Even though we like to think of the holidays as a time of fun and family, the truth is that there is also a great deal of stress attached to this time of the year. From entertaining to buying gifts to travel, the stresses on your budget can cause anxiety and worry during a time that is ostensibly about happiness and family togetherness. This time, before you succumb to financial stress, considering these points may just help you enjoy the holidays more.
Why are You Feeling Financial Stress?
While some may be feeling financial stresses due to economic realities, such as job loss or some sort of unforeseen financial catastrophe, there are many of us who experience self-imposed stress during the holidays. Some of the reasons that you might be feeling avoidable financial stress can include social expectations, commitments, competition, materialism and lack of planning.
You might feel that your friends and family expect you to entertain them. In order to do this “in style”, you might overrun your budget. Even worse, you might feel as though you are in a competition with someone else to provide a “better” holiday experience. Even if you are only in competition with yourself, in an attempt to exceed last year’s holiday experience, your drive can lead you into unnecessary spending.
Another problem is that we often place too much emphasis on material things as a means of happiness. We want these things for ourselves, but sometimes we also get carried away with making Christmas “better” for our children by going overboard with gift-giving. And, of course, without planning out a gift budget, an entertaining budget and other expenses, you will find that you have not saved up enough to pay for everything without debt, adding to the stress you feel with regard to your finances.
Tips for Reducing Financial Stress
The first thing you need to do is identify why you are feeling stressed out during the holiday season. If it is due to social expectations or materialism or something similar, you need to take a step back and realize that it’s okay to live within your means. You don’t need to try and impress anyone. (Editor Chimes In: In fact, a clutter-free life, a simple life that is, will prove to always be better.). Simple holiday entertaining, as long as it’s thoughtfully prepared, can be just as good, if not better than an expensive party.
Same with gifts. If you can’t afford expensive presents, opt for small, thoughtful gifts. Your loved ones will understand. It is possible to enjoy life without spending a great deal. Here are some other things to consider when reducing financial stress during the holidays:
- Be realistic about your holiday budget, and stay within it.
- Don’t add to your debt. This can be a huge source of financial stress. Even if you don’t pay it down during the holiday season, at least try to avoid digging a deeper hole. Put the credit card away.
- Take a few minutes for yourself. Sometimes, what you need is to take care of yourself. Do some physical activity, or take time for proper relaxation. A break can help keep you focused and help you avoid lashing out at those around you.
- Get organized. Make a list of all of the gifts you expect to buy, and keep track of sales and coupons so that you can take advantage of deals as they arise. This also applies to decor, party supplies and holiday food.
- Make a plan. Start planning for next year. Note how much you spend this year, and begin setting money aside in February or March for a holiday fund so that you are less stressed next year. Knowing that you are learning from this experience can ease your mind in some cases.
If you are experiencing financial stress due to economic factors, remember that there is help available. Be honest with your friends and family, and gratefully accept help that they offer. Check with local community charities or your church congregation to see if there are programs that can help you through the holidays. You may need to donate some of your time in order to benefit, but that is a small price to pay for a little financial peace of mind.
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- My Personal Quest to De-Commercialize the Holidays
- Cash Windfalls and Debt
- Giving Gifts for the Holidays on a Budget
- Best of Personal Finance with MoneyNing Nov 2009
- Holiday Savings with Citi Cards
The best way to avoid financial stress on your holiday, you must plan your financial budget, before your rest.