• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • ABOUT

The Fortunate Investor

Investing, Business, Saving, Debt, Money, Retirement, Taxes and Family Finances

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » How Much Money Should You Spend on the Holidays?

How Much Money Should You Spend on the Holidays?

November 28, 2018 By Lance Cothern | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

Christmas is just a few short weeks away. Stores have already begun marketing Christmas decorations and gifts to anyone that will listen. Kids are getting their Christmas lists ready. You are starting to look at sending out Christmas cards online, and invites are starting to roll in for holiday parties

Christmas is just a few short weeks away. Stores have already begun marketing Christmas decorations and gifts to anyone that will listen. Kids are getting their Christmas lists ready. Invites are starting to roll in for holiday parties.

These next few weeks will bust many personal budgets. Spending goes through the roof for many families as they try to meet the expectations and obligations society has imposed upon us for the holidays. Some people will go into debt to meet these obligations. Here’s why even considering going into debt for the holidays is a major mistake and what you should do instead.

Most People Don’t Remember Presents

presents bag

One of the biggest costs for many families are Christmas presents for their kids, friends, extended family and even holiday party attendees. The thing that blows me away is we spend so much on gifts and people, for the most part, don’t remember. If you can tell me every single gift you received during the holiday season last year, I’d honestly be shocked. Personally, I can’t remember more than a handful of the many gifts I received and chances are many of the gifts you give will be forgotten, too.

Instead of giving so many gifts that get forgotten, you should focus on giving fewer gifts that are more meaningful. Many of the more meaningful gifts I’ve received over the years weren’t expensive either. In fact, some were handmade or were just a thoughtful idea.

Some Presents End up Unused

Even if you can’t remember the presents you received, you might think you’re using them. Unfortunately, many Christmas gifts end up in closets or get taken to Goodwill when you’re decluttering your home. I don’t know a single person that needs more clutter in their life. Instead of contributing to the clutter, you can give an experience instead. Most people would be happy just sitting down and catching up with an old friend over lunch rather than receiving a modestly priced but useless obligatory holiday gift. Here are some ideas for babies and toddlers for the winter.

Holiday Parties Shouldn’t Be Excuses to Spend

Holiday parties are usually a double whammy for your wallet or purse. In addition to having to bring a gift, many people feel the need to go out and buy a special outfit for the party. After all, no one wears the same clothes to a holiday party two years in a row.

Unless you’re attending a very high end function that could result in a positive outcome in another area of your life, such as a promotion, no one is probably paying attention to what you wear other than the fact that you fit in with what everyone else is wearing. However, if you wear something extremely memorable, that may be an exception. If you stick with the basic holiday party attire, you can likely wear the same outfit year after year and very few people would notice, if anyone noticed at all.

Prioritize Your Spending

Going into debt for presents, decorations or outfits for the holidays makes no sense when you realize how little these things matter in the big scheme of life. They seem important at the moment, but paying 15% interest for putting gifts on a credit card is insane. Instead, prioritize your spending based on the money you have available to you.

Personally, I would put thoughtful gifts to my kids at the very top of my list. If money is running tight, you could even start a new gifting tradition. My favorite tradition I’ve found so far is the four gift Christmas. Each Christmas you get your child only four gifts. Each gift must fit in one of the four following categories:

  • Something they can read
  • A present they need
  • Something they can wear
  • A present they want

Inexpensive Options for the Usual Traditions

christmas giftsAfter you prioritize gifts to your kids, there are plenty of thoughtful ways to limit the cost of gifts to others. In settings where you would have to buy multiple gifts, such as the office, you can suggest doing a white elephant gift exchange or a secret Santa program, both with gift cost limits.

You can even decorate your home for the holidays relatively inexpensively. Pinterest is a great source for do it yourself decoration ideas. Many ideas are inexpensive or free if you have some materials around your home. Alternatively, you may be able to swap decorations with friends or family members. Just because you’re tired of a decoration doesn’t mean someone else won’t love it.

It just doesn’t make sense to go into debt and pay crazy high interest rates for things no one will remember a year from now. Use the money you have available for the most important holiday traditions and skip the rest this year. Next year, save in advance so you’ll have enough money for your perfect holiday season.

Primary Sidebar

Popular Articles

Save Some Money: Say No To Your Kids - A Child Psychotherapist’s Perspective For Your Children

Save Some Money: Say No To Your Kids – A Child Psychotherapist’s Perspective

Having children will be one of your life's biggest and best events. When you hold your newborn in … Read More about Save Some Money: Say No To Your Kids – A Child Psychotherapist’s Perspective

vantage vs fico score

What is the Difference Between a FICO Score and Vantage Credit Score?

If you don't know what a credit score is, it's time to learn. Your credit score is an essential … Read More about What is the Difference Between a FICO Score and Vantage Credit Score?

Making Sure You Don't Slip Up On The High Stakes In The Oil Industry

Making Sure You Don’t Slip Up On The High Stakes In The Oil Industry

Let’s be frank; money talks in any new enterprise. Whether you’re investing oil or starting a … Read More about Making Sure You Don’t Slip Up On The High Stakes In The Oil Industry

Legal Documents Difference Between Certified and Registered Mail

Legal Documents: Difference Between Certified and Registered Mail

Did you know there is a difference between Certified and Registered mail? The difference is … Read More about Legal Documents: Difference Between Certified and Registered Mail

Are you up to your ears in high-rate credit card debt? Don't worry; there is a way out! Here are 7 smart tips for getting out of credit card debt fast. Does the thought of checking out your credit score make you want to scream? Credit cards are a great way to lessen that anxiety. Like all good things though, as quick as it can help, it can also destroy if you don't pay on them. Once you pile on the credit card debt, it can be a challenge to get out. Don't let this discourage you. There are a few ways to save yourself from drowning in numbers. Here are a few tips on getting rid of credit card debt and claiming your life back. 1. Stop Using Your Card If you know for a fact that you have terrible spending habits, hide your card from yourself before you sink too far into the pit. You can cut it up, lock it in a safe and lose the code, package it in duct tape and bury it in the backyard, use a wood chipper, the options are endless as long as it is out of your hands. If you're using it to pay your bills then, try and set up a payment plan with your utility company. Or downgrade your house or car. Fitting your bills into your budget will make you less likely to use your credit card and give you a little breathing room for managing credit card debt. 2. Make a List of All Your Debt Studying your enemy is one of the key factors of defeating it. Tis means you should make a list of all the credit card debt you've currently got under your belt. Making a list will help you figure out which one you should prioritize and pay off first. How do you determine this? Check out the standing of all the existing credit card debt you have and their interest rates. 3. Come up with a Strategy Credit cards can do massive damage to your credit score so you want to pay the one with the highest interest off first. After you've paid off that one, go on to the next one. Eventually, you will pay them all off as you go down the line. Make sure you continue making minimum payments on them after so you don't find yourself drowning again. 4. Try to Get a Lower Interest Rate Not all credit card companies will be agreeable about giving you a lower interest rate, but it never hurts to try for the sake of getting lower payments. Sharpen up your negotiation skills by using any kind of leverage you can to get them to work with you. Bringing up how long you've been with them or your good standing up to this point might get them to budge a bit in your favor. If they are completely unagreeable, then transferring your debt to a new, lower-rate card might be an option, or you can take out a personal loan. Personal loans can be a little harder to get, but you'll find that if you can get one to pay off your debt, the interest rate is usually way lower than your credit card one. Eventually, the loan will replace your credit card debt with an installment loan. Believe it or not, this will actually look better on your credit. To find out more on personal loans you can visit this website. 5. Find a Payment Plan If getting a lower interest rate still doesn't work out for you, then it's time to figure out some other options. The easiest thing you can do is either ask for a deferment or a new payment plan. Credit card companies like money, so they will most likely work with you on this so they don't have a non-paying account in their system. 6. Limit that Spending If you limit your spending, you'll have more money to put toward your credit cards each month. Just think: skipping out on that morning coffee could allow you to pay your debt faster and lower your interest rate. If you want to make a little game out of it you can join spending challenges. This could mean going on a 14-day to a year-long spending ban depending on what's best for you. This is recommended if you just don't trust yourself to stay on budget. If you have self-control, then it's just a matter of keeping up with it and throwing these savings into your loan debt. 7. Put Any Extra Income Towards Credit Card Debt Budgeting can only take you so far so on top of putting any extra savings toward your debt. You can take on little odd jobs for extra money. There most likely a ton of options available for you in your area. You've just got to call around or surf the web to seek them out. Consider turning any kind of hobby into a money-making business. For example, if you know you're a great artist, then you can open yourself up to commissions. You might be surprised at how many people may pay. A Guide to Getting Rid of Credit Card Debt Just because you feel like you've dug your own grave, doesn't mean you have to stay that way. There are ways of getting rid of credit card debt. Come up with a foolproof plan to tackle it, try to find a lower interest rate, ask for a new payment plan, or just take on a few extra odd jobs. Put your credit cards back in your control. If you're new to the credit card world, you could make a lot of mistakes that will put you into debt without even realizing it. Visit our blog for a beginner's guide to credit cards

7 Smart Tips for Getting Out of Credit Card Debt

Are you up to your ears in high-rate credit card debt? Don't worry; there is a way out! Here are 7 … Read More about 7 Smart Tips for Getting Out of Credit Card Debt

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
YOUTUBE

Copyright © 2023 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service