Saving Money Around the Christmas Holidays

Christmas is here again! And one thing that is synonymous with the season is spending. If you’re not very careful, you could spend all of your money and have not much or nothing actually to fall back on in the new year.

Now, I don’t want that for you. You should be able to enjoy the holidays with your friends and family, be merry, and yet have enough financial buoyancy to hit the ground running when the new year comes around.

It’s not a difficult goal to achieve once you understand how to manage your finances. Here are some tips to help you save money during this festive period.

1. Create a Holiday Budget

As the season to be merry draws near, you should consider drawing up a holiday budget. Budgeting isn’t some financial jargon best left to the pros. It’s actually a smart way of managing your finances. And it’s something you should do this Christmas if you want to save some money.

To ensure you don’t go overboard with expenditures during the holiday, start with reviewing your finances. Then allocate a fraction of your disposable income to cover all of your holiday expenses. Next, make a list of everything you feel you may need to spend on. This could range from gifts, decor to travel.

Now, arrange them in order of priority and fix a sum to each expense. If you allocate 10 CHF to buying ornaments, try not to exceed that amount. Once you start spending, make sure you track your expenditure and stick to the budget.

2. Gift Wisely

It’s Christmas, a season to share all the love with everyone around you. While that has become the conventional thing to do to get into the spirit of the holidays, it’s very easy to get carried away trying to splurge on fancy, expensive gifts for our loved ones.

I’m not saying you can’t buy thoughtful presents for your family and friends. The point here is to avoid making purchases to the detriment of your financial health. Don’t give what you do not have. To put it in another way, don’t give out your lunch and then starve.

So, how do you avoid jeopardising your finances when you really want to get into the spirit of Christmas? First, remember that you do not need to get a present for every single person you know. Focus on your immediate family, the people that matter the most to you, and whom you’d like to appreciate.

Secondly, review your finances and then decide how much you can conveniently spend on purchasing these gifts. Make sure it’s a reasonable sum you’d be happy to part ways with. Not one that could set you back a great deal or leave you unable to attend to your other important needs.

Finally, remember that you don’t have to go overboard. Keep it simple and thoughtful. Consider DIY gift ideas. You’ll be surprised how much of an impact little gifts can make once you put a lot of thought and heart into them.

3. Avoid Panic Buying

A common sale strategy that a lot of brands utilise during the holidays is encouraging people to panic buy their products by declaring they have limited stock. So, you may not urgently need that item, but the possibility of it becoming sold out or permanently unavailable when next you come back to check.

Before whipping out your purse and swiping your card, pause. Ask yourself if you truly need that item or are simply buying it on impulse. Panic buying any item without careful deliberation can cause you to spend so much on something you may not need or cannot truly afford in the moment.

And you know what the worst part is, if you come back to check in a few days, weeks, or months, there’s a good chance you’ll still find that product or viable alternatives too. A good way to avoid panic buying is to always take a minute to breathe. Consider the motives behind your spending decision. Is your purchase motivated by panic or reason? The less you spend panic buying, the more money you have saved.

4.Think Twice Before Splurging on Holiday Decorations

Christmas presents many people with an opportunity to get creative and add some warmth to their homes and living spaces. While it’s fun to bring out the trees and lights, remember that it’s supposed to be a fun activity, not a money-draining venture.

Before going overboard with purchasing really expensive decor, remember that Christmas happens once a year. Should you really be buying decorations you can’t avoid? Why not reuse lights and accessories from the previous year?

And while all the decorations tend to add a bit of magic to the atmosphere, the real magic is in spending time with your family and enjoying their company.

So, don’t feel compelled to follow expensive traditions at the expense of your financial stability. Instead, look around your home for what you already have and get really creative. With the help of a YouTube video, you could transform old, empty jars into illuminating ornaments. And if you must buy something new, consider thrift shopping. This way, you can cut costs and consequently save some money.

5. Consider Staying Home For The Holidays

Traveling during the holidays to visit family and friends could be a fun idea! But it’s also one that comes with quite a hefty price tag. Plus, traveling during Christmas is often more expensive and hectic.

Flights costs often increase at the end of the year. So, consider staying home. You could host a virtual celebration and have everyone join in from all over the world. If there’s one thing COVID taught us, it’s that distance doesn’t have to be a barrier.

But technology cannot reproduce the feeling of a warm hug and physical touch. At least not yet. If traveling means much to you, then consider the best ways to save some money. Book your flights early. And rather than fly on the days leading to Christmas, consider flying on Christmas Day. Sometimes, it’s even less expensive.

Don’t Forget to Plan for the New Year

Remember that Christmas doesn’t last forever. Your decisions during the holidays can set the tone for the beginning of the following year. So, try not to spend all the money you have on merriment. Keep some in reserve to help you with your daily expenses. There’d be bills to pick up and emergencies that may occur unexpectedly.

But if you enjoy Christmas with the New Year in mind, you can avoid being in an ugly financial situation. So, follow the tips shared and remain smart with your finances.

I wish you a Merry Christmas. Have a wonderful holiday season!