[Originally published December 2, 2018, updated November 5, 2020]

T’is the season again… the coffee shops are sporting their holiday cups, the stores have crossed over their seasonal sections to Christmas, and the early starters are digging out their holiday decor. This season will be unlike any other, as we practice safety restrictions and aren’t able to shop and gather the way we may be used to. Hopefully, you’ll still #shoplocal and #shoplocalonline, but your finances may be in a different place or your budgeting willpower has gone out the window. Regardless of how you shop, come January, one of the biggest challenges many of us face is coming to terms with overspending, so how can we start early to make sure that we’re not spending the first half of 2021 digging ourselves out of the hole we’ve fallen in, on top of everything else we may be dealing with?

Here are a few quick tips to be thinking about this early in the holiday season:

1. Make a list, check it twice!  Using a list to keep track of who you have to buy for, what you’re buying and what you’ve bought can not only prevent anyone being forgotten, but also prevent over-buying if you start your holiday shopping early.  (be sure to include where you’ve put any hidden gifts so you don’t overbuy as well!)

2. Avoid overspending.  Clearly put a maximum gift price for everyone on your list. This can allow you to stay within your overall budget for the season, and if you can create maximum gift cost agreements with family, friends and coworkers all the better! This will also help to clearly state for everyone who may be experiencing different financial situations this year what the gift expectation (HINT: keep it low or go handmade).

3. Cash is king.  Avoid using credit as much as possible, and you’ll be entering 2021 worry-free. Saving all year long for the holidays can allow you to stick to a budget, and end up costing you less without interest charges on credit cards. While this may not have been possible in 2020, still try to use cash as much as possible this season (even WITH online shopping, you can use a VISA Debit online).

4. Shop with a mission, and shop alone.  If you MUST go out to shop, staying focused on your list and your budget is far easier when you’re shopping alone. Not only will it likely take you less time and less travel to different stores to get all you need, you’ll be free from distractions and impulse purchasing when you can focus. If you’ll be doing most of your shopping online, start with local stores offering free delivery or curbside pickup (support your local economy first) and if you can’t find it then look at other online shopping options. When online shopping, try to refrain from impulse shopping. It’s easier to hit the “Add to Cart” button, but leave it there, comparison shop, and come back to it. FUN FACT: a lot of major online shopping outlets will send you a discount code if you leave something in your cart, in an attempt to close the sale. Waiting could save you money!

5. Avoid self-gifting.  It’s difficult not to buy something for yourself when you’re shopping. You may find the perfect sweater, fall in love with a new line of bath products, or come across a deal “not to be missed”. Stick to your plan though. If it’s something you love, snap a photo and send it to your family or friends who may be struggling with ideas of gifts to buy for you. Not only will you get something you love, you’ll save your own money!  And if Christmas day comes and goes, you haven’t received it from someone and are STILL thinking about it, you may find it on the sale rack in January. Win-win!  (This is a personal challenge of mine!)

6.  Get creative!  Whether you’re strapped for cash at the holidays, or can’t find the perfect gift for the hard-to-buy-for person on your list, creating something personalized is better than anything you could buy from a store. Work with your children to make something for their grandparent who has everything. Put your culinary talents to work and bake specialized sweets for that friend with food allergies or intolerance. Or put together a coupon book with the gift of time and services. You’d be surprised how many moms would prefer not having to do dishes for a month over that cashmere sweater.

7. Shop & Ship. This is a year where we can’t gather and exchange gifts like we’re used to doing. The entertaining and stress savings will be HUGE I’m sure, but simply divert those savings to sending your gifts. This can be either by post to those out of town, or do some porch drop-offs closer to Christmas. IF you need to ship, be sure to shop early and ship early, to ensure your loved ones get the gift in time for Christmas. More and more people will be buying online, with an increased strain on delivery services, so don’t procrastinate.

8. Entertaining differently. This year’s entertaining will no doubt be more low-key for many. This means money saving usually, but you may be missing your friends and family. Think outside the box instead! For example, if you’ve previously used holiday shopping as a way to connect with friends during the holidays, consider planning a zoom shopping excursion to a virtual handmade market instead. BONUS you can relax at home, not worry about weather, and enjoy a cup of cocoa, coffee, tea, or wine safely.

9. Give Locally. If your financial position, thankfully, has remained the status quo this year but your Christmas expenses are going to be lower, consider giving to a local organization to help those not as lucky. This has been a tough year for many, so if you’re able to give, please do. This can be in the form of cash, Adopting a Family, contributing to a new toy drive, or giving to a food bank. It’s a way to get the whole family involved, and feel good about helping others in a challenging year.

Want to make positive changes for 2021 in your financial journey? Contact me to chat more!