The holiday season is filled with celebration and the spirit of giving, but it can also strain your wallet. Between gift buying, planning bigger-than-normal menus, travel and seasonal decorations, costs can add up.
If you’re not careful, you might find that enthusiastic spending in December leads to a financial hangover in January that can impact not only your financial health, but your physical and mental health, as well.
Overspending then trying to figure out how to pay the bills can be a vicious cycle that leads to stress, anxiety, even physical symptoms like headaches, high blood pressure, sleep loss and digestive issues.
Follow these simple steps to keep your holiday spending in check.
Create a budget. Determine how much you can afford to spend on gifts, food, travel and entertainment, and commit to sticking to that limit. Knowing your spending limits can help you more easily choose gifts in the right price range.
Make lists. Plan your gifts and who you’re buying for, the holidays decorations you want and what your holiday menus will include. Shopping with a list can help you avoid impulse purchases that lead to overspending.
Give time instead of things. Gifting experiences is a great way to reduce costs. As a bonus, spending time together can be more meaningful and impactful than a traditional gift.
Use cash or a debit card to pay for gifts. These practices force you to pay at the time of purchase, which can help you stick to your budget and avoid creating future debt.
But if you do use a credit card, make a payment as soon as possible. With most credit cards, you don’t have to wait until the monthly bill comes in to make a payment. Just open your app or go online to make payments.
Track your spending. Create a spreadsheet or use financial software to monitor every expense throughout the season. This helps you see at a glance if you're staying on budget or if you need to adjust.
Avoid last-minute shopping. Shopping early gives you time to research and compare prices, carefully choose gifts without feeling rushed, and monitor your budget.
Your Employee Assistance Program, called GuidanceResources® EAP, has a wealth of resources to help you keep your holiday budget in check. Its Holiday Resource Guide is a good starting point to ensure financially happy holidays and an economically happy new year.
EAP services are free and completely confidential to employees and retirees and their immediate family members. Call the EAP 24 hours a day, 7 days a week at 1-888-297-9028. Or visit MNPSBenefits.org/eap or guidanceresources.com. Enter username: MNPS; password: EAP (both are case sensitive).