3 Ways for Retirees To Practice Stress-Free Holiday Budgeting This Season

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Don’t let holiday spending run rampant and add stress to a season that is supposed to be full of friends, family and cozy memories. With a little extra planning and prudent practices, you can bring some extra joy and confidence to the holidays without breaking the bank.

Here are three ways to do it, plus a few additional tips for stretching your holiday budget even further.

3 Rules for Creating Your Best Holiday Budget in Retirement

1. Document Everything 

If this is the first year that you’re creating a budget, start with your best guess about how much you’ll spend and the amount you’ll need to set aside for the holiday season. Then, use this year as a learning opportunity to boost the effectiveness of your budget for next year. Write down where your money is going and note any purchases that increased your worries or any feelings of financial stress. Those are the things you’ll want to plan for or avoid next time around.

2. Resist Relying on Credit

You might not have all your ducks in a row this year, but avoid using credit that could take months to pay off. Instead, try to focus on only spending what you have or keeping a credit balance in line with what you can pay off by the time the next billing cycle starts.

3. Be Honest With Family

If your budget is tight, be sincere with the loved ones with whom you’ll be spending time during the holiday season. Let them know that you’re working on setting up a realistic budget for yourself and that their support will help keep you in check. If they know about your situation, they’re less likely to pressure you into overspending.

Ways To Make the Most of Your Holiday Budget

You may be blowing your holiday budget because you aren’t prepared. Plan ahead for more careful spending with these six tips:

Start Shopping Early

Holiday shopping doesn’t have to happen in December. Sure, there will be fewer festive decorations in the summer and fall, but getting a head start on your shopping will make it easier to spread your spending out and score better deals. If you know you have a long list of gifts to buy, shopping across six months will feel less impactful than buying presents all at once during the last 60 days of the year.

Use Shared Notes and List Apps

A little technology can go a long way. Use a smartphone or computer to create a shared note, or download an app to keep track of wish lists and ideas for all your friends and family. Ask your loved ones to share what’s on their wish list, and use the stockpile of ideas to guide your spending.

Join Email Subscription Lists

Whether you tend to shop for everyone from the comfort of your computer or you like to walk around the mall, there are email subscription lists to join for almost every store or online marketplace. Once you’re on their email list, you’ll receive updates on upcoming sales, which you can use to save on gifts and spend less during the holiday season.

Embrace Handcrafted Goods

Not everyone has the baking skills to impress with cookies and treats, but handmade goods of any kind can make excellent gifts for people whom you might have otherwise offered a more expensive option. Have a dinner party or cozy catch-up with friends coming up? Save some money by skipping the bottle of wine and bringing some DIY tree ornaments or a batch of homemade chocolate truffles to share the holiday spirit without blowing your budget.

Plan a Special Event

Of course, cooking at home can be the most affordable option, but sometimes it’s fun to go out for a special meal or activity. Make the most of a more expensive event by planning it ahead of time and going all-in on making it memorable. Participating in one especially festive holiday outing or meal can lower the pressure to plan multiple smaller events, which can really add up.

Embrace Free Festivities

From viewing twinkling lights on houses in a picturesque neighborhood to serving homemade hot cocoa for your grandkids when they return from an afternoon sledding, cheap and free holiday festivities are a great way to make special memories without increasing your financial stress. Don’t forget to check local houses of worship and city or nature center websites for calendars and information about free seasonal events where you can spend time with loved ones minus the overspending.

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