It’s already in the air! Christmas is just around the corner and with it come expenses that, if we’re not careful, can rock our wallet. So, here are some tips to enjoy the season without ending the year with your account in the red.
Plan Ahead
The most important thing to face year-end expenses is not to leave purchases and financial decisions to the last minute. Make a list of everything you need, from gifts to decorations, food, and any other extra expenses you know will come up in December. Having this list will help you stay focused and avoid impulse purchases.
Set a Realistic Budget
Once you have your list of expenses, set a budget for each one. Be honest with yourself about how much you can afford to spend without compromising your finances. Remember to include outings or social gatherings in your budget, as they can add up quickly if you don’t take them into account. A good tip is to set aside a fixed percentage of your income for holiday expenses, for example, 10% or 15%, depending on your priorities.
Save Progressively
Even though December is almost here, it’s never too late to start saving. You can use the “staggered savings” technique: start saving small weekly amounts and increase the amount as you get closer to December. If you start saving now, even if it’s only 200 or 300 pesos a week, you’ll have a good amount to cover those extra expenses. If possible, open a savings account exclusively for these expenses and avoid touching that money until the season arrives.
Shop Smart and Compare Prices
The holiday shopping frenzy can tempt us to impulse buy, especially when we see deals that seem irresistible. Before you buy, take a moment to compare prices in different stores, both physical and online. Sometimes small differences in price can result in big savings if you are buying several gifts or products.
Also, take advantage of discount events such as “Buen Fin” in Mexico, Black Friday or Cyber Monday. Just make sure you make a list beforehand of what you really need so you don’t get carried away by the offers.
Avoid going Deeper Into Debt than Necessary
Using a credit card may seem like a quick and convenient solution during the holiday season, but it can be a dangerous trap if you don’t have a clear payment plan. If you decide to use it, make sure you don’t spend more than you’ll be able to pay off in the next month to avoid interest charges. A good strategy is to set a specific credit card limit for holiday spending and stick to it.
Make Personalized or DIY Gifts
Gifts don’t always have to be expensive to be meaningful. Consider making personalized or homemade (DIY) gifts. A photo album, homemade cookies, a handwritten letter or a detail that speaks to a shared experience can be more special than something purchased. Plus, these types of gifts often cost less, but have much greater sentimental value.
Take Advantage of Bartering or Gift Exchanges
If your family or friends have a tradition of giving gifts to everyone, propose an exchange. This way, each person only has to buy one gift instead of several. This not only cuts down on expenses, but also adds a fun twist to the game. If you have a crafter, cook or someone who does crafts in your circle, take advantage of bartering! This way, everyone wins and spends less.
Plan Lunches and Dinners with a Budget in Mind
Christmas dinners and lunches are, without a doubt, one of the greatest pleasures of the season. However, they can be quite costly if you don’t plan them well. Make a menu ahead of time and look for recipes that are delicious but affordable. Buy non-perishable ingredients in advance to avoid last-minute price increases and, if you can, opt to buy seasonal products that are usually cheaper.
Another option is to organize collaborative meals where each person brings a dish. This way, not all the expense falls on one person and everyone can share something special.
Use Cash to Control Spending
Although credit and debit cards are convenient, sometimes they can make us lose track of how much we are really spending. A good tactic to control your budget is to use cash. Decide how much you’re going to spend in each category (gifts, meals, decorations, etc.) and withdraw that amount in cash. This way, when the physical cash runs out, you’ll know it’s time to put the brakes on purchases.
Enjoy the Experiences, Not Just the Gifts
Finally, remember that Christmas and New Year’s Eve are not only about the gifts, but also about the shared moments. Enjoy the experiences that don’t have a big price tag, such as taking a walk around town to see the Christmas lights, watching a movie at home with hot chocolate or making crafts with the family. In the end, it’s those moments that will stay in the memory and not necessarily the expensive gifts.
Preparing for year-end spending doesn’t have to be a stressful task. With a little organization, anticipation and some adjustments in our shopping habits, we can enjoy Christmas without financial worries. We hope these tips help you and that you have a holiday season full of joy and good times!