How to Manage Holiday Stress & Spend Less

Managing your expenses and saving money are important parts of reducing holiday stress. Here are some tips to help you spend less and enjoy the season…

Holiday time is devoted to fun, family, and fellowship. It is also, more often than not, devoted to excess. And while that excess can bring big “oohs” and “ahhs” on Christmas morning, they also lead to a lot of sighs and groans in the new year.

Studies show that we eat more, drink more, and spend way more during the holidays, and it’s stressing us out. We may be feeling more upbeat, loving, and hopeful at this time of year. But we are also struggling with stress over our obligations, expectations, and limitations.

I think my blood pressure just went up writing that sentence. But that’s because it’s true.

We sign on to bring side dishes and host parties, adding obligations to our already-full plate. The time crunch leads us to spend more than we want for the convenience of pre-made platters of food and online shopping for the upcoming event.

We want to give our kids an awe-inspiring Christmas morning and make our friends and family feel special. So, we spend more than we should on gifts and wrapping.

We want this holiday season to be as fun as last year, or maybe better, so we fill our calendars and our credit cards to the max. But we soon feel the pressure of running up against our own limitations. Not enough time, not enough money.

How do we enjoy the holidays when we are stressed out and overburdened from November until January?

Nothing says “holidays” like having a budget. Ok, maybe a lot of words say “holidays” better than budget, like eggnog and pumpkin spice. But budget is the only one that will keep you from a holiday hangover when next year rolls around.

Managing your expenses and saving money are important parts of reducing holiday stress. So are sticking to a drink limit at the office Christmas party and only eating one slice of pie at Thanksgiving, but that’s another post.

Living more frugally is hard during the holidays, no argument there. Like sticking to a diet, it’s easy to let a few cheats here and there completely derail the plan, leading to the very scientifically termed “what the hell” effect—that moment when you feel you’ve messed up, so what does it matter anymore.

How do you spend less, manage your expenses, and stick to a budget, all while avoiding the temptations posed by the holidays?

Here are a few tips to help you lower your financial stress this holiday season.

 

How to Manage Holiday Stress & Spend Less

 

Set a budget as early as possible

Don’t wait until December to set a spending limit. The sooner you can figure out how much you want to spend and how much you can spend, the easier it will be to stick to the budget. This also gives you time to save money in the earlier months and catch things on sale throughout the year.

Create a gift list

I am the queen of wasting money on ho-hum gifts and then finding the perfect thing. That is, after I’ve overspent on things I’ll need to return, if I can. I’ve learned that the best way to avoid this is to have a master gift list for everyone I plan to buy for. I can add to this all year long, also helping me get the best deals as they happen.

(You can get a free copy of my Master Gift List printable here, in my Homemaker’s Toolbox.)

Focus on things that don’t cost money

It’s easy to get sucked into the gift-giving frenzy and forget that the holidays are more than that. The dinners and parties and Secret Santas are just the circumstances, but the real reason people love the holiday season is because of the traditions and people that make it special.

Serving Thanksgiving dinner in a soup kitchen, decorating the house while sipping hot cocoa, and driving around with the kids to look at neighbors’ Christmas lights don’t cost much, if anything. Look for no-spend ways to celebrate the holidays with the people you love.

Pay cash this holiday season

If you’re putting your Thanksgiving dinner and December gifts on your credit card, promising yourself that you’ll pay later, you probably already know how the story ends. We spend more than we meant to, pay the minimum when the bill comes in January, and roll the heavy-interest balance over month to month until the next holiday season.

Paying cash hurts because we see our money leaving us in real-time. It also keeps us from spending more than we have. I’d even go so far as to say skip the debit card. Sticking to cash keeps you within your budget and also keeps you from impulse purchasing yourself into debt. The envelope system is perfect for keeping yourself in budget, even during the tempting holidays.

Your kids don’t need as many gifts as you think

Over the years, we have spent less and less on our kids’ gifts. We’ve realized that getting them one signature gift, something they are hoping against hope for (so long as it’s not exorbitant) and then some smaller gifts is just as satisfying as a tree full of countless wrapped boxes. We also have them open slower to savor the anticipation and really appreciate each gift.

Try to take the focus off the presents, and instead put it on the day. Play games, have an elaborate breakfast, or sing carols together. It’s never too early to teach children the meaning of a holiday and how to step back from the consumerism that can overshadow it.

Make your holiday season a series of wonderful traditions, focusing on the people and experiences, instead of presents and overindulgence. Staying in your budget and never exceeding the time and money you have will lower your stress levels this year. It will also let you enjoy the beauty of the season, without the holiday hangover in January.

 

What do you do to manage stress and spend less during the holidays? I’d love to hear your suggestions in the comments!

 

Already thinking about after the holidays? Check out these posts:

How to Keep Post-Holiday Clutter from Taking Over Your Home

How to Declutter Your Children’s Closets

Why Less Stuff Brings More Happiness

What are the 12 Days of Christmas? And how to celebrate them