1. Get a baseline for where you are financially. Most of us spend a lot more money during the winter holidays than we do during any other season of the year. We may have increased travel costs and higher grocery bills along with more costs related to decorations and gifts. However, unlike previous years, 2020 had been quite different.
The coronavirus pandemic has changed our lives in numerous ways and may have drastically changed our financial outlook. While some young professionals have saved lots of money from decreased entertainment costs or travel expenses, other young professionals might have experienced a salary decrease that may have put a huge strain on their finances. Regardless of which experience you may have had, it’s critical to get a baseline for where you are financially so you know how much money you can afford to spend during this holiday season.
2. Have spending limits for different costs. After examining your income and budget for the remainder of the year, it’s important to make a plan for how much you can afford to spend during the holiday season. Many of us have desires to bless those we love with elaborate gifts this holiday season, but before we overspend, it might be wise to make a spending plan.
When I make my spending plan, I have categories of expenses and an estimate of how much I plan to spend on each thing. I set a certain amount for travel, decorations, gifts, food, etc. That way, when I’m shopping or thinking of gifts to purchase, I have a set limit in mind of how much I can spend. It’s one of the most effective ways I attempt to keep my spending in check.
3. Set expectations with yourself and others. Once you see where you are financially and come up with spending limits, it’s important to set expectations with yourself and others. If you know that money is tight and you don’t plan to decorate your home as much as you have in years past, then be sure to let your family know so that everyone is on the same page.
If you can’t spend quite as much money on gifts for your loved ones, then let them know in advance and think of other ways show them how much you care. If the pandemic has precluded you from traveling to see your family like you normally would, then be sure to find other ways to show your appreciation.
5 Ways to enjoy the holidays without destroying your budget
The holiday season usually comes with dedicated time off to spend with the ones we love. Instead of going into debt doing expensive activities or forgoing any festivities altogether, how about finding a middle ground? Here are some affordable ways to enjoy the holidays without destroying your budget.
1. Explore low-cost activities in the city. Whether you live in a big city or a small town, there are usually several low-cost activities in the area to explore during the holidays. Check out winter decorations in the city and Christmas lights as you walk around your local area. Spend the weekend going ice skating at a park or visit an indoor rink. If you work for a corporation or are in involved in various community organizations, you can also check out company Christmas party or some holiday soirée filled with young professionals in the community. Search the internet, ask your friends, and skim your local newspaper to find out about various affordable activities in the city around the holidays.
2. Buy inexpensive, meaningful gifts for friends and family members. Gift giving is a great way to show our gratitude for others. Many times it can be quite rewarding. Instead of lamenting over the realization that we cannot purchase new Iphones, designer clothes, or hefty gift cards, why not purchase inexpensive meaningful gifts for the ones we love instead? If you need some ideas, try giving a Christmas basket filled with the person’s favorite desserts, a holiday stocking filled with pajamas, hot chocolate, and other trinkets they can use to relax and watch a holiday movie, or even gifting them framed photos of a happy memory, wine they’d enjoy, or a book they’d find intriguing.
3. Search for discounts on holiday travel. With the holidays usually comes lots of travel. Oftentimes, it’s the travel expenses that end up being putting a serious dent our budget. In order to prevent this from happening search for discounts. Look to see if you have earned any rewards points from credit cards or if you qualify for any discounts on transportation services like Uber or Lyft. You could also search Groupon for affordable travel packages and skim AirBnb for reasonably priced lodging options. Regardless of which route you take, spending a little time searching for travel discounts may be worth your while.
4. Enjoy holiday festivities on existing subscription services. In this current digital world, many of us have a variety of different ways we entertain ourselves. Whether it is listening to Apple Podcasts on the way to work, dancing to our favorite playlist on Spotify, laughing at the newest comedy on Hulu, or watching a popular movie on Netflix, we have a variety of subscription services we use for entertainment. The majority of them are either free or some inexpensive bill we pay each month. As we look for ways to enjoy the winter season in an affordable manner, why not make use of the things we already have? Whether it’s a Christmas playlist, holiday episodes of our favorite shows, or adorable Christmas movies from our childhood, we could all find ways to enjoy holiday festivities on the subscription services we already have.
5. Participate in fun activities at home. If you’re looking for ways to enjoy the holidays without leaving the comfort of your home, there are several things you could try as well. You could decorate your home and Christmas tree as a family. If you’re like me and crave a good amount of social interaction, you could invite some of your close friends over to watch holidays movies and drink hot chocolate. You could even adopt the mindset of some of my coworkers by hosting a holiday potluck for some of your associates. Lastly, you could play fun holiday games, do puzzles, or bake cookies with your loved ones as well. Either way you spin it, there are fun and affordable things to do during the holidays at home.
Tell me, what are some ways you plan to enjoy the holidays that don’t require you to spend a lot of money?
Priceless Advice for the Holiday Season
This is one of my favorite times of the year. Thanksgiving dinner with my family, cool air that calls for cute winter clothes, and holiday festivities that invoke the spirit of love and positivity. As we embark on this season, inevitable holiday sales may tempt us more than we can imagine. In order to deal with this temptation and stay within our budgets, we may need a little motivation to help us practice self-control. Here are a few of my favorite money quotes for the holiday season:
“No amount of money or success can take the place of time spent with family.” – I love this quote because it reminds me of what’s most important. In my quest to find the perfect holiday gift, advance in my career, and make the most lucrative investments I can, I am reminded that it’s quality time with my family that matters the most. This quote also gives me permission to take a day off from writing articles or put my phone down for a couple hours to enjoy a holiday movie, have a large family meal, or bond with my brothers over a football game.
“If you want your children to turn out well, spend twice as much time with them and half as much money.” Abigail Van Buren coined these words and although I’ve never met her and don’t have children, this quote still resonates with me. When I reflect on my childhood and the holiday season, I have so many fond memories. Not because my father bought us the most expensive gifts or because we took the most elaborate vacations, but because we spent plenty of time together. My brothers and I went on to become the Vice President of a large corporation, a financial analyst, and a medical doctor, respectively, because of the life lessons and shared support we gave to one another. Whenever I’m stressed about spending money on gifts, I remind myself that what I lack in money I can make up for in quality time.
“Don’t save what left after spending, but spend what’s left after saving.” This Warren Buffet quote helps me keep my priorities straight, especially during the Christmas season. Black Friday is quickly approaching and I’m always tempted to spend much more than I had planned. When I was a young graduate student living in DC I’d often purchase items “on sale,” then spend the rest of the month praying that I had enough money to cover my remaining expenses. Fast forward to my current life as a doctor, and I’m definitely doing things differently. I have money in certain accounts reserved for bills. I also have money in a “holiday account” through which I saved money during the year so that the gifts I plan to purchase don’t dismantle my financial goals. I’ve learned to make sure my bills are paid, save a certain amount each month, and only spend what’s leftover.
“We make a living by what we get. We make a life by what we give.” This Winston Churchill quote is something I try to remember throughout the year, especially during the holiday season. While I have several financial goals, money alone does not bring happiness and meaning to life. Instead, it’s the spirit of generosity and how we seek to positively influence the lives of those around us. Rather than only thinking of myself and my family, I try to remember those in need and give to other charities and organizations as well.
Tell me, what are some of your favorite money quotes for the holiday season?