How To Spend Money Better This Holiday Season

Tis’ the season for cozy sweaters, long evenings, peppermint everything, and flurries in the forecast. There are many changes that accompany the winter months, and spending money is one of them. 

The United States often sets records for holiday shopping, and last year was no different. In 2019, individual spending averages soared to nearly $1,000 creating a bounty of $1 trillion in total holiday spending. But odds are those figures will shift in 2020.

The economic impacts of the pandemic may alter how you can and should spend your money this holiday season. But just because spending may change, doesn’t suggest it has to mean less. Spending with intention brings more interest, substance, and purpose both throughout the holiday season and beyond. 

Today, we are going to look at some fundamental ways to bring more significance and value to your spending habits this year. 

Build a spending plan

People hate making budgets. They feel restrictive and constraining, causing people to either break them or abandon them altogether. Budgets also come with a mental hurdle. When people surpass even one line item of their budget, they feel discouraged and aren’t likely to stick to the rest of their plan. 

This season, we encourage you to throw out your budget. Yep, you heard that right. Trade your budget for a more practical alternative— a spending plan. A spending plan helps you think deeper about not only what you spend, but why you spend. That reason asks you to think more critically about your spending habits and is crucial to keeping the credit card bills at bay. 

Instead of putting a hard and fast limit on your holiday spending, try to etch a plan for your holiday gifts. Keep in mind that just because you don’t have a budget doesn’t mean you should pack items into your cart without a care in the world like it’s 1999.

Where a budget is restrictive, a spending plan gives you the opportunity to make a deliberate plan with your money.

Our tip? Pull up a spreadsheet or get a piece of paper if you prefer, and make a list of who you wish to give gifts to and what you plan to give them. Casually browsing through aisles or aimlessly clicking through webpages can actually cause you to spend more. But when you make a plan for your holiday shopping, you can figure out the right gifts, carefully look for sales, all while spending a reasonable amount of money. 

Let’s recap on ways to make a spending plan that works:

• Figure out how much money you should realistically (and reasonably) spend
• Don’t spend money for the sake of spending money
• Plan out your gifts ahead of time so you know what you’re looking for
• Wait for sales 
• Get creative with your gifts

Change the way you gift

Buying presents just to buy presents won’t bring you (or the recipient) true happiness this season. Think about gifts or experiences that will make an impact on your family’s life. 

Perhaps your granddaughter is learning photography. You could get her an online class or a subscription to Photoshop, for example. This encourages spending intentionally. It isn’t a piece of clothing she probably won’t like or a lipgloss that will end up buried in the back of a drawer. It’s furthering a hobby and passion, which makes that gift even more special. 

Remember, intentional gifting doesn’t have to be expensive. Did your family experience a recent change like a wedding or a new child? Giving a photo album, framed family picture, a custom family calendar can remind you and your family of the special moments you shared even during these extraordinary moments. 

It’s entirely possible that family members may not be able to gather in the same way this year. The holidays usually mark increased travel and families finally coming together from different parts of the country, even the world. 

The pandemic will likely affect those decisions for many families. For older relatives who can’t travel, perhaps you want to get them a video device so you can stream them into your holiday dinners or get them a gift certificate to their favorite restaurant to cater in a Thanksgiving or other holiday meal. Anything you can do to prioritize time and togetherness will go a long way. People are craving connection, any gift you can give that inspires that connection will be met with more joy.

Last year, we might have encouraged that you gift experiences and quality time. This year, it’s vital to take that concept and apply it in new and innovative ways to keep your family and loved ones safe and healthy. 

We all hope for a positive change and long for the joy of smiling at one another across the table, holding hands, giving big bear hugs, and celebrating without worry, strain, or fear. One day that will be the case. For now, do what you can to make this season about love, gratitude, reflection, and care both for yourself and those you love. 

Adopt an attitude of gratitude

This season, we encourage you to shift your focus from shopping and gifting to centering your attention on gratitude. Ask yourself,

• What are you grateful for this year?
• What unexpected joys have you experienced during these changing times?
• How can you better show gratitude to yourself and your loved ones?

Even in the midst of the pandemic, we encourage you to prioritize gratitude. This mindset will help bring more purpose to your gifting and help you center on what truly matters in your life. Now more than ever, it’s critical to prioritize what matters most.

This holiday season may not look the same, but the love, joy, and care you bring to it can make it just as special. If you’d like to talk more about your holiday spending plan, set up a 15-minute call with us today.