Create a Memorable Holiday on a Budget

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Holidays are a time to be with family and friends, but they can be also expensive. There is no need to break the bank. There are many ways to have a memorable holiday on a budget.

1.Goal:
What does the holiday season mean to you? What does it mean to your family? How can you accomplish this?  Does the holiday mean a ton of presents around a tree? Does it mean the latest electronic gadgets? Does it mean a time when family can spend time together? Does it mean travel to be with friends and family who do not live close by?  Narrow down the actual “reason for the season” in your home.  This will help you with your holiday budget.

2. Budget:
How much do you have to reasonably spend on the holiday season?  Are you still paying off credit card debt from last year’s holiday purchases?  If so, your “Black Friday” or “Cyber Monday” or super special daily deals have accrued enough interest to make them not so fabulous buys.  Keep in mind this year your ultimate goal. If your goal is to create great memories of the family being together, this could change the type of gift you buy.  If your goal is to visit with extended family and friends or to travel, this too could change the direction of your purchases.  If your family loves the gifts and the holiday is largely about the tradition of gift giving, look at the past year, two years if possible, of gifts you have purchased.  Which of these “lasted” as favorites or were used with other family members?  Can you narrow down which gift will really have impact so it is not about the quantity but the quality of the gifts?

3. Priorities:
Talk to your family. Let them assess what the goal of the holiday season should be with you. We tend to be an “I want it all” society.  The reality is we should not put ourselves into debt to create the “all” experience.  What does your family want?  What can you all afford?  In Experiences Not Gifts, I talk about various ways to give the gift of connection instead of material presents.  I also talk about a “hybrid” plan.  You can choose traveling to see family, or doing a “bigger” experience that you have to save up for and giving one needed gift and one wanted item.  Another example is if the magic of Santa’s visit is alive in your home, there could be a stocking with the “necessaries” and a special gift from Santa. The gift to and from each other could be the experience, travel, or big family items like a hot tub. If you have been creating everything for your family but now feel the need to scale back financially, a hybrid plan works beautifully.

4. Expenses in Your Budget:
In order to have a complete and truly effective budget, you will need to be able to know exactly what you need to spend money on this season. I have tried to include a comprehensive list, but if you think of any I have forgotten, please add them!

• Travel Expenses: whether you are traveling by car close by for the day or have a bigger trip planned, calculate gas, tickets, overnight costs, food, pet sitter, and if traveling by plane, bag fees, cost of parking car, and, if necessary, renting a car in the travel location.
• Decorations: do you love to decorate in a holiday theme?  This includes all of the costs associated with this from a tree, candelabra, lights, table settings, wreath, ornaments, and whatever else you may need. You can save a lot in this category by reusing past year’s decorations.
• Food: does your family plan special holiday feasts?  We do. This can carry a hefty price tag.  Be sure to include this in your budget.  This includes any food you will be making as gifts and any dishes or beverages you need to bring to holiday parties.
• Cards and postage: I still love to send the actual Christmas Card in the mail. I am not a fan of the email or Facebook post.  Determine what you feel comfortable with and calculate this into your budget.  Postage also covers any gifts you will be mailing.
• Gifts: This is an area where many people blow the budget.  Look at your finances and your holiday goals.  Determine what you and your family can comfortably afford. This includes all of the gifts for the season, White Elephant parties or Secret Santa exchanges, stocking stuffers, host or hostess gifts (unless you bring food or beverage, then it is classified under food), and all of the gifts for family both immediate and extended.
• Wrapping Paper and Trimmings: There are a lot of creative ideas to wrap gifts while staying under budget. Include costs of the bags or paper, tape, labels (if you have them) for who the present is for, and the bows and ribbons if you are including these.
• Holiday Activities: many of these have become your family’s traditions. Whether you are driving around looking at light displays, or making gingerbread houses, or getting photos with Santa, there are many activities that your family may love to do around the holidays.  Watch for which ones are free and which ones cost money.  Be sure to add cocoa at Starbucks to the budget if you always stop before looking at lights.
  

  

  
  5. Cutting Your Expenses:
  After looking at your list of holiday expenses, are you experiencing sticker shock? I have some suggestions for cutting a few dollars from each category.
  
  
• Travel: Try to stick to day trips and see if a neighbor can check in on Fido. You can have a great family experience within 2 hours of your home, most likely. This will create memories, but still enable you to sleep at home, you can even pack a lunch, and you can “spring” for a bigger event.  For example, I live 4 hours from Las Vegas.  We could take the kids to a magic show. Because the shows are at night, we would sleep there, but we would choose a cheaper hotel, not on the strip that offers free parking.
• Decorations: Make the decorations or use ones from previous years.  Keep watch at your second hand stores the week after Christmas, because many people are cleaning up and organizing and are giving a lot of seasonal items away.  We make snowflakes that we hang all over our home to create a “Winter Wonderland” in Arizona.
• Food: Do you have a big family feast? Have each family member who attends bring a dish, so the meal is more of a potluck style. This way you are not responsible for feeding everyone and the ever increasing cost of food.
• Cards and postage: this is an area I am least a fan of, however, it is effective. I like my mom and pop shops. So, I try very hard to buy in these and calculate the mailing costs as part of my holiday expense budget. However, if you need to send things, it is cheaper to buy off Amazon and get free shipping. You can also send “Holiday Greetings” via email.
• Gifts: if you only pay attention to one area of the budget this year, pay attention to the gifts. Set up a dollar limit for each person in your household. For example, if you can afford to spend $300 on each person, that is it. If they want the new iPhone, $300 won’t cover it. Ask for your family members to send love and warm greetings and a certificate for an experience when they either come visit or when the kids go visit them.  These are what the kids remember.  My niece still talks about horse back riding with Grandpa.
• Wrapping Paper: The funnies are, well funny.  You can be collecting them from neighbors and friends who get the paper.  Start stocking up on the Sunday comics.  The library gives away magazines after a certain amount of time, you can use pages from magazines to wrap.  I get computer address labels and print them out with a holiday image.  I use these as gift tags. I don’t use bows or ribbons-I am just boring that way.
• Holiday Activities: Look at the events your city offers for free. We have a light parade, gingerbread house competition, Valley of Lights, Acker Night (which is an amazing night of 50+ musicians playing in stores downtown), and a county wide decoration competition so you can view entrants lawn decor.  All of these are free or you can donate.  We now have a holiday tradition, we go to the gingerbread house competition, grab a hot cocoa, and then view the Valley of Lights.  The night costs the gas and the cocoa and creates lots of conversation and those warm, gushy holiday feelings.
  
  

  Holiday Budget Planner
  3 pages
  
  An easy way to keep track of your holiday expenses.

  
  In this list I share:
  

  • Projected holiday expenditure
  • 5 categories with space to write
  • Expected or desired amount spent and how much you can actually spent
  • Notes section to celebrate ways you saved money and keep track of ways to help you next year.

  Name

  Email

  Save Money!

  

  This planner helps you outline all of you expenses you will have this holiday season so you can avoid going into debt!

   

6. Earn Before You Spend:
Now that you know how much money you need to create the holiday memory you want, stockpile that money in advance. I have several suggestions, hoping that at least two or three will be a fabulous fit for you. Remember, the goal is not to have it all, but to create a memorable holiday on a budget, so you won’t still be paying for it next year!

• Subscriptions: Look at your monthly subscriptions, which ones can you give up for three months? If each one is $9 and you can give up three, you will save $81.
• Personal “Necessities”: Mine is coffee. I used to buy 3 lattes a week at $5.50 each. In three months I could save $132 if I only bought 1 a week. I still get this luxury, but limit it.
• Sell Stuff: This is a great idea to get the whole family involved in.  Clear the old, whether clothes, toys, books, tools, or kitchen gadgets. I can breathe easier just thinking of the clutter that gets moved out!
• Holiday Job: I know, more work. However, you can earn a lot of that Holiday budget with a seasonal job.
• Gift Cards: Do you have a place where you keep these?  Do you have any money left on any of them?  Use them to buy gifts for others.  If you have a gift card to a store or restaurant you will not use, regift it to someone else who will love it.
• DIY: Making your own gifts is a great idea because the family can also use this time for connection. I made a fabulous body butter and then would add essential oils to it, depending on what I thought the person needed: relaxation, circulation, pain relief, etc.  My son wanted to give one to a favorite teacher who he was concerned had joint pain.  He enjoyed helping make the body butter and choosing the oils that would help this teacher.
• Shop Smart: In the end, keep in mind, often the “markdown” is just marketing. Comparison shop and get the best deal you can.
  

  

Creating memorable holidays on a budget doesn’t have to be difficult or expensive. By following these tips, you’ll be able to enjoy the holiday season without breaking the bank, while creating a memorable holiday that will leave you feeling warm and fuzzy inside!

“Just remember the true spirit of Christmas lies within your heart.” Polar Express