How to Maintain Financial Sanity Over the Holidays

People walk past a Christmas tree in a shopping center in Los Angeles on Dec. 22, 2022. Mario Tama/Getty Images

Once again, we find ourselves excited about the festivities, celebrations, gifts, special dinners, and buying our holiday decorations. Traveling to visit friends and relatives means the airlines are going to get a lot of business.

From pumpkins and costumes to turkeys and cranberry sauce—and from wreaths to trees and twinkling lights that make the glitter glow like iridescent icicles—this is one of the most wonderful times of the year. Black Friday and Cyber Monday deals are simply too fantastic to pass up!

Perhaps last year, by the time all the wrapping paper was picked up and the tree denuded of decorations and disposed of, your credit card bill ended up higher—a lot higher—than you had expected. Too high, in fact, to pay off in the time frame that allows you to avoid being charged interest. You check your credit card agreement, and for the first time, you are aware that the card requires 22.5 percent interest on any balance you carry.

Take out your calculator. Paying off the balance with interest means it will take five or six months to pay the card off completely. Worse, both you and your partner are hearing rumblings that your employers may be considering downsizing—layoffs after the holidays. The fun is over, but the anxiety is just beginning.

Want to manage this better, and control it this year so that you don’t get these unpleasant surprises? Here are some ways and means for you to better manage.

Budget

Yes, you just knew that one was going to be on the list.

You can use apps such as Quicken Simplifi to track your spending with the budget list created. The categories in your budget might consist of gifts, travel, holiday meals, decorations, and other planned expenses.

Set a total for each of the categories, and then break each out specifically. For example, you might say, “I’ll allocate $200 this year for gifts.” From that planned amount, you then list each person who will receive a gift, with a set amount that is to be a maximum expenditure.

Take Advantage of Sales

Start looking at purchases early enough to take advantage of special sales, such as Amazon Prime Day.

Avoid having to go out late in the season and buying a lot of different things all at the same time.

Save on Travel

Travel costs go up a lot as you approach the holiday, so stay with friends or family to save on hotel costs.

Pack snacks and use GasBuddy to find the cheapest gasoline during the trip if you’re planning to drive instead of fly.

Leverage Your Talents

Leverage your own talents, or the talents of others you know, to create decorations from scratch, and perhaps do the same when it comes to gifts. Many ideas can be found on Pinterest. Call on your artsy friends for help. Here are some gift ideas that can be created rather than purchased:

• Baked cakes, cookies, gingerbread houses, Christmas crackers or toffee, desserts, and signature stylized breads
• Albums and photo books if you have enough pictures to cast and create a theme, and photo clocks
• Knitting (scarves), candles (scented), bracelets (paracord, braided), customer aprons (embroidered), custom belts (leather) and necklaces, and earrings
• Terrariums (this was my own choice for gift-giving when I was younger)
• Custom chalkboards and chalkboard coasters (even chalkboard gift wrapping)
• Homemade soaps, homemade bath salts, and bubble bath bars
• Woven felt baskets, clutches, tote bags, and pillow covers
• Jam jars and bags of treats
• Custom gift baskets—fruit, cheeses, crackers, chocolates, and other desserts
• Wind chimes, ornaments, wreaths, holiday decorations, paintings, clay mugs, and key chains

Use Rewards

Take advantage of any cashback programs and use your credit cards that reward points. Rakuten and similar platforms offer cashback on purchases.

Better yet, try to stick to cash.

Host a Potluck

Instead of shopping for the food needed for an elaborate holiday dinner, what about inviting the guests for a potluck instead? Everyone brings a dish; maybe even assign the specific dishes you want each person to bring with them to share.

Similarly, maybe a gift exchange, a group gift swap, Secret Santa, or some clever games that involve having to give fewer and less expensive gifts.

Shift From Gifts to Experiences

Instead of expensive gifts or holiday decorations, shift the strategy to alternative plans and ideas that don’t require so much money. Watch Christmas movies at home, or take a drive to see the decorations in the cities and neighborhoods, especially those that are created just for the season.

Look for local events hosted by your town, city, county, or even a local church.

Have a nice hot cup of cocoa at home with others you want to be with.

Money doesn’t provide the memories; the meaningful experiences do.

Get ready to be inundated with marketing promotions aimed at getting us to part with our money, such as “Your family will have a much better Christmas if you buy ...,“ ”Your kids will experience real joy if you get this for them,“ ”It isn’t Christmas without ...”

This calls for self-discipline, budget control, planning, and sticking to your budget and plan so that you won’t ever again face that awful anxiety of post-holiday season handwringing over how you are ever going to pay off all those bills.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.