How To Have a Happy, Debt-Free Holiday

How To Have a Happy, Debt-Free Holiday

Thanksgiving is just days away and will be kicking off the holiday season with late night door busters and Black Friday super sales.  We all know it’s way too easy to get caught up in the mania of holiday shopping.  With seemingly infinite financial demands already weighing on you, it’s tempting to get suckered in by the big stickers advertising clearance and percentage-off sales - pressuring you into spending on “unbeatable deals” before time runs out. 

Making financial decisions under pressure, however, rarely proves to be a sound fiscal strategy.  If budget is a concern - and let’s be honest, it’s always a concern - take some time now to map out a strategy for your holiday spending that won’t leave you with a painful debt hangover come New Years Day.

Identify Your Spending Limits.  Hopefully you’ve already set aside some savings for your holiday travels, parties, and gifts.  But if not, make an honest assessment of what you can afford to spend.  By setting limits on your spending ahead of time, you’re less likely to push the boundaries of your budget when you come across something impossibly perfect or tempting in-store or online.  If you know that you have a tendency to overspend, consider using either cash, spending tracking software or apps to strictly enforce your self-imposed limits.

Learn to Say No.  Allow yourself to turn down invitations and solicitations that fall outside of your holiday spending plan.  Learning to say no to others is an important part of saying yes to yourself and your personal and financial priorities.

Prioritize.  Speaking of priorities, make a list of everything you’d like to fund this holiday season - from decorations to stocking stuffers - then prioritize that list from most important to least.  You may find that your previously designated spending limits don’t allow you to afford everything on your wish list, but with your wishes prioritized, you can easily identify which items to forgo.  Giving up the Christmas wreath to afford a train ticket to spend the holiday with family isn’t such a bad trade off, after all.

Cash In on Deals.  While holiday deals shouldn’t pressure you into overspending, it’s always a good practice to keep an eye out for good buys.  In addition to researching specials and promo codes, make the most of cash back, price comparison tools, and other savvy shopping strategies.  You don’t have to wait in line in the freezing cold at midnight to enjoy the perks of mobile and online apps like RetailMeNot and PriceGrabber.

Plan For Next Year.  Holiday planning in November doesn’t quite qualify as “waiting until the last minute”, but the more advanced preparation, the better for your budget.  For example, if you get your holiday decorations right after the peak season ends in early January, you can enjoy the benefits of clearance pricing.  And if you start setting aside a small percentage of each paycheck in January your “giving” or “holiday” account should be more than large enough to fund all of your holiday spending priorities come November of next year.

Stay Grounded in What Matters.  Above all, remember to stay grounded in what the holidays are all about - love, friendship, family, etc.  Who you spend time with and the memories you share in together with will ultimately matter much more than how much you spend.