The days are getting shorter and I am starting to get more and more creative with my Thanksgiving leftovers. For me, those are clear signs that we are getting into the height of the holiday season. Looking at my calendar for the next few weeks, there are gatherings with friends and family, gifts to buy, and special meals to plan. Unfortunately, all of these things can add up and stretch an already tight budget even tighter. So, I thought I would share some tips for staying on track with your budget this holiday season. 

Tip #1: Make sure you have an accurate budget

This may seem obvious to some, but I want to explain what I mean here. Many of us are feeling the pressures of inflation as prices rise for all kinds of things. What you may not realize is that many people also engage in “mental accounting.” This means that they try to keep track of their money in their mind. But when prices are rising and changing, your estimate of how much things cost might be off. Additionally, the busy holiday season can mean it is difficult to remember everything we will need to do and buy. This is a recipe for a budget shock. Essentially, it puts us in a position where things are likely to cost more than we expect and we are likely to forget about some things we need. Doing our best to get an accurate idea of what we will need and how much it will cost will give us a better idea of what we need to do to stay on budget. 

Tip #2: Consider modifying traditions, especially expensive ones

Tradition is a powerful force in many of our lives. It can feel comforting to know that some things will stay the same, even as time passes. Additionally, we may feel that others are relying on us to keep certain traditions alive. But if maintaining a holiday tradition means that you are going to have trouble affording things you need, then it makes sense to reconsider. Communication is key here. It can be difficult to talk about money, but it could help explain to family and friends why a particular tradition might need to change. For example, you might host a gathering with friends where you typically provide all the food. But you might be able to talk with friends and let them know that, especially with inflated food prices, that won’t be an option this year. Your friends might be willing to switch the tradition to a pot luck meal. That way, you can still spend time together without breaking the bank. I know thins year I will be thinking about why certain traditions are important to me and trying to get creative with finding ways to achieve the same goal, but at a lower cost. 

Tip #3: Manage impulse extras

This may not be true for everyone, but for me the holiday season encourages impulse spending. Since I am spending more time in stores where I am browsing for gifts, rather than shopping with a list, it makes it more likely that I will throw some extra things in my cart. But these small purchases can quickly throw my holiday budget out of whack. I have a few ideas for how I can limit this extra spending:

• Know when I’m done shopping for each person. If I see something I think my dad would love, but I already have a gift for him, I need to encourage myself to leave it on the shelf. I could always take a picture and save it for his birthday or Father’s Day. 
• Whenever possible, have a list. Instead of wandering from store to store and increasing the chances of buying random things, I am planning to go out when I have a list and an idea of what I really need. 
• Avoid the “Buy Now” button. If I can give myself a day or two to consider purchases, it might help me avoid buying things I don’t really need. When I’m online shopping, adding something to my cart rather than buying it immediately will give me time to truly consider my purchases. 

Especially during the holiday season, there is pressure to spend money. We tend to feel like there are so many things we have to have so that we can make memories with family and friends. But I think there are ways to create memories and enjoy the holiday season without overspending and making life more difficult for ourselves in the New Year. So, this year I am going to give it my best shot and I hope you will too. 

Happy Holidays!