Budgeting During the Holidays (3 Minute Debt Break)

The holidays are a time to eat, drink and be merry! But the pressure to celebrate   the season can easily send your finances into the red for months. The desire to do the holidays in a big way could see your spending get carried away! There are plenty of ways to enjoy the season without blowing your budget and making the new year financially difficult. 

First, put a limit on your spending and set a maximum amount you’ll pay on all gifts. Otherwise, you might find yourself accounting for your purchases when the credit card bill comes at the end of the month. 

Draw names and reduce the number of gifts for everyone if you’re part of a large group. It’s rarely practical to buy gifts for every family member, friend, and co-worker on your list. You may end up spending more than you can afford, struggling to decide who does and doesn’t get a gift, or resorting to small, forgettable presents for everyone just to keep things affordable. 

Another easy way to reduce spending during the holidays is to leave the credit card at home. Make this holiday an Interac-only affair. Whether you save up throughout the year or simply find a way to factor the added costs into your December budget, find a way to use only Interac and cash for your holiday spending. You’ll thank yourself come January.

A great way to save is to eliminate the guesswork. Be straightforward with family and friends about what you do and don’t need. It may feel awkward at first, but this simple act of honesty can be extremely helpful for giver and receiver alike. You can save time for your friends and loved ones, and even save them some money by peppering in a few low-priced items. 

And keep it small! Save gifting and gatherings for those who are closest to you. Keep things intimate and consider this another break from the high food costs of feeding a crowd. You might find sharing time during a cozy get together with your core people more rewarding than you expect.
And as with any budgeting and saving… start early. Start thinking about next year now!  This is truly a safe way to prevent yourself from overspending and going into debt. And you’ll be amazed how much smoother, joyous, and generous the holidays can feel when you’re not constantly worrying about how you’ll pay for it all. 

From everyone at MNP… we hope you and your family have safe, happy, and debt free holiday season!

Subscribe to MNP 3 Minute Debt Break on your favourite streaming service.