and travel plans, it’s easy to get carried away in the holiday magic and find yourself starting the new year with regret (and a big credit card bill).
But it doesn’t have to be that way! With a little planning and intention, you can enjoy the season without letting your finances spiral out of control. In my last post, I talked about foundational money moves like tracking your spending and building an emergency fund.
Now, let’s build on that by focusing specifically on holiday spending and how you can use this season as a springboard to enter the new year in a strong financial position.
Remember: It’s not about depriving yourself or the people you care about. It’s about finding balance — celebrating the season without sabotaging your finance goals.
Let’s dive into some actionable tips to help you navigate holiday spending and set yourself up for success in 2025.
1. Set a Realistic Holiday Budget
Before you spend a single dollar, decide how much you can comfortably afford to spend during the holidays.
Be specific by breaking your budget into categories:
- Gifts: Allocate a set amount per person.
- Food & entertaining: Factor in holiday meals, parties, or potlucks.
- Travel: Consider airfare, gas, and hotel/Airbnb stays.
- Extras: Don’t forget wrapping paper, decorations, and holiday outfits (matching Christmas pajamas).
2. Track Your Spending in Real-Time
As I mentioned in my last post, tracking your spending is the foundation of financial awareness. During the holidays, this is even more important. Use a budgeting app or a simple spreadsheet to log every purchase. Or the simplest way to track is to write everything down on a piece of notebook paper.
Why It Matters: It’s easy to lose track when you’re buying “just one more gift” or picking up extra holiday groceries.
Action Step: Set a weekly check-in with yourself or with a spouse to review your holiday expenses and ensure you’re staying within your budget.
3. Get Creative with Gift-Giving
You don’t have to spend a fortune to show someone you care. Thoughtful, creative gifts can often mean more than expensive ones. Here's some thoughtful gift ideas:
- DIY gifts: Bake cookies, make a photo book, or create a personalized gift basket.
- Gift of time: Offer babysitting services, house cleaning, or a home-cooked meal for a friend or family member who could use the help.
- Group gifting: If buying for everyone in the family feels overwhelming, suggest a Secret Santa or White Elephant gift exchange to cut costs.
4. Save on Holiday Shopping
Be that savvy shopper that I know you are deep down inside and stretch your dollars further with these tips:
- Start early: Avoid last-minute shopping to prevent impulse buys and higher prices.
- Compare prices: Use apps like Honey or Rakuten to find discounts and cashback deals. My favorite is the Flipp app.
- Buy in bulk: Stock up on wrapping paper, tape, and other holiday essentials to save money.
Pro Tip: Shop with a list and stick to it. It’s a simple but powerful way to avoid overspending.
5. Plan Ahead for 2025
Use this holiday season to set yourself up for financial success in the new year. Here's how you're gonna do that:
- Create a sinking fund for next year: Start saving now for holiday expenses in 2025. I know it seems so far off (especially since December hasn't gotten here yet). Set aside a small amount each month — by next December, you’ll have a dedicated holiday fund.
- Declutter and sell: As you prep your home for the holidays, consider selling belongings you don't use anymore. I know you've got a pile of something you're not going to use. The extra cash can go toward gifts or debt repayment.
- Set financial goals: Before the clock strikes midnight on December 31, take time to reflect on what you want to achieve financially next year. Take it one step further and write it down.
6. Lean on Resources and Support
As I mentioned in my last post, you don’t have to do this alone. Whether it’s a personal finance coach (like me!) or a community of like-minded people, finding support can make all the difference. If you haven't yet, go back (after you finish this one and read my last post here).
Here's some resources that are Money Magnet approved:
- Join holiday budgeting groups: Many online communities share tips, deals, and motivation for sticking to a budget. They are out there. Just search Facebook for some groups you'd like to join.
- Follow financial experts: Stay inspired with practical tips and strategies for navigating the holidays and beyond. I'd never go so far as to say I'm an "expert" but I do know a thing or two about budgeting. Psst: I give regular money-saving tips on social media under the The Money Magnet Coach name.
- Use budgeting/savings tools: Budgeting apps, cashback websites/apps, and holiday spending trackers can make managing your money easier and more effective.
Celebrate the Season Without Financial Stress
The holidays are a time to make memories, not debt. By being intentional with your spending, you can enjoy everything this season has to offer without sacrificing your financial peace.
The best part? You’ll enter the new year feeling empowered, not overwhelmed. As a coach this is the place I want you to be — at peace with your money.
Remember, the habits you build during the holidays can carry over into 2025 and beyond. Whether it’s sticking to a budget, tracking your spending, or saving for the future, every small step you take adds up.
Make this holiday season the one where you enjoy the moments that matter most while staying on track financially. If you’re ready to take control and start 2025 strong, I’m here to guide you every step of the way. Let’s do this together!
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