8 Things Retirees Can Do Now To Budget for the Holiday Season

The holiday season can creep up fast, and if you’re living on a fixed income, it’s crucial to plan ahead.

Here are some practical ways retirees can start budgeting for the holidays without breaking the bank.

The average consumer expects to spend $875 on gifts, decorations, food and other holiday essentials, according to the National Retail Federation. If you haven’t already, work out exactly how much you’re willing to spend over the festive season. Break it down into categories so you don’t end up overspending in one area and having to either miss out on something or go over budget.

It’s never too early to start setting aside funds for the holidays. Even if you’re only stashing away a little each week, those dollars add up. Starting now will make spending in November and December feel like less of a drain on your finances.

Think about handmade gifts and DIY ideas like baking cookies, knitting scarves or crafting something meaningful for loved ones. You’ll save on expensive store-bought items, and the thought behind your gifts will be appreciated even more. If you’re short on inspiration, search for tutorials on YouTube, which is an outstanding source of free in-depth videos for all things creative.

Black Friday and Cyber Monday aren’t just for the ultra-bargain hunters. Shopping sales in the run up to the holidays means you won’t be rushed into paying top dollar at the last minute.

If your credit card offers points or cash back, you can use it strategically to reduce your holiday spending. Whether it’s redeeming points for gift cards or using cash back for shopping, it lets you start building up your holiday budget now. Just be sure to pay off your balances each month to avoid interest charges.

Instead of spending big on physical gifts, consider experiences that are low-cost or even free. Perhaps you could arrange a holiday meal in lieu of gifts, host a game night or plan an at-home spa day.

Sometimes all you need to alleviate some of the stress is to have an open conversation with your family about holiday spending. Lots of people will be working with a budget this year, so they might appreciate you being the one to bring it up.

Instead of hosting and paying for a holiday feast yourself, organize a potluck gathering. Asking friends and family to bring a dish to share reduces the financial burden on any one person. Plus, it’s a great way to try a variety of dishes and spend quality time together.