Determine a spending limit on gifts
Agreeing on a total spending limit for gifts for family and friends is a good way to get your budget under control. If you have relatives who always give you something incredibly expensive, let them know in advance that you appreciate this generosity, but this year you’d like to set a limit on gifts for each other, for example, no more than five thousand. This will save you from worrying that your gift will again turn out to be much more modest. Plus, you’ll all save some money.
In addition to talking to your loved ones, take time to analyse your finances and plan your holiday shopping accordingly. Make a list of everyone you want to buy gifts for, and determine for each person an amount you feel comfortable spending. This will help you stay within reason and keep you from unpleasant surprises when you decide to check your account balance in January.
Cut down on the number of parties
It can be tricky, especially if you’re a sociable person and love all those New Year’s Eve parties. But no matter how fun they are, parties can put a huge hole in your personal budget. Especially if you buy a new outfit or even just a bottle of champagne for each one.
Instead, determine the number of events you’ll attend during the holidays and fill the rest of the days with free or inexpensive entertainment. For example, throw a cocktail party at home rather than a fancy (and obviously expensive) club, or spend a cosy weekend with friends watching Christmas movies or decorating a gingerbread house.
Offer a gift exchange
One of the quickest ways to empty your bank account before the New Year ─ is to buy gifts for everyone you know and love. This may seem like the right thing to do, after all, the holidays are made for giving gifts, but if you want to save money, it’s important to stick to a budget.
If you have a lot of friends and colleagues and usually try to make everyone happy, this time, suggest that they play Secret Santa or any other game where each participant only has to buy one gift. This way you can even approach the choice more thoughtfully and creatively, because you won’t have to come up with a lot of ideas and spend money on a large number of people at once.
