Embrace the idea of Christmas on a budget without missing the holiday magic!

Winter holidays are just a few weeks away, and everybody is rushing to the supermarkets to get gifts for their loved ones. But what happens when you have quite a big family and you have to spend a lot of money on all the presents? You pray you don’t end up broke.

Even though planning a budget may not seem like the most cheerful topic to discuss, neither is receiving a sizable credit card bill in January after the holidays end. Trust me when I say it’s very easy to lose track of your purchases if you don’t have a plan or a budget. You spend too much money and don’t know where it’s gone before you realize it.

During Christmas, you can spend your money on many things, including parties, gifts, food and drink, and charitable donations. You probably can’t afford to do it all, though, unless you won the lottery this year, and if you do, teach me how to pick the best combination, because I’ve been playing for a while with no success. Therefore, you will have to decide which Christmas expenses are most important.

But enough with long introductions; let’s get to the point. Read the article to find out how to have a Christmas on a budget but still enjoy the holidays as you deserve!

Make a plan

The first step for Christmas on a budget is to make a plan. Take a pen and a piece of paper and start writing all the things you plan on buying for the holidays. Only by doing this will you know how much you can afford to spend.

If by any chance you succeeded in putting aside a deposit for Christmas, then congratulations, you are one step ahead! After that, you can determine how much you are willing to add to this sum and whether there are any areas where you might add to your savings to make your Christmas budget bigger.

Borrowing money to pay for Christmas is your last resort, but if you choose to do so, carefully consider the financial consequences. Cut back on the size of your Christmas parties instead of taking on a huge amount of debt.

Sort your possible expenses into different categories

I recommend that you begin with the most costly aspects of Christmas: cards and gifts. Write down a list of all the people you’d want to buy gifts for this year. This will be one of the most important areas to cut costs if you need to save money this Christmas. Ask yourself if it is really necessary to get gifts for every person.

If, let’s say, you have to participate in Secret Santa at the office, it’s either you decline completely or you discuss with others and set a price limit for the gifts. After all, not everybody can afford to spend an arm and a leg on expensive items. It’s the spirit we have to keep alive, not how costly the gifts are!

Once your plans for Christmas gifts are solid, you can start thinking about Christmas cards. Choose who will receive a card from a selection box, who will receive a cheery “Merry Christmas” the next time you see them, and who you need to buy (or make) a special card for. Additionally, items like gift bags, tags, ribbons, and wrapping paper must be included on the list. Remember the sticky tape, too!

Think about home decorations

During the post-Christmas sales last year, I hope you were able to score some bargains. Don’t forget to factor in the expense of changing the decorations in your budget, though, if you missed the sales. It’s an additional expense that can be modified based on your requirements.

Naturally, if you want a natural Christmas tree, the budget must also include that. Although I am aware that a plastic one isn’t particularly environmentally friendly, I would suggest it because it is certainly less expensive than a natural one. Additionally, you can keep it looking like new for a few years.

…psst! If you’re looking to save money as much as possible this Christmas, why not buy reusable gift bags? These are reasonably priced, made of sturdy fabric, environmentally friendly, and incredibly adorable.

Invest in a pack of six Christmas fabric gift bags that are resistant to heavyweight instead of spending $1 or $2 on a bag that will be thrown away after the gift is unwrapped.

Christmas dinner

The next thing you should add to your list of budgeting is, of course, the food you’re planning to cook for both Christmas and New Year’s Eve. You won’t be hosting a dinner this year, and you’re going to a relative’s instead?

That might be less expensive, especially if each person is asked to bring a bit of something for dinner. Splitting the costs in these hard economic times is pure bliss!

However, if you want your Christmas budget to be accurate, you must include more than that. From the Boxing Day buffet and Christmas Day breakfast to the champagne for the New Year’s toast, don’t forget to include everything.

Additionally, don’t overlook all of the small details you’ll require in between (that applies if you’re still having some guests over). You must budget for those biscuits and nibble-worthy snacks that are keeping everyone around the Christmas tree waiting for stories to hear.

Manage expectations

Even though it’s not really a nice topic to bring up, talking openly about budgeting with the entire family is a smart idea rather than feeling pressured to match previous festive overspending.

Remember that you’re not the only one who wants to budget wisely for the holidays, and it’s not a shame to admit it either! Everyone can have a stress-free Christmas season if costs are set equally and expectations are shared.

Do the Christmas shopping earlier than everyone else

To make sure you will spend this Christmas on a budget, you may want to start doing the shopping in November. This way you will take advantage of all the sales that include Black Friday and end-of-financial-year. And who doesn’t like to get a substantial discount, especially when they have to buy more than just a couple of gifts?

By starting early, you can also avoid making impulsive purchases and guarantee that the items you buy online arrive in plenty of time before the holidays. Remember to search the internet for coupons and apply cashback offers from your favorite retailers when you shop online.

Budgeting for Christmas will never be pleasant. Making these choices now, however, will simplify your Christmas shopping and lower your chance of going over budget. After you make sure your expenses are in order, take a moment to be grateful for what you have, another year close to your loved ones. After all, this is what Christmas is about. Not exchanging luxurious and extravagant gifts. Happy holidays!

While you’re busy thinking about how to spend less on Christmas, why not look at some items you might also want to purchase from Lidl? Trust me when I say you may not find them cheaper somewhere else: Looking for a Reason to Shop at Lidl? These 11 Items are Top Notch.