Enjoy This Holiday Season: 5 Ways to Manage Your Finances and Minimize Stress
🕐 Read Time 6 Minutes
The holidays are a magical time of year filled with joy and generosity. It’s a season when we give of ourselves to family, friends, and loved ones. We give our time, we give our company, and we give gifts to celebrate the season and each other. We all want our holiday to be the best, the brightest, the most memorable, and because of this, it’s easy to get carried away by the traditions and the festivities.
Even with the current economy of rising prices, high inflation, and feeling like our dollar isn’t going as far as it used to, Americans are still planning to spend lavishly on holiday shopping, with figures surpassing pre-pandemic levels. And even though they may be more discerning in their gift buying with higher prices and less purchasing power, almost 40% of consumers plan on spending more than they did last year.
Whether you plan on spending as much or more than you have in previous years or stick to a tight budget, minimizing your stress and maximizing your finances can be at the top of your priority list.
5 Ways to Manage Your Finances and Minimize Stress
Gift anxiety, financial stress… and even just thinking about gift-giving and the holiday season can make you feel overwhelmed. But with some strategic planning, you can make the most of the holidays, manage your finances, and minimize stress. Start with these five tips!
1. Set a Realistic, Detailed Holiday Budget
Before you get caught up in the rush of the holiday season, take some time to create a budget that aligns with your finances. Take a look at your regular expenses and your financial goals, and set aside a reasonable amount for holiday spending.
Be sure to set specific amounts for each of these holiday budget categories:
Gifts
Holiday decorations
Travel
Entertaining
Special holiday activities and experiences
It can be freeing to have a spending plan in place, as it’ll remove the temptation to spend more than you’re comfortable with, and the accompanying stress and guilt if you do overspend. Holiday budgeting is key to making sure your holiday season remains joyful and free from financial stress. And with a well-planned holiday budget, it’s easier to stay on track with your financial goals.
Revisit your budget throughout the season, and adjust accordingly – this will help you stick to your budget and make sure you’re not spending more than you planned. If you keep a close eye on your finances, you can help avoid any post-holiday financial surprises.
2. Identify What’s Important to You
Know what truly matters to you and your loved ones. Whether it’s creating memories, giving meaningful gifts, or gathering and celebrating with your family and friends, focus your holiday budget on your priorities and what means the most to you and yours, so that you can experience the holidays to the fullest. You’ll reduce your stress, and you’ll spend your money on the things that hold the most value to you throughout the season.
3. Thoughtfully Shop and Give
Gift anxiety just adds to the stress and pressure of the holidays. Whether you’re anxious about what to gift your loved ones, or about the amount of money you’ll spend on those gifts, these tips can help you reduce some of that gift anxiety and holiday stress:
Make a shopping list: Prioritize who you will buy for, focusing on immediate family and close friends first, and remember, you don't have to buy a gift for everyone you know. Prepare a list of people you’re planning on buying for and the gifts you plan on purchasing, which will help you stay on track with your holiday shopping throughout the season.
It’s easy to overdo it while shopping or make impulse buys (this is true even when it’s not the holidays!), and shopping with a gift list can help you avoid those temptations, buy only what’s needed, and stay true to your holiday budget.
Shop wisely: Planning early and shopping strategically can help you get the most bang for your buck: keep an eye out for sales, discounts, and special deals throughout the year so you can shop and spend wisely. Try shopping ahead of the holidays, rather than waiting until the last minute, so you take advantage of any savings opportunities and avoid overspending.
And make sure to take advantage of Black Friday sales – there’s a reason it’s the biggest shopping day of the year! There are bound to be sales and deals on many of the items on your gift list. Try taking cash or a debit card so you’re not tempted to rack up credit card debt and track your spending to ensure you’re staying within your budget.
Creative gifting: One of the biggest anxiety-inducers is thinking of a gift for someone who seems to have everything and needs or wants nothing (don’t we all have someone like this in our lives?). Consider a unique and meaningful gift that will show your friends or family your love and appreciation, without breaking the bank.
Consider gifting personalized or handmade items, subscription services, memberships to places of interest, or experiences such as tickets to performances or events. Creative gifts that go beyond the traditional, store-bought present may be perfect for those you’re having the hardest time buying for.
4. Create Your Own Holiday Traditions
If you find yourself overstressed, overwhelmed, and caught up in the holiday frenzy, ground yourself by remembering your favorite memories of past holidays, and what you and your loved ones have enjoyed together. Reduce your holiday stress and nurture the joyfulness of the season by pausing to focus on the things that are meaningful to you and yours, and create your own holiday traditions from them.
Maybe it’s touring your community to see the holiday lights, attending free local holiday events, giving back to the community, or even something as simple as baking holiday treats or cooking holiday recipes together. Beyond just focusing on holiday shopping and gift-giving, make time for the little things that bring you and your family joy. During this season, limit your exposure to social media so you don’t feel pressured to keep up with the extravagant holiday celebrations you see your peers having.
5. Practice Self-Care
Most importantly, take care of yourself: amid the financial stress and busyness of the holiday season, make sure to take some time to nurture your mind and body. Find time to relax, exercise, or reduce stress through other activities that allow you to focus on yourself for a moment. Self-care will help you recharge so that you can fully appreciate all the joy of the holidays.
You can also take some time to care for your future self by creating a sinking fund for the next holiday season. You can save a little bit each month between now and next winter so you’ll be prepared to handle the extra expenses.
Make the Most of Every Day with Financial Fitness Coaching
Budgeting, spending wisely, and taking care of yourself and your loved ones are strategies you can practice every day, not just during the holidays. Having a plan and taking charge of your finances can reduce stress well beyond the holiday season.
At Financial Fitness Coaching, we work with you to evaluate your needs and goals and tailor our advice to set you up for success and help you build your financial confidence and wealth. To see how we can help you and your business, email us or simply schedule a free 20-minute Discovery Call on our calendar.