7 Ways To Embrace a Minimalist Budget During the Holidays and Still Enjoy Them
Written by
Jennifer Taylor
Edited by
Jenna Klaverweiden
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The happiest time of the year doesn’t have to be filled with stuff. If you’re already a minimalist but haven’t stuck to it during the holidays or if you are interested in joining the movement, you might be relieved to hear you can have an amazing holiday without excess and without breaking your budget.
In fact, doing so might be easier than you think. Keep reading to learn seven ways to follow a minimalist budget this holiday season, without scarifying an ounce of joy.
Overhaul Your Budget
“One of the easiest ways to streamline your holiday expenses and minimize stress is by revisiting and refreshing your budget,” said Mary Hines Droesch, head of consumer and small business products at Bank of America. “A helpful guide to getting your holiday budget on-track is to use the 50/30/20 budgeting method.”
Following this approach, you’ll allocate 50% of your budget to needs (e.g., housing expenses and utilities), 30% to wants (e.g., holiday shopping) and 20% to savings, according to Droesch.
“This strategy allows you to prioritize both your savings and spending goals for the holidays and plan for expenses on gifts, meals and activities without feeling guilty about overspending,” she said. “You can adjust the percentages to match your current lifestyle and even create a spending cap for each gift, which encourages you to be more intentional and creative in your choices, while keeping your finances in shape.”
Make Handmade Gifts
“Handmade gifts are a personalized, unique and thoughtful way to show you care without spending a lot — something many people are prioritizing this year,” Droesch said.
In fact, she said 43% of consumers plan to spend less this year than last holiday season, according to a new Bank of America survey.
“Whether it’s baking cookies, making a piece of art or putting together a thoughtful photo album, handmade gifts can be meaningful, memorable and easy on your budget,” she said. “They’re perfect for a minimalist lifestyle — less waste, more heart and no clutter — while helping you save money.”
Focus On Experiences
A loved one might not remember the sweater you gave them last Christmas, but meaningful quality time together is a memory that sticks.
“Plan meaningful experiences, like a game night or a holiday potluck, instead of spending on costly outings,” said Lane Martinsen, founder and CEO of Martinsen Wealth Management. “Shared experiences often create lasting memories, without a big price tag and focus on togetherness rather than expense.”
Limit Expensive Gatherings
Sometimes it’s little things that mean the most.
“Opt for cozy, inexpensive gatherings instead of splurging on big parties or going out,” Martinsen said. “A homemade meal or dessert, enjoyed with friends, can be more intimate and memorable than expensive holiday events, saving money while fostering closer connections.”
Create Special Traditions
“Choose low-cost traditions, like baking together, watching classic holiday movies or making DIY decorations,” Martinsen said. “These simple traditions cost little to nothing, yet bring a lot of joy, creating lasting memories without the need for extra spending.”
This is a fun way to bond that everyone can look forward to each year.
Set a Three-Gift Rule
It’s easy to get carried away and give loved ones many gifts during the holidays, but setting limits can pay off in several ways.
“Simplify gift-giving with this rule — one thing they want, one thing they need and one meaningful item,” said Jasmine Ball, a financial advisor and CFP Board ambassador. “It’s a stress-free way to focus on thoughtful giving, while avoiding the overwhelm of endless shopping.”
Create a Holiday Memory Jar
“Celebrate moments, not things,” Ball said. “Have everyone jot down favorite memories or things they’re grateful for and add them to a jar.”
She recommended opening the jar together, as a heartwarming way to connect and reflect with family and friends.
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