Smart holiday season planning.

New York Life | November 15, 2024

The holiday season is one of the most joyful (and costly) times of the year. Between gifts, new outfits, festive foods, and special gatherings, expenses can stack up quickly. No matter which holidays you celebrate, it's easy to find yourself overspending. But starting the New Year stressed about finances? Not ideal.

Thankfully, with a few mindful strategies, you can enjoy a memorable holiday season without emptying your wallet. Here’s a guide to staying on track financially while still making the season special.

1. Create a realistic budget

Set a budget that reflects your real needs—not just an arbitrary number. Review last year’s expenses as a baseline, adjusting for any changes, such as a new family member, moving to a new home, or any other lifestyle shifts. This helps create a realistic picture of what you’re likely to spend and shows areas where you can make cuts.

2. Suggest a gift exchange

Propose a fun gift exchange with family, friends, or coworkers. Buying one gift instead of multiple lets you put more thought into your purchase, stretches your budget, and reduces holiday stress. It’s especially great for big families where individual gifting can get pricey.

3. Price-check on your phone

If you spot the perfect gift in a store, use your phone to check prices elsewhere to see if it’s available at a lower price. Search for online promo codes, too! Many retailers offer price-matching, so ask about their policy to secure the best deal. Comparison apps make this even easier.

4. Get creative with DIY gifts and decor

Homemade gifts and decorations are often the most meaningful. Consider making personalized gifts or holiday decorations with your family. Children, in particular, love craft projects, which creates both savings and lasting memories.

5. Don’t wait until the last minute

Procrastination can lead to rushed purchases at inflated prices. Aim to complete your shopping early, ideally by the end of November. Retailers often increase prices as the season goes on, so planning ahead means you’ll have a broader selection and better deals.

6. Suggest money-saving ideas to your group

Remember, you’re not alone in trying to save. Many others feel the pinch during the holiday season, so suggest a money-saving approach! Setting gift price limits or having each family member contribute a dish can help everyone celebrate without overspending.

This season, you don’t have to sacrifice joy or style to stay within budget. A bit of planning and creativity will keep your finances in check while ensuring a wonderful holiday. Follow these tips to make the most of your holiday without breaking the bank.

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