Tips For Avoiding A Financial Hangover This Holiday Season

Food and gasoline costs are increasing. Mortgage rates are increasing. My financial balance is the only item that isn't increasing.

If you're anything like me, you'll look at all the Christmas trees and see nothing but flashing cash signs!

So this year, I've scribbled down some ideas for a wonderful Christmas without breaking the budget, as well as a January free of financial hangovers.

Tip 1: Make a budget.

There are several resources available online to assist you in managing your costs throughout the year. I use the Sorted budgeting tool since it is simple to use. I also have a budget app on my phone that I update when I spend money.

When it comes to Christmas, I always make a budget. I do it every year and early in the year.

The amount I have to spend is at the top, and all of the expenditures are below it: presents and names, party charges, and additional trip expenses. If it does not balance, I reduce costs. If it does, I put it into action.

The alternative is stumbling through December and then suffering through January, which has happened previously!

Tip 2: Be truthful with people.

I recently told friends that my husband and I couldn't take them out to supper since it wasn't in our budget.

I stated that we're saving for when our fixed mortgage rate ends to assist soften the pain of a nearly doubling of our current interest rate.

It turns out that our buddies were in the same boat as us! Bring on the palpable relief and a shared pot-luck supper night at our house!

Being truthful offered various advantages. It handled other people's expectations, provided us with a financial break, and made room for others to do the same.

So, if you can't afford all of the decorations this year, say so now. I bet your loved ones will be pleased they can save a little money too.

Tip 3: Be honest about your splurging.

My family has established a $30 gift limit per individual. Everyone has agreed to it, so no one will feel like they are overspending. (And if they truly want to, that's their right!)

You may regulate the budget and provide a small challenge by setting a limited limit: What can you discover that has significance or worth to that individual but doesn't cost a fortune？

I want to purchase a couple of tiny items for each individual within the $30 limit, simply to make the unwrapping more enjoyable.

Another favorite is shopping at op-shops, which not only offer wonderful goods at excellent rates, but your money is also going to a good cause.

When it comes to meals, I always ask everyone to bring a dish. I love to host Christmas Eve, so we make dinner and share it with our guests.

Everyone is welcome to bring anything that meets their preferences (gluten-free, vegan, keto, etc.), and any leftovers are packaged up and brought home.

Plus, I don't have to spend a tense Christmas Eve in the kitchen!

Tip 4: Start saving for next year now.

This is significant for me! The holiday season will return next year, regardless of the economic circumstances. So why not begin preparing for it as soon as possible？

Saving only $5 each week can net you roughly $250 by this time next year. If you double it by $20 every week, you'll have $1000.

I'm not necessarily referring to money in a cookie jar. Buying gifts throughout the year - during discounts or simply whenever you discover a good deal - also helps to take the sting out of Christmas.

Even better, this can significantly assist in avoiding a fiscal black hole in January.

Tip 5: Be polite and gentle to yourself.

We need to take for ourselves more than ever following the previous several years of the epidemic.

Christmas can be a stressful time after what has seemed like a long year. So now is the time to be nice to yourself.

Me？ I intend to keep things low-key, go for a stroll in the woods, and have an extra mince pie.

I'm going to unfollow everyone on social media so I don't feel like everyone else has a larger and better Christmas tree, turkey, and/or present haul.

And I'll be spending time with friends and whanau, as well as living in the analog world.

Christmas is a season for giving, but it is also a time for giving to yourself, and one of the finest presents of all is peace of mind.

So I hope you receive some of it as well, and I wish you and your family a very good holiday season.

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