This time of year not only brings the joy of giving but also the headache of holiday debt.
Even though you want to get everyone on your list the gifts they would like, financial stress and anxiety reign.
This makes it really hard to relax and enjoy the holidays. Instead, your mind is focused on the bills that will be due come January.
How will you pay them?
What will you do?
If this sounds like you, you’re not alone. Many Americans struggle with holiday debt, even those who consider themselves financially responsible and who save and budget.
Consider, then, these five tips to lower your financial stress.
1. Have the Conversation First
Before the holidays even arrive, sit down with one another and talk about what they mean to each of you. Is this supposed to be a time of gift giving and celebrating? Or is connecting with family and friends? What’s most important?
Perhaps the meaning of the holidays for you is giving back to others, whether it’s someone you know or strangers in your community. Or it could be a combination of all three… or more.
Whatever the case, be open with each other about the meaning of the holidays. That way you can be on the same page when it comes to financial expenses.
2. Set Limits on How Much You’ll Spend
Next, establish reasonable limits on how much you intend on spending for the holidays.
For example, if you want to give a gift to everyone on your list, set a dollar amount that is equal for everyone. Don’t be tempted to overspend on one person. Instead, be consistent with your spending.
Maybe everyone this year just gets a pair of socks. It’s a great gift idea because everyone needs them!
It also helps to communicate with extended family about spending expectations. That way no one feels hurt or caught off-guard. Plus, you don’t want someone to get the same gift twice!
3. Do Something Meaningful for You
Remember that the holidays don’t always mean giving presents. Sometimes the best gift that you can give is your time.
Consider volunteering at a food pantry or shelter this year. A quick online search will reveal plenty of opportunities in your community to serve.
Even better, create a family tradition of volunteering during the holidays. It’s a great way to teach your children the value of service and how even the smallest of gestures can go a long way towards helping others.
4. Jump on January Savings
Guess when the real holiday deals occur? It’s in January!
After the holidays, most stores tremendously slash prices on holiday-related items.
For example:
- Greeting cards and money holders
- Wrapping paper
- Gift bags
- Packing material for presents (tissue paper)
Rather than pay full price for these items, why not get a jump-start for the coming year with buying your supplies in January?
When you do, make a list of everyone to whom you intend to give a gift. Of course, this may change throughout the year, but you’ll have a foundation on which to work. Getting this shopping done early will help take some of the anxiety and financial stress out of holiday debt.
5. Think About What’s Important to You
In the end, the holidays shouldn’t be about meetings others’ expectations for the holidays. Whenever we feel we have to meet someone else’s expectations, that creates stress.
It also is a trap for holiday debt. You buy presents or make travel plans to accommodate others, despite the fact that you will have trouble paying for those expenses when they come due.
Instead, focus on what this time of year means to you, not others.
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Holiday debt doesn’t have to cause you anxiety or financial stress. You don’t have to spend a lot of money to make it special. Instead, focus on what’s important for you and your family.
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