Budgeting and the Holidays

Orignally published in the Nov/Dec 2022 issue of Wake Living Magazine. 

If you feel like this year has flown by, you’re not alone; it seems as though summer pool days and beach trips were just a few weeks ago. Now we’re getting out holiday decorations and planning family dinner menus or looking for an ugly Christmas sweater. Even though it happens each and every year, the holidays still manage to sneak up on us somehow.

Our hope is that your holiday season is filled with reasons to celebrate. In 2022, maybe you purchased a home, got a new job, started a family, or opened your first ever savings account. No matter how big or small the milestone, you deserve to celebrate all you’ve accomplished this year.

Our only financial advice for the holidays is this:

Don’t let the joy of the season distract from the goals you have for your financial future.

Why this year will be an even bigger challenge

Supply chain issues, inflation, and increasing costs of living will make this coming holiday season a more expensive one. We can expect to see small holiday purchases really add up, from the ingredients for your favorite Thanksgiving Day side dishes to the lights you’re hanging on your tree.

That means you’ll have to be extra savvy and really pay attention to the details if you’re planning to stick to your budget.

Ideas to make shopping easier

1. Make a list

Everyone knows you don’t go grocery shopping when you’re hungry because you’ll make some unnecessary food purchases. The same can be said for gift shopping. It’s best to make a list of all the gifts you need to purchase for the holidays, and do your best not to add on any impulse buys while you’re tackling your list.

2. Drawing names

This is the old faithful of holiday hacks. A lot of us have really big families or are blessed with tons of friends we want to bless with gifts. Drawing names and focusing on a singular gift for each group of loved ones can be a great way to stick to a budget without missing any of the holiday cheer.

Bonus: you can always keep your gift recipient a secret to add a little spice

3. Gifting experiences instead of presents

One new trend we keep hearing about is planning a shared experience instead of exchanging gifts. It’s easy to stay busy throughout our everyday lives and forget to carve out time to see the people we love.

Planning a getaway, staycation, or adventurous trip together can be the best way to save on the cost of buying gifts while making just a little more effort to give people what they really want, time with you.

Ways to plan for next year

Maybe you already know your budget is blown for this year. Don’t get discouraged! It happens to all of us. You can always use your current experience to help shape your future goals.

• Keep a running list of gifts that are perfect for your loved ones and look for sales throughout the year. The added thoughtfulness is sure to make it that much more special.
• Put money away each month just for Christmas shopping. A small amount from each paycheck or per month can go a long way. $20 per pay period? You’ll save up around $500 without having to make any major changes to your budget.
• Talk to your family and friends in the summer months to decide on how you want to celebrate together. Whether it’s drawing names, planning a trip together instead of presents, or another fun idea, there’s always an alternative to racking up debt on holiday parties and gifts.