Christmas is fast approaching and that means it’s the most wonderful time of the year 😊. I absolutely love the holiday season; however, I’d be lying if I said it’s not stressful at all. There are so many people to give gifts to: family, friends, mailman, boss, garbage men, etc. I like to be generous at Christmastime because it is my favorite time of year and I want the people in my life to know how much they are appreciated. I’m sure many of you feel the same way. This is why it can be very difficult to remain on budget. Here are some tips on what to do if you find you’ve overspent on the holidays.
You Didn’t Budget Appropriately
Maybe you forgot to budget for Christmas gifts because you didn’t think you needed to, but then you realized you don’t have enough money for Christmas gifts and to meet your goals. Don’t panic! If you’re unable to meet your savings goals in the month of December, for example, try to double down in January if you can. At a minimum, contribute as much as you can afford to in order to get as close as possible to meeting your goal and then use the next month or two even to play catch up. Always make sure you pay all your bills timely, as well.
You Can’t Afford to Pay Off Your Credit Card
You went overboard with the gift buying, but didn’t realize it because you were charging everything on your credit card. You didn’t max your credit card out, but now that you look at the bill, you realize you don’t have the cash to pay it in full. You have a few different options here. If you have credit card points, you can apply them to your balance in hopes to get the balance low enough that you can pay the remainder off this month.
If you do not have points, or do not have enough points, then you should pay as much as you possibly can. If you can’t afford to pay off your credit card in full for the month, don’t just pay the minimum. Always pay as much as you can, as you are charged interest on whatever portion of the balance is carried to the next month and credit card interest is not low! Try to make sure you pay off your full balance the following month, so you are not charged interest more than once.
You Simply Don’t Feel Comfortable With How Much You Spent
If you have not yet given people their gifts, but feel uncomfortable with how much you’ve spent, return the gifts and purchase something cheaper. I always tell people not to feel pressured to spend a lot just because someone else is or because you don’t want to be judged. It is not worth going into debt to buy people things. The people you are buying gifts for will have the same feelings for you whether you get them a big gift, small gift or no gift at all.
Another option if you’re feeling financially tight, but have already purchased the gifts, is to ask someone if they would like to go in on the gift with you. For example, my siblings and I often go in together on a gift for our parents. This works out nicely because we are still able to give our parents a bigger gift, but the financial burden is much less.
Although it may be too late to change your habits for this holiday season, it is never too late to plan for the next one. I recommend budgeting ahead of time and trying to save a little bit each month, or over the course of several months leading up to the holidays. Also, if you can spread out your purchasing across various billing periods, this can also help reduce the financial burden. Tell people you are on a budget and ask if they are willing to stick to the same gift limit as you. In lieu of exchanging gifts, opt for an experience together, such as going out to dinner or lunch.
