Christmas spending can be a little insane. Most people just racked up major consumer debt for the holidays and they’re starting the New Year on the left foot, not the right foot, when it comes to their finances.
This is simple – we spent close to $1600, so if we had the same budget for next year we could create a “Christmas Savings Account” with Ally.com (2% at the moment) and we could throw $135 a month into it.
We have done well budgeting for gifts, but all the little stuff adds up. Now we choose to make extra donations, give 30-40% tips on haircuts/eating out, and things of that nature around the holidays.
I am doing it today. Go to Walmart or wherever, go stock up on gift bags, name tags, and wrapping paper. If you need decorations do that too.
Figure out ways to be creative giving gifts if you’re on a strict budget. I have alluded to this in the past, but a gift I will never forget I am looking at right now a picture of my Grandma with a handwritten note she gave me.
Finally, make Christmas and the holidays about memories. Don’t worry about spending loads of money on gifts – see what fun and creative things you can do next year.