How you can avoid the Christmas regret

Christmas will be here before you know it. Don't get caught off guard! Start preparing now, so you avoid putting Christmas on the credit card.

It may seem early still, but Christmas is coming. It's less than four months away! Don't get caught putting Christmas on your credit card. Don't spend the next six months or more filled with regret trying to pay back what you spent.

Here are 3 ways you can avoid this financial mistake:

1. Decide on a budget and save up. Make a monthly transfer to a designated savings account. I save $200-300 each month leading up to Christmas depending on my budget and how long I have to save.

2. Don't overdo it with gifts! You don't need to spend thousands of dollars to make Christmas memorable. I plan one larger, more expensive gift for my kids. The rest of the gifts are inexpensive and useful gifts.

3. Buy used items when possible. There are many people on Facebook Marketplace who sell refurbished items. I purchased a refurbished bike for my daughter. It looked brand new and she didn't know the difference!

---

Why have a budget for the holidays?

A holiday budget is essential, especially if you are paying off debt, in order to spend a reasonable amount for you. This won't be the same for everyone. Depending on your income or financial situation, your budget may be higher or lower.

The pressures we feel to make the holidays "magical" can influence how much we spend on gifts each year. You may feel pressured to get your kids exactly what they want each year, even though they want more and more expensive things as they age. You may feel obligated to purchase gifts for every single person in your family, even though your family is large and the costs add up. You may feel pressured to travel to visit family, even if you are already stretched thin living paycheck to paycheck.

It is so important to develop a budget that is smart for you and your family right now. If you are struggling to pay regular bills, you shouldn't be spending a large amount on gifts or traveling. Don't be ashamed to say "It isn't in the budget this year." You need to do what is right for you and your family.

Planning ahead with your holiday budget can make a big difference in terms of how much you can actually afford to do. When you plan ahead by saving up for gifts or by spreading out the purchasing, you won't have to spend so much all at once. You will know what to expect for each purchase and won't be spending the new year paying back credit card debt because you overspent on gifts.

Times are hard. There is no shame in cutting back. Be smart about your budget, and do what is right for you.

---

Don't stop there!

If you think a holiday budget makes a difference for your bank account and stress levels, a monthly budget for your regular expenses will be even better!

Put together your monthly budget and stick with it for at least 3 months. You will notice a huge difference in how you feel with your money.

Struggling to budget? Book a complimentary Discovery Session to find out how financial coaching can help you get started and stick with it.

Book Now