Holiday money hacks
As we kick off December, I thought it would be timely to share some holiday money hacks.
I am a huge fan of the holiday season ~ I love the family traditions, the pretty lights, the amazing food and the joyful feelings.
This wasn’t always the case for me. I vividly remember being a single mom, stretched financially and wanting to bring the magic to my children’s Christmas. I felt an immense pressure & stress during the holidays. I wanted so badly to find ways to make this time special while balancing being smart with my money. I knew that it wasn’t all about money during the holiday season, but the reality is, there are costs that are outside the normal monthly expenses that come up. Over the years, I was convinced I could make it work and found ways to use my money wisely and not just in December. By doing just a few things throughout the year, I found a way to take some of the pressure off during the holiday season, so I could relax & enjoy the holidays with my family.
Here are 5 holiday money hacks to help keep stress at bay during the holiday season:
1. Set a budget
By setting a budget based on what you can do, not what you want to do is the key. First, set your overall holiday budget amount….it should include the extra expenses for things like holiday dinners, teachers gifts, your Christmas tree or holiday giving. Basically anything outside of your normal monthly expenses.
2. Make a list & track it
Having a list, along with tracking your list will help you stick to your budget and helps you avoid impulse shopping. Your list should include all the people you need to buy for, along with a set a budget per person. When you first start you may need to adjust the per person or per gift amounts to find a way to keep it within your overall budget. For tracking, I used to do this in a spreadsheet (yes, I had a holiday spreadsheet😂). Now, there are amazing apps to make this process so much easier. It shows your list by store and gives you a “spent” vs “budget” snapshot to keep you on track. Check out a great app in the tools section on our website.
3. DIY gifts
2008 & 2011 Holiday DIY gifts created by Brian, Amaya and Maira
You don’t have to buy everything! A homemade gift has so much meaning and can be less expensive if you are willing to put in some sweat equity. Our kids used to love giving their grandparents a gift for the holidays…over the years they made various tree ornaments, tea towels with their handprints and coffee mugs. Most of the supplies were picked up from the dollar store and have become the most treasured gifts ever!
4. Reward points
There are so many amazing reward programs out there that fall in line with your regular spending throughout the year. Use them!!! Whether it’s your PC optimum points for buying groceries or cash back on your visa…save it all up to spend during the holiday season. Some of the programs have events where you can maximize your points redemption which makes it even sweeter. This can go a long way to help buy extra groceries, gifts or to support your favourite charity during the holiday season.
5. Annual Holiday fund
One of the biggest and most impactful holiday money hacks is building up a holiday savings account all year long! The end result; a pot of money to cover all of your holiday expenses. This helps to ensure you emerge from the holiday season with no additional debt & less stress to start the New Year! So how do you make it happen? Treat your holiday savings like any other monthly “expense” and put money away each month into a savings account to be spent only during the holiday season. The key is to try to get the budget amount right! Look at what you spent last year, and decide on the amount you want to spend next year. Build this into your monthly budget each year starting in January - set the amount that goes into the holiday savings account & automate the transfer each month so you don’t even think about it! (BONUS HACK: use a high interest savings account to earn a little more interest & keep it separate from your regular savings)
Final thoughts…these are just a few holiday money hacks that have helped take the financial stress out of the holidays so I can enjoy this special time with our family & friends. It takes some work, but it is totally worth it! And bonus ~ we start the year off with no holiday debt & ready to tackle a new year of financial goals 💖
Follow along @inspiredbytru on Instagram or @inspiredbytru on Facebook to see a few of our holiday money hacks in action!