How to Financially Prepare for a Stress-Free Holiday

Smart Christmas Savings

The holiday season should be a time of cheer, joy, and merriment. In the Philippines, the holidays start as early as the “-Ber” months, so from September onwards, it’s full of Christmas cheer.

Many people make the trip home for family gatherings and Christmas parties with friends. Indeed, the festive season makes people want to go all out to buy gifts, which can incur unforeseen costs, and eventually lead to unwanted debt and some financial stress.

However, there’s still a way to enjoy the holiday season fully without spending extra money. In this article, we help you plan out your holiday budget.

Ways to Budget for a Stress-Free Holiday Season

You don’t have to spend an exorbitant amount of money on gifts or to enjoy the holiday season. It’s true that Christmas and the New Year can be a busy time, but it doesn’t have to be stressful.

Below, we offer the best tips on how to financially prepare for a stress-free, holiday season:

1. Make a holiday spending plan

Take stock of your current financial situation. When you’re planning your holiday finances, you should still prioritize your financial health.

For one, you need to continue to save money, particularly if you’re building up personal or emergency savings. When you spend more than you can afford, this could put you in debt and even more stress.

Set a Holiday Spending Limit

One of the best ways to protect your finances during the holiday season is by setting a strict budget. Determine a specific amount you’re going to be spending.

Factor in your regular costs and decide how much extra money you’re willing to let go of. This helps you avoid overspending and keeps you out of debt.

Start saving early to avoid panic at the last minute

Starting early to build your holiday budget is good practice. Since you know that you’re going to be spending a bit more during Christmas and the holidays, it’s best to prepare ahead. Throughout the year, you can save a bit of cash allotted to holiday spending.

This helps you stabilize your financial situation long-term and with less stress. Having your holiday budgeting as part of your annual financial plan helps you track your expenses more efficiently

2. List All Your Holiday Expenses

You don’t want to be caught off-guard by paying for more unexpected things at the last minute. List down items you need to buy for Christmas shopping.

Make a gift list so you can plan ahead

It’s a given that a person buys gifts for Christmas. In fact, gifts often make up a huge chunk of holiday spending. People tend to purchase thoughtful gifts for their friends and family. You can decide which gifts to get before Christmas. When you create your list, make sure you’re only including items you can afford and fit the budget.

Only Buy What You Can Afford

Don’t forget that you don’t always need to buy things from stores. Gift-giving is more about the intent than the actual cost of the item. If you’re looking to save money on gifts, don’t forget that you can also opt for homemade gifts.

This helps you cut down on your expenses, plus, homemade presents quickly add more sentimental and personal value to your gifts.

Don’t Overlook the Small Things in Addition to Gifts

Holiday budgeting tips tend to gloss over the smaller factors to consider when you buy gifts. These are things like shipping costs, gift wrapping paper, cards, and more. Make sure to budget for these smaller yet equally important items that you’re going to spend on.

Add Travel Expenses to Your Holiday Budget

A lot of people travel back home to spend time with family over the holidays. However, fares and ticket prices can skyrocket during the season, prompting you to spend more than you planned in your finances.

Some great tips include planning your trip ahead, looking out for airline sales, and buying early. The cost of buying tickets ahead of time is significantly lower than when you purchase during the Christmas season.

3. Have a Strategy for Credit Usage if You Must Use a Credit Card

You can use a credit card to pay for Christmas shopping, as long as you track your account and are responsible. Credit usage can be a slippery slope that can create debt and stress.

On the other hand, proper planning with credit usage can also help you manage costs. Plus, it can help you create a stronger relationship with your bank.

One good strategy is spreading out your payments over a longer period, especially if your bank has offers like discounts and 0% interest. Another strategy is to check with your bank whether your credit card account is eligible for cashback.

This way, you can get a portion of your expenses back after the holidays. When you decide to use a credit card for shopping, always be mindful and keep track of your holiday budgeting.

4. Take advantage of sales discounts and special offers

An excellent way to manage your holiday expenses is shopping when there are sales or special offers. Many shops offer lower prices or shopping incentives during the holidays. Look out for discount codes, particularly on online shopping platforms.

When you’re making gift purchases, there could be wholesale or 2-for-1 deals, perfect for people who are shopping for big families or groups of friends.

Spend a Stress Free Holiday Season at Camella

Camella wants you to spend the holidays in comfort and joy. We make our developments more festive with Christmas events and lots of vibrant decorations—all this at no extra cost to you.

As your home and community lights up for the holidays, giving you countless cheer, you can focus on your holiday budgeting and gifts shopping.

More importantly, Camella provides an incredible space and environment for you to spend Christmas with friends and family in expertly designed homes and spacious shared amenities.

At Camella, you’re guaranteed a stress-free Christmas and New Year.