Debt Free Christmas- 5 Tips to saving money during the holidays.

Published on 10 November 2024 at 19:42

If you’re reading this blog, chances are you are focused on your financial health and working on goals like paying off debt or saving for an emergency fund. And if you’re like most people in America, you may be feeling a lot of pressure and maybe even obligation this time of year to spend money on presents, dinners, and travel to visit family. According to a recent Newsweek article, almost half (46%) of Americans are still paying off debt from LAST Christmas going into this holiday season. But have no fear, continue reading for ideas to show love to your family and friends without going into debt.

  1. Create a Budget

Yeah, yeah, I know… budgets are boring. But they are truly the best way to avoid debt and make sure you don’t overspend. One strategy is to set a little bit of money aside each month in a sinking fund (read more about sinking funds HERE). But, since we are already in November, I will assume we haven’t done that yet. So, the next step is to see how much extra money you have in your budget and then decide how you want to allocate that. As an example, if you have $250 in your budget for November and December, that gives you a total of $500. From there, allocate how much you want to spend on each person:

  • Spouse- $100
  • Best Friend- $50
  • Sister- $50
  • Mom- $50
  • Work Secret Santa- $20
  • Etc etc etc

 

  1. Consider Homemade Gifts

If we’re honest, most people on our shopping list probably don’t NEED much of anything and some gifts are hit or miss. Sometimes it truly is the thought that matters. Homemade gifts typically cost less than store bought gifts but are more meaningful due to the extra effort spent. And you don’t have to be a craft master to do homemade gifts. There are plenty of things anyone can do with a little bit of time and effort. Even better, you could have your kids help and make it a family activity!

 

  1. Love Language Based Gifts

Let me start with a brief refresher of Gary Chapman’s 5 Love Languages so this one makes sense. The premise is that everyone has a love language that they prefer to communicate love and affection: Quality Time, Acts of Service, Words of Affirmation, Physical Touch and Gifts. If gifts aren’t your loved ones’ preferred love language, consider switching up your strategy. Some ideas are below:

  • Quality time- Weekend away or a reservation at their favorite restaurant
  • Acts of Service- Coupon for you to do a chore they hate or something that would make their lives easier.
  • Words of Affirmation- A letter telling them all the things you admire and appreciate about them.
  • Physical Touch- Coupon for a back massage or a hug on a bad day.

 

  1. Family Agreement to Switch Things Up

If your shopping list is mostly immediate family, consider talking about some of these ideas:

  • Secret Santa Style Christmas- Draw names and purchase for one person instead of everyone.
  • Set a spending limit for gifts
  • Family trip instead of gifts
  • Purchase gifts for others as a family (Angel Tree, Children in Foster Care, etc)

 

  1. Be Okay with Saying “Not This Year”

Getting out of debt and building up an emergency fund takes intensity, but it isn’t forever. Remember that short term sacrifice and saying no now allows you to say yes with no regrets later.

 

Check back here in the weeks to come for more ideas and tips leading up to Christmas!

 

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