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Tis the season for emotional spending, so I’m arming you with 5 simple ways to
stick to your holiday budget. If you’d like to start 2025 without a Christmas credit
card hangover (you remember the feeling), then take to heart the tips below.
1 Make your holiday gift list and check it twice.
Grab your phone or a piece of paper and list all the people for whom you
typically purchase a holiday gift. Now, it’s time to shorten that list. Are you
buying for certain people out of guilt or habit? As the years pass and family
members get married and have kids, more and more people are added to
our holiday shopping list. (Yet, somehow, no one ever seems to come off
the list!) Now our family typically hosts white elephant gift exchanges with
a fun theme or draws names, so only one gift needs to be purchased per
person.
2 Talk to your extended family members.
If you’re still buying for your cousins, aunts, uncles, nieces, and nephews,
it’s time to initiate this conversation with your extended family. When
everyone’s pleasantly full of turkey and stuffing after Thanksgiving dinner,
that’s the perfect opportunity. Chances are they’ve been thinking the same
thing. If your family typically goes in together on expensive gifts for mom
and dad or a vacation, you might need to have “the talk,” explaining why
you’re opting out this year. Be firm yet positive. “We won’t be joining
everyone for Christmas at the beach this year because we’re focusing on
our goal to pay off our credit cards.” Just because you’ve always done it or
everyone else is doing it doesn’t mean you “have to” as well.
3 Create a budget for each person on your list.
Now that you have your final list of gift recipients, assign a dollar amount to
each person. Does the total amount fit into your family’s overall budget? If
not, you might need to dial back the numbers. Now, stick to it like glue!
This means taking your list with the dollar amounts for each person with
you when you are shopping, either in person or online. If you use a
personal finance app like Rocket Money or Monarch, create a budget
category specifically for holiday gifts.
4 Shop around for the very best deal.
If you wait until the last minute to shop, you probably won’t have time to research your purchases and find the best deal. You might snag the best deal during Black Friday or Cyber Monday sales. If you’re shopping online, open a new browser tab and
search the website name and “coupon code” or “promo code.” With that tip alone, I regularly save 20-25% on my purchases. No one but you needs to know that “Santa” scored a deal!
5 Know your emotional spending triggers.
Do you purchase gifts for others out of pure joy and excitement? It’s easy to overspend on the holidays when shopping for those you love is so damn fun! People with this
tendency shouldn’t start their holiday shopping too early. Why? Because it’s too easy to find more adorable baby clothes for the toddler (or trendy makeup for the teenager) on your list, even though you’ve already “finished” their shopping. Do you purchase gifts out of guilt or obligation? You can’t compensate for being absent from a relative’s life or putting your kids through a messy divorce with presents. You do that with your
presence. Along with a reasonable gift, put time on the calendar with the person you tend to buy for out of guilt. (If you need more help in this area, give yourself the gift of my book, Money is Emotional: Prevent Your Heart from Hijacking Your Wallet.)
Which of the 5 simple ways to stick to your holiday budget will you implement
this year? Do you have a tip to add to my list? Connect with me on Facebook and
let me know!
Meet the expert:
Christine M. Luken, Financial Dignity® Coach, is the founder of the Wealthy Woman Book Club™ and the host of the Money is Emotional podcast. Christine has coached hundreds of high-earning professionals, business owners, and divorcing women to pay off staggering amounts of debt and massively increase their net worth. The author of four books and founder of the Wealthy Woman Book Club™, Christine blends wise money management with emotional intelligence.
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