Are you looking for ways to avoid debt this Christmas? You are in the right place.
If you are like me, you can get spendy around Christmas. I’m unsure if it’s all of the twinkly lights, the smells of cinnamon, or the Christmas Carols, but I began to justify spending money. You know the stories we tell ourselves, My husband could use this, or my child will for sure learn their ABCs with this new gadget, or my favorite, I’ve worked hard all year long. I deserve to get myself something.
We use our credit cards to spend money on things we think we deserve.
Presents aren’t the only thing we spend money on. We buy brand-new decor, family pajamas, smelly candles, and snacks for our delivery guys.
We attend Holiday parties and Christmas Parades and prepare for travel, amongst many other things. It’s no wonder we go into debt easily during this time of year.
We are easily manipulated into believing we need all the things to have a joyful Christmas when what we need most is joyful traditions and time spent with one another.
Decide Once
When it comes to buying gifts, I have decided that everyone will not get a gift in that season. It became overwhelming to buy for our immediate family, extended family, and friends.
This is an idea from Kendra Adachi and her amazing book The Lazy Genius Way. In the book, Kendra says Decide Once what matters to you. In this case, I am deciding once that kids receiving gifts matter the most during Christmas.
So here’s the plan I came up with. I would buy for our children and our immediate nieces and nephews. Our moms would get gifts on Mother’s Day, my friends would get Galentines Gifts, and my husband and I will exchange gifts on our anniversary. There is no need to buy gifts all year long for every person. This made it super easy to focus on certain groups of people at certain times of the year.
This is a perfect way to save money. Once you’ve decided, stick to your guns.
Budget
Create a budget specifically for Christmas. Your budget will look different each year. As children age, their gifts can be more expensive. Tweens and teens usually want some cool new electronics and plenty of fashionable clothing. Younger kids may adore legos and American Girl Dolls. The Lil ones don’t ask for anything, but we want them to have the world, so we get spendy trying to buy them everything we’ve never had.
Set some boundaries. Start by deciding how much you want to spend this year. It could be $100 or $1000. Once you decide your budget, divvy how much will go toward gifts, decor, food, travel, etc. Make plans to cut back and save toward that goal or make some extra cash on the side to meet your savings goal.
When you know your budget, you can make smart financial decisions that will help you avoid debt.
Use Cash and Track Spending
Who wants to use cash? That’s what you are thinking, right? A lot of people have found this helpful. Not only during Christmas but throughout the year! I, too, have used cash, and it was much easier for me to create boundaries in my spending habits because I could not spend what wasn’t available in my wallet.
If you do much of your shopping online, track your spending to the penny. Sometimes it’s just easier to get online, find what you’re looking for, and have it shipped. I understand this, but be sure to track each transaction to know your spending boundaries.
Avoid Advertisements
You will receive magazines, flyers, and other advertisements via social media and television. Stay strong. Advertisers are masters at making you believe you need a new phone or sofa when you need neither. The cringiest thing they say is, “Come on, You deserve it!” This is all a ploy to get you to spend money you don’t have, on things you don’t need, to impress people you don’t even like.
Shop with a List
Make a list and check it twice. As I’ve mentioned earlier, my gift list is small. My list of decor and festive Holiday items is even smaller. I usually buy a set of family pajamas, a gingerbread house to decorate, and a Christmas puzzle to do together. That is the extent of our traditions. Because I know what we are doing in advance, I buy these things in early October. The money is already spent, and my mind is free to think of the many other things happening.
Your list can be as lite or heavy as necessary for your shopping needs, but don’t forget the list! It keeps you on track while, of course, helping you avoid debt.
Gift Experiences
This is my favorite thing. The older the kids get, the more I want to make this the only gift they receive. Gifting experiences doesn’t have to mean lavish trips (although it definitely could), it means tickets to an event, movie, or museum. Tix to get an Ice cream date with Daddy or a girls’ day out with mommy. It’s awesome to experience
Consider Not Giving Gifts this year.
Maybe I’ve lost you here, but the truth of the matter is, you don’t have to give a gift. Maybe this year you are strapped for cash, or maybe you just give your presence as a present. Either way, don’t feel shame or guilt. You are doing what feels right for you in this point in your life, and gifting may not be a part of that.
Have you tried any of these simple tips to avoid debt during Christmas? What tips do you use to keep Christmas from taking over your finances? I’d love to know.
