The holiday season is one of the best (and busiest) times of the year as we celebrate with friends and family. In the midst of decorations, gifts, travel, outings, and wonderful food, holiday expenses can add up quick.
This is the time of year to give great gifts to loved ones and be generous to our less fortunate neighbors. Rather than causing stress because of uncertain holiday spending, try a little planning! It can go a long way. Consider these helpful steps to spend confidently and make meaningful memories with loved ones.
1. Create and Use a Budget
Determine how much you will spend; set a target total dollar amount that you will spend on holiday-related items including gifts, travel, food, decor, giving, and other events or items. Next, confirm your budget by breaking down the costs per item (and per person with gifts). Total them up and compare to your initial target budget amount. You may find that you can allocate more dollars to gifts, or you may find that you must cut back on a certain item if it makes you spend over your target budget. Consider setting aside a small “slush fund” to cover forgotten or unexpected expenses; start with an additional 10% of your total budget. Finally, commit to a number, track it, and align your spending to it!
2. Need Help? Look Back on Last Year’s Receipts
If you are struggling to get started on your budget, take the time to go back through last year’s expenses. It helps you create a more accurate budget and reminds you of often-overlooked costs. You may also find expenses that can be reduced—or removed entirely. If you don’t have your receipts, reviewing online bank or credit card statements can be just as effective.
3. Cut Down on Other Categories
If you found that your actual spending is likely to be over your target budget (been there before!) do not fret! You still have time to save on other expenses in your life to give yourself the extra cash to meet your ideal holiday shopping list—you can cook at home instead of eating-out for the rest of the month, make coffee at home for a few weeks instead of making coffee runs, and ask for that new sweater you saw in the store as a gift instead of buying it on the spot. With a little squeeze and sacrifice, you can create the holiday experience you’ve envisioned.
4. Shop the Sales
Black Friday may be behind us, but retailers are still eager to capture holiday spending. Compare prices across multiple stores and websites to get the best deal. If you're shopping online, consider ordering multiple items from the same retailer to save on shipping.
5. Consider Group Gifts
Group gifts aren’t always appropriate, but when buying for sets of siblings or families, your budget may stretch further if you combine resources or purchase a gift that benefits everyone. In many cases, experiences—such as a trip or event—can be even more memorable. Parents with multiple children often appreciate receiving fewer physical items.
6. Cash In on Rewards Points
If you have credit card points, airline miles, or other rewards sitting unused, the holiday season is a great time to redeem them.
7. Save Receipts for Next Year
Creating a holiday budget can be challenging, so save your receipts and jot down notes for your future self to make planning easier next time. You may also benefit from setting up a holiday savings fund—whether you contribute for a few months or all year. That said, set a reminder for next year to plan your Holiday expenses early, and allow yourself to fully enjoy the season you’re in!
At the end of the day, the holidays are meant to be filled with joy and lasting memories. At Harvest Point®, we believe your financial plan should reflect the values you hold dear. If you’re not currently working with an advisor, we invite you to complete our Discovery Questionnaire to schedule a 30-minute introductory call. We would love to talk with you about your legacy, values, and goals—and explore whether Harvest Point® is the right fit to help you pursue them.