Have you repeatedly set a budget for your Christmas expenses, only to find yourself astounded by your credit card bill each year? The numbers may seem surreal on paper, but you can’t deny the spending happened. You’re not alone; it’s a common trap, even for the financially savvy.
One year, I created a holiday savings fund, where I stashed away $50 from each paycheck into a designated December account. Despite this measure, I still ended up spending beyond my budget by several hundred dollars.
If the sting of holiday overspending is causing you to dread the upcoming new year rather than anticipating it, consider these tips on how to bounce back from a busted holiday budget.
FIRSTLY, CONSIDER RETURNING ITEMS
With Christmas not yet upon us, there’s still an opportunity to return gifts that may lean into the “luxurious” end of the spectrum. It’s all too easy to overspend while caught up in the festive spirit and surrounded by constant consumerism. However, once you’re home, the reality sets in – do your children genuinely require $500 worth of new toys when they underutilise what they already have? Don’t hesitate to take back that lavish present for Aunt Lucy, opting for two more practical gifts instead. In doing so, you can accommodate more people on your gifting list.
CONTEMPLATE RE-GIFTING
Have you accumulated a pile of untouched gift cards? Whether they originated from work or were intended as a vague “everyone loves a Starbucks” kind of sentiment, they could be your answer to re-gifting. Utilize them as stocking fillers or bring them along to a Secret Santa or White Elephant party where gifting is essential.
REDUCE SPENDING IN OTHER ASPECTS
In the face of your burst holiday budget, created by a flurry of gifts, celebrations, decorations, and spontaneous splurges, the best course may be to scale back your spending in other areas. Limit the holiday party invitations you accept, reuse your decorations next year, and swap out dining out for packed lunches.
Attempt to limit your grocery shopping too, striving to make do with what you already have at home. The holiday period often brings an influx of food from events and gatherings. Enjoy these occasions fully but keep the home meals to a minimum.
PLAN FOR THE FUTURE
Finally, if all other strategies fail, take heed of this painful financial turmoil and commit to better financial management next year. Make measured strides by establishing a holiday budget and setting money aside from each paycheck.
Trim your gift list; you might not need to gift everyone you know. And discussion with your family about hosting a gift exchange next year instead of buying for all could save everyone some financial stress. Remember, there are smart ways to navigate this holiday season without breaking the bank, courtesy of SmartAsset.com.
