Christmas is around the corner. How’s your holiday shopping going?
I used to go last minute shopping just to check everything off my list, but I eventually learned that this habit takes the fun out of holiday preparations and does serious damage to the budget. Here are a few things I learned when I finally decided to take control of my finances.
Gift-giving SHOULD NOT cut into your emergency savings
Money for gifts should only come out of your disposable income or an allocated Christmas fund that you contribute to year-round. Set a spending limit, create a realistic budget plan, and stick to it.
Cut down your present list
Make a list of people that you want to send presents to, and if you can, limit your gift-giving to only 5 people outside your immediate family. Everyone understands that money is tight, especially these days. What matters most is that you reach out and let your loved ones know you care.
Don’t over-give
Christmas brings out the spirit of generosity in us, but you don’t have to buy presents for everyone you know. Consider creating homemade gifts, sharing your time and skills, or simply sending well-wishes to your loved ones! As the old saying goes, it’s the thought that counts.
Hold off on self-purchases
If you’re planning to buy something for yourself, try waiting until the holiday season is over. You have all year to satisfy your wants! Revisit your plan after the holidays and see if it can still satisfy your needs or not.
My two cents
If gift-giving is part of your family tradition and it’s making you go broke, then it’s time to break it. The key is to plan your expenses way ahead of time so that you don’t have to deprive yourself of anything come the holiday season.
At the end of the day, Christmas isn’t all about the gifts and extravagant celebrations—it’s about being thankful for all the good that’s happened and the blessings we’ve already received. Take this time to do things you enjoy with the people you love the most. Experiences are the most meaningful gifts you can give!
Karin Lim
Karin is a 31 year old financial advocate. She also happens to be Advance's UX/UI designer!
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