By Shane Robson-Smith
Workplace Money Coach
Workplace Money Coach
I was recently asked by a handful of companies to present on financial wellness around a holiday theme and I thought it would be helpful to share the great money tips and ideas that resulted from putting the workshop together.
This opportunity was of particular interest to me because I have to admit that holidays are often my Achilles heel. With all of my due diligence to plan and budget our money, I find that come holiday time, I just need a break and feel I need to loosen up a bit. I am sure you can relate and even as I write, I find this reality reasonable...to an extent.
As I have become super focused on our family's financial goals and smarter about my spending, I have developed an internal Spend-o-meter that sounds an alarm in the form of anxiety when I start to spend outside of our normal habits. This is a battle I often fight when when we travel and find ourselves spending $40 - $100, three times a day for our family of five to eat when we are used to dining out once a month. And it is a battle I fight each year around this time when I try to "cut loose" to enjoy the holiday season only to feel like I have lost control and start to stress as a result.
So this year, I will be using a Holiday Spending Budget along with the great savings tips below to see if I can balance a budget this holiday season without having to turn into Scrooge.
Where does the money for the holidays come from?
I believe the holidays qualify as a "known upcoming expenditure" similar to a wedding or the need for a new car. I know that you are actively trying to build savings or pay down debt but you simply cannot do everything and expect to make any progress so give yourself permission to hit pause on your current financial goal in order to get through the holiday season. Use the money you are depositing into savings with each paycheck and any income from part-time jobs or working overtime to purchase gifts or plan your holiday gathering.
Your focus should be getting through the holidays without racking up any debt. What you have in cash is what you have to spend. If you can accomplish this, you will set yourself up for another great year of crushing your financial goals. If not, the financial hangover that often results from racking up credit card debt or completely depleting our savings account can derail all of your best intentions and efforts to achieve financial freedom.
Here is a depressingly fun fact:
"If you spend $800 this holiday season on a credit card with an 18 percent APR, and you pay the minimum payment, it will take you 45 months (almost 4 years!!!) to pay it off and you'll pay an extra $305 in interest, increasing the cost of your holiday by 38%."
The Holiday Spending Plan
By far, the number one tip I found for surviving the holidays without breaking the bank is to create a VERY detailed spending plan. My wife and I have already put together our plan so I can say from experience how easy it can be to forget all the miscellaneous holiday related expenditures that are missed when we try to budget our money in our head. Click below to download the detailed holiday budget template that I found online and used to plan our holidays.
Use these tips for successful holiday budgeting:
- Make sure your planning includes Thanksgiving and New Years on top of the gift giving holidays
- Budget for EVERYTHING. Be super detailed with your planning.
- Make a detailed gift list that includes how much you will spend on each individual. Don't forget family, friends, coworkers, teachers, mail carriers, etc.
- “Work sales, don’t let them work you” – If it is on the list, buy it, if not…DON’T.
- Keep track of your spending as you go.
Use this step-by-step process to complete your spending plan
- Complete your detailed list of people that you need to purchase gifts for and the amount of money you plan on spending for each individual
- Download and fill out your Holiday Budget sheet in detail making sure to include all holiday expenses
- Add up the total amount that you have budgeted for and multiply by .10 (10%)
- Go back into your budget and find ways to cut out the 10% (this will help to buffer you from overspending if unexpected expenditures arise so you can stay on budget)
Example: Budget $1500 x .10 = $150 – find ways to cut back spending by this amount
10 Money Saving Tips for this Holiday Season
- Shop online – cuts down on impulse spending at the store but also saves on gas, dining out and fueling up on expensive coffee
- Purchase discounted gift cards at Cardpool.com or Raise.com
- Opt for doing a Secret Santa gift exchange with friends, family and coworkers to cut down on the amount of gifts you need to purchase
- Sign up for company email lists from retailers of interest to receive special coupons and discounts
- Start shopping early to avoid expensive, last minute purchases made from guilt
- Use cash when shopping so you know your limits
- Send e-cards in lieu of expensive custom holiday photo cards
- Go potluck for holiday meals
- Hold a clothing and toy swap at work, your church or a community center
- Get crafty – homemade gifts are the best gifts - decorate a picture frame, up-cycle an old piece of furniture, bake fresh cookies or gourmet muffins
Bonus - Gift the gift of your time, labor and expertise by creating custom coupons to give as gifts instead of spending money. Great coupon ideas include: home cooked meals, babysitting, house cleaning or lessons in an area where you are an expert.
Creative Ways to Make Money during the Holidays
- Sell unwanted items
Sell unused toys on craigslist to make room for the new ones. Consign clothing that you don’t wear anymore. Clean out the garage or storage unit and sell desired items such as tools, lawn equipment, outdoor furniture, and grills. - Get Crafty
Create unique gifts to sell at farmer's markets, holiday festivals, to co-workers or online at places like Etsy.com. - Start a Seasonal Business
Seasonal focused businesses ideas include cleaning and decorating for parties, helping seniors or busy families hang Christmas lights, catering, pet or house sitting, or even using your musical talents to entertain at holiday parties. - Find a part-time job
This is a great time of year to find part-time work in seasonal industries like retail, restaurants, catering and cleaning.
I hope you have found some inspiring ideas on how to enjoy this holiday season while maintaining your current financial situation. It will help you leave a sweet taste in your mouth when 2017 arrives and a New Year begins.
About Shane Robson-Smith and Workplace Money Coach
Shane Robson-Smith is a Certified Personal Finance Counselor and founder of Workplace Money Coach. He wants to see you live your life to the fullest and believes that the key to doing so is learning how to use your hard-earned paycheck as the fuel for reaching your financial life goals. Manatee County Government Employees are eligible for a discounted rate for financial coaching - refer to manateeyourchoice.com for more information.
