Budgeting Through the Holidays

The holiday season is a time for family, friends, and fun. But for many, it's also a time of stress and anxiety, as they worry about how to afford all the gifts, parties, and travel. If you want a debt-free holiday this year, here are some tips to help you get started.

1. Make a budget and stick to it

The holiday season is a time when your spending tends to increase. Between buying gifts, attending parties, and taking vacations, it's easy to let your budget slip. However, if you're not careful, all that holiday spending can leave you in debt come January. That's why it's important to make a budget and stick to it this holiday season.

Start by listing all the holiday-related expenses you anticipate, including gifts, travel, and entertainment. Once you have a total figure, start trimming costs where you can. Maybe you can buy fewer gifts or scale back on your travel plans this year. Whatever you do, make sure you stay within your budget to enjoy a debt-free holiday season.

2. Shop for gifts throughout the year, rather than waiting until the last minute

The holidays can be a time of financial stress if you fail to manage your finances well. According to a recent survey, the average American expects to spend $1250 on holiday gifts this year. For many people, that means going into debt or using credit cards to finance their holiday shopping. However, there is a better way to approach gift giving. If you start your holiday shopping throughout the year, you can spread out the costs and avoid going into debt. That way, you can enjoy a debt-free holiday season. Plus, you'll have the bonus of not struggling with last-minute gift ideas. So next time you see a great deal on a holiday present, take advantage of it and snag the item for yourself. 

3. Set a limit on how much you're willing to spend on each person

The holiday season is a time when debt levels skyrocket. Setting a spending limit is a good place to start if you're determined to have a debt-free holiday season. Decide how much you will spend on each person on your list, and then stick to that limit. You may need to get creative with your gifts, but the extra effort will be worth it when you're not dealing with debt in the New Year. Remember, the holidays are about spending time with loved ones, not maxing out your credit card. So don't put yourself in financial jeopardy in the name of gift-giving. Set a limit and stick to it.

4. Make your gifts instead of buying them

This holiday season, ditch the credit card debt and give your loved ones the gift of a debt-free holiday season. How? Make your gifts instead of buying them. Not only will this save you money, but it will also show your loved ones how much you care.

There are plenty of easy DIY gifts that you can make with just a few supplies. For example, you can bake cookies or a cake, knit a scarf or hat, or make a photo album. If you're feeling ambitious, you can even make your piece of jewelry or a piece of furniture. No matter what you make, your loved ones will appreciate the thoughtfulness and effort that went into it. So get creative and start making your gifts today!

5. Get creative with gift wrapping

The holidays are a time of giving but can also be a time of debt. If you're looking to avoid going into debt this holiday season, one simple way to save money is to get creative with your gift wrapping. Instead of buying expensive wrapping paper, try reusing old newspapers or magazines. You can also use brown paper bags or even fabric scraps. Be creative and have fun with it! You'll be surprised how much money you can save by getting a bit crafty. And who knows, your uniquely wrapped gifts might be the talk of the party.

6. Have a potluck dinner party instead of going out to eat or hosting a lavish dinner party

While everyone loves a good feast, the cost of hosting a dinner party can quickly add up. One way to save money and enjoy a festive meal is to have a potluck dinner party. Potluck parties are simple to organize and can be a lot of fun. Each guest brings their favorite dish, and the host provides the main course and drinks. This party type is especially helpful if you're on a tight budget or trying to avoid debt this holiday season. Not only will you save money, but you'll also get to sample various dishes and spend time with your loved ones. So, consider having a potluck dinner party next time you plan a holiday gathering. It's the perfect way to enjoy the season without breaking the bank.

Conclusion

Creating and following a budget is the key to staying within your means during the holiday season. By shopping for gifts throughout the year and setting limits on how much you're willing to spend, you can avoid going into debt or spending more than you can afford. Making gifts is also a great way to save money, and it's more personal than buying something from a store. There are many other ways to save money during the holidays, so be creative and not be afraid to try something new. If you need help getting started, reach out to the National FCG  today. They offer credit counseling services to help you get your finances in order before the holidays.