Here we are 20 days until Christmas, have you completed all your shopping? Did you budget? Did you stick to it? Why is it that we always feel so pressure to buy one more thing or spend just a couple more dollars? This type of thinking can really wreak havoc on your financial wellbeing and mental health. Going into debt for Christmas is not ideal. Here are some tips that may help you avoid holiday overspending.

Budget

• Make a realistic budget and stick to it. Don’t get caught up on the fact that you may have spent a few less dollars on this person over that one, or that they have an extra gift. Comparing gifts, or dollar amounts is not going to help your budget! At the end of the day you need to value relationships you have.

Make it or Bake it

• A great way to cut down on holiday expenses is to create your own gifts. Handmade ornaments are a great addition to the tree Check out this HGTV article with 72 DIY ornament ideas. Who doesn’t love a dozen chocolate chip cookies? With the holiday season many people are hosting company or visiting, it is always nice to have a snack on hand. Check out my favourite chocolate chip recipe here

Track Your Spending

• Keep receipts and if you are using credit cards know when they are due. Carrying a balance on the card is a quick way to spend extra money. A purchase of $750 if not paid in full over 3 months could cost you an additional $25 in interest. Mobile apps like Expensify or Mint.com can assist you in organizing all those purchases.

The holidays are a time for family, friends, and good times. Remember that the things you buy will come and go but the connections and relationships will remain. Focus on the person not the gift and be understanding that someone close to you may not be as fortunate and able to give like you do!

Merry Christmas! Happy Holidays!
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