Is It Beginning To Look Like a Cash-Strapped Christmas?

Conquer a cash-strapped Christmas with these tips for those on a tight budget so you can head into the New Year with your finances still intact.

Credit cards straining the limit, over-due bills, pricey “must-have” gifts, the latest electronic gadgets on everyone’s lists

Wait a minute! Isn’t this supposed to be the joyous holiday season? Learn to budget for the holidays and everyone will have a reason to celebrate.

Sometimes, the thought of being practical about money goes against our wishes to be generous. Yet, wouldn’t our family and friends be happier if we lived within our means? Remember that it truly is the thought that counts, not the high-priced tag.

Is Your Budget Already Maxed Out?

The first step is to take a look at your budget. If you don’t have one, now is the perfect time to start. List all your monthly income in one column. Now, list all your bills in another column, from your mortgage payment, heat, water, electricity, and phone bills to the $10 you spend on lunch each workday.

Subtract the smaller total from the larger. But there is the rub! What if your expenses meet or exceed your income? Now, you must put the holiday gifts on your nearly maxed-out credit cards.

Cut Expenses and Control Spending Now So You Can Avoid Holiday Debt Later

Stop! Go back to your expenses and cut out whatever you can to free up some ready cash.

1. Consolidate credit card debt.

Consolidate three or four high-interest cards on one 0% interest card, and don’t charge more on it. Just keep paying more than the minimum payment to pay down your credit card debt.

Some 0% interest offers last for only six to eight months. Others 12 to 18 months. Either way, be sure you transfer or pay off the balance before the rates rise.

2. Pay cash whenever possible.

When paying cash, it is much harder to overspend. When you run out of cash, it is time to stop spending.

Related: Why We Spend More Using Credit Cards

3. Plan what you will purchase before you shop.

Look through ads, watch commercials, and then make your holiday shopping list. Note the price of everything on your list and add it up to determine if you’re about to overspend. Trim your list if necessary, or come up with less expensive gift ideas.

4. Compare prices.

Often, the same “hot” item is much cheaper elsewhere or comes with a better incentive offer.

For example, a new game I wanted to purchase for my daughter was a couple of dollars cheaper at Walmart, but Target offered a free $20 gift card with the purchase, so it ended up being a better deal. Now, I have two gifts instead of one!

5. Set aside a little money each week in a special holiday fund.

Don’t wait until the week before Christmas to figure out where you’ll get the cash to cover your shopping list. Each week from now until Christmas, find a little extra cash and stash it away.

Related: 5 Ways To Stash Some Holiday Cash

6. Make your own gifts to stretch your gift-giving dollars.

Consider making food baskets, cookie trays, craft items, etc. Use your imagination.

Your thoughtful gift will be appreciated much more than a high-priced but useless gift that just sits in the closet or gets returned the next day.

Related: Inexpensive Homemade Holiday Gift Ideas for the Tight Budget

Start Planning for Next Year

Speaking of the day after Christmas, or whatever holiday you celebrate, that is the time to start planning for next year. You will likely have a similar gift list, so shop all the after-Christmas clearance sales for terrific bargains.

Freeze candy and food items to assure freshness. Many wonderful gifts are half-priced or more for a quick way to save on next year’s gift giving.

Keep your eyes open all through the year. Shop secondhand and thrift stores, garage sales, eBay and similar sites for unique gifts for that hard-to-buy-for person on your list. Cruise the clearance tables, racks, and sections for gifts that only look expensive.

Think how happy you will be when the holidays are over, everyone has gone home, and you realize you don’t have any outstanding bills.

Conquer a cash-strapped Christmas by giving yourself the gift of a holiday budget. Think how good it will feel not to get inundated with holiday bills in the New Year.

Related:

• Sure-Fire Ways To Stick to Your Holiday Budget
• Gift-Giving Etiquette When You’re In Debt
• 15 Ways Your Family Can Save Money This Holiday
• 19 Ways To Raise Quick Cash
• When Santa Can’t Afford Your Child’s Wish List

Reviewed October 2023