5 Smart Money Hacks to Help You Budget for the Holidays

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With the economy making everyone <a href="https://successcom.wpenginepowered.com/3-ways-to-spend-your-money-wisely/">extra cautious about spending</a>, I really wanted to give myself the gift of not worrying about money this holiday season. But even with inflation going down, I knew I could be setting myself up for disappointment. How can anyone on a budget relax about money during the holidays?&nbsp;



Of course, we can make attempts like <a href="https://successcom.wpenginepowered.com/powered-by-joy-how-and-why-to-practice-self-care-efficiently/">embracing self-care</a>. But even if I carve out <a href="https://successcom.wpenginepowered.com/how-long-should-you-meditate/">some time to meditate</a>, I know I won’t be focusing on the present but rather the debt I will accrue after buying holiday presents.



So, how can we enjoy the holidays without stressing about the inevitable dent they’ll leave in our savings? Here are a few hacks I’ve used over the years to <a href="https://successcom.wpenginepowered.com/tips-to-keep-your-holiday-spending-in-check/">help me both budget</a> and enjoy the holidays. Consider it my gift to you, my fellow budgeters.&nbsp;



<h2 class="wp-block-heading" id="h-1-be-honest">1. Be honest.</h2>



I honestly love gift-shopping. But the stress of starting the new year already over budget detracts from the fun of finding items friends and family will love. So, before I start shopping, I come up with a realistic figure that I can spend on holiday presents. (Warning: You’ll need to be truly honest with yourself to pull this off.) Upon settling on an amount, I write it down (in ink) on a piece of paper. Somehow, once I have it in actual writing, the stress dissipates, because now I know what I can “really” spend.&nbsp;&nbsp;



It’s true that, as the sole breadwinner for my family, I can sometimes budget only a very small amount for presents, and recognizing that fact can be hard. Still, having a fixed sum in my head that won’t put me over budget leaves me freer to enjoy what shopping I can do. Of course, there are times when I plow right through those meager earmarked funds and have to get inventive. One year, I even wrapped up some of my favorite books from my bookshelf to give. This might seem overly frugal, but each book was chosen with care—and in the end, far more meaningful than some gadget impulse bought on Cyber Monday.



<h2 class="wp-block-heading">2. Remember, it’s December.</h2>



Consider giving donations instead of physical presents. This is the last month in the calendar year you can donate to charities and deduct them from your taxes, so you can afford to be generous. Plus, donations are both great for your soul as well as your budget. They also double as a kind of mini gift to yourself when you file your tax return in April.&nbsp;&nbsp;



There are many other deadlines in December that work well for thrifty gift-givers. Parents only have until Dec. 31 to add to a 529, so if you do have extra money in your budget, you can “gift” a student an extra bump in their college account. And if you’ve been putting money into your company’s flexible spending account, you can fill your holiday stockings with allergy meds and other items from Amazon’s <a href="https://www.amazon.com/FSA-Store/b?ie=UTF8&amp;node=17904040011" target="_blank" rel="noreferrer noopener">FSA-approved store</a>, since most accounts require you to use that cash by New Year’s Eve. For years, I put in for my FSA reimbursement to be paid out in December and used it like a “holiday bonus” to cover my extra expenses. Although you have until Tax Day to contribute to <a href="https://successcom.wpenginepowered.com/what-is-a-roth-ira/">a Roth IRA</a> (if you’re able to), this is the time of year that I usually reach out to my employer’s benefits department about increasing any contributions to company-sponsored retirement plans.  



<h2 class="wp-block-heading">3. Increase your income.</h2>



Start your spring-cleaning early and sell everything you don’t want to keep. Given the <a href="https://www.cnbc.com/select/best-resale-apps-and-websites/" target="_blank" rel="noreferrer noopener">plethora of reselling platforms</a> these days, you can always throw a micro yard sale from your computer. Those with artistic inclinations can also earn extra cash selling wares at holiday fairs or online. You can also consider taking on other end-of-year income-boosting jobs, since many businesses need extra holiday help. You don’t have to be a mall Santa, but you’d be surprised how much financial freedom a little extra holiday work can give you. Personally, I consider all extra cash earned (as well as <a href="https://successcom.wpenginepowered.com/is-credit-card-points-hacking-worth-it/">credit card rewards points</a>) to be “found money” and make a point of spending it on “happy” things like theater and concert tickets, which I wouldn’t otherwise indulge in due to my extremely tight budget. These experiences aren’t just free—they’re also guilt-free. Which in and of itself is a gift.&nbsp;



<h2 class="wp-block-heading">4. Try a dollar diet.</h2>



I dislike the word diet, but it works well for this hack. Like many, I spend much of my holiday season socializing rather than in my default setting: curled up on the couch binge-streaming TV. So, it makes sense to take a pause from my streaming services. Of course, I do love holiday films—what’s December without Jimmy Stewart?—so I keep one. If you’re like most folks and have at least two streaming services, make a decision to pause all but one. You can always restart your subscriptions in the New Year.&nbsp;



Another hack for all those shindigs you’ll be attending: Buy host gifts like wine or candles in bulk—wine shops and other stores often offer discounts for larger orders. So, plan one big shopping trip and save when you go to your many holiday soirees.&nbsp;



<h2 class="wp-block-heading">5. Host the holiday party.</h2>



Initially, throwing a party might not seem like a cost-saving measure. But when you factor in travel costs, it sometimes makes sense to bring the bash to you. Even better, make it a potluck, BYOB event, so everyone saves on food and drink. And instead of giving pricey gifts, do a grab bag of smaller items (instead of the dreaded “secret Santa”). It’s a great way to celebrate with friends and family and one that won’t break the bank. It’s also a good reminder that the holidays are about spending time with people you love—not about spending cash you don’t have.



Photo by DGLimages/Shutterstock

Here are a few hacks I’ve used over the years to help me both budget and enjoy the holidays.

Here are a few hacks I’ve used over the years to help me both budget and enjoy the holidays. | SUCCESS

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5 Smart Money Hacks to Help You Budget for the Holidays | SUCCESS

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Alison Lowenstein is the author of children’s books, guidebooks, and plays. She’s written for The Washington Post, Newsday, The Daily News, Huffington Post, Narratively, Lilith, McSweeney’s Internet Tendency, and many other publications and websites. You can find her at brooklynbaby.com and on Twitter @cityweekendsnyc

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Alison Lowenstein

I never expected to be a single mom, but when my husband died while I was in my 30s, that became my reality, instantly reshaping not only my mental and emotional lives but my financial one as well. No longer part of a double-income family, I was left alone to juggle a <a href="https://successcom.wpenginepowered.com/having-a-career-and-being-a-mom-you-can-do-both/">career and two small children</a>. We had been responsible with money, but I still wasn’t fiscally prepared for this loss. I wanted to ensure that my kids and I could stay in the neighborhood and home where we’d always lived—something that was hard enough when my husband and I were both working. It was almost impossible on my own. So, I had to learn to <a href="https://www.forbes.com/advisor/banking/tips-for-living-your-budget-not-just-planning/" target="_blank" rel="noreferrer noopener">stick to my budget</a>, which wasn’t easy, especially for someone who’d had to repeat a year of high school math.



I spent my first year of widowhood keeping obsessive watch over all our spending in what—in retrospect—was a futile attempt to control a life that felt uncontrollable. While my kids slept, I’d agonize over how much extra we could spend and still make all our bills. I quickly learned that with small children, every moment you are away from them costs money. If I wanted them picked up from school, or to go for a quick after-work run, I had to pay a sitter. For years, my life felt like an endless stream of paying teens in my building for a few minutes of alone time. It added up. But if I didn’t shell out the cash, I felt trapped. I quickly realized that paying for a few extra hours each week to exercise or go grocery shopping alone was worth the sanity it gave me. This was the start of my small splurges.



How did I rationalize spending money that put me slightly over budget? Somewhat strangely, I recalled a brief period in my teens when I joined Weight Watchers. I was 15 years old, and my body had changed and could no longer partake in my previously indulgent little kid diet, so I decided to take control of my eating habits. There, I’d heard about a woman who wouldn’t eat a slice of her anniversary cake because she was on a diet, but later, went into her kitchen and finished what was left of the entire cake, which was apparently quite large. This was something the meeting leader claimed wouldn’t have happened if she’d just allowed herself a little dessert. What I took from this is that, if we don’t deny ourselves small pleasures, we have a better chance of sticking to our main goal.



This advice stuck with me as I entered my second year of single motherhood. I soon began to apply it to other aspects of my life. After all, I reasoned, if I denied myself a run for budgeting purposes, I might wind up doing something like “binge” on an overpriced stationary bike that I’d never use and would clutter my small apartment. 



That’s not to say I didn’t feel guilty about breaking the budget on a “running” sitter when I could have just worked out in my apartment while my kids played. But the greater part of me knew I was making healthy, balanced decisions. And not only did those runs make me more patient and productive, they also led me to run the New York City Marathon—an experience that taught me crucial lessons about endurance and self-reliance.



Even once my kids were older, I found other “small splurge” uses for the cash I’d once spent on babysitting. For instance, I was drawn to a scent a friend was wearing. When I went to buy it myself, I was a little taken aback to learn it cost over $200 for a little more than an ounce. I was someone who used inexpensive body mists, but when I sprayed the perfume on, I surprisingly felt different: happier. Even more confident. Was I so deprived that a simple spritz of perfume changed my sense of self? Maybe. Regardless, it’s still one of my favorite scents, and it’s a splurge I don’t regret.



Another example: A few years ago, I signed up for a meditation workshop. The one thought that kept distracting me from mindfulness—don’t judge—was that I needed high-thread sheets and a bright comforter. Right after the workshop, I purchased Egyptian cotton sheets and a duvet cover. Once I placed them on my bed, I found my room a bit brighter and <a href="https://successcom.wpenginepowered.com/the-new-secrets-of-perfect-sleep/">my sleep much healthier</a>. I know I probably should have had a more esoteric revelation during my meditation. But, like the perfume, this small, earthly investment satiated me. 



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These days, my biggest “little” indulgence is the way I use my <a href="https://successcom.wpenginepowered.com/is-credit-card-points-hacking-worth-it/">credit card reward points</a>. Friends—usually fellow single moms—have asked me why I don’t use these on sensible necessities such as school supplies or winter coats. I tell them the truth: that I love to blow all my accumulated points on luxury hotel rooms with my kids. Even if we spend the bulk of a vacation at a modest rental or motel, I believe this brief stint in five-star luxury nourishes my family. Of course, I never let them order breakfast there, because one breakfast for three could cost as much as a one-night stay at the budget accommodations we’ll move over to for the rest of our trip. But, for a brief period, we get to feel like VIPs. Well, OK, maybe more like Cinderella at the ball who must be out by midnight. But we get to live out our little fantasy until noon checkout.



And fantasy, I’ve learned, is important, especially when your default setting is <a href="https://successcom.wpenginepowered.com/5-ways-to-better-handle-financial-stress/">a fiscally stressful reality</a> and “hobbies” that include devouring articles on finance, budgeting, inflation and retirement. I have a Roth IRA and bonds; I <a href="https://www.bankrate.com/mortgages/how-does-refinancing-a-mortgage-work/" target="_blank" rel="noreferrer noopener">refinanced my mortgage</a> when the rates were low; I try to never carry credit debt; and I still drive a car I bought in 2006. I’ve tried to sock away the recommended six months’ worth of emergency savings, so far without success. I do have retirement accounts and 529s, though both have tanked, while <a href="https://successcom.wpenginepowered.com/eat-better-on-a-budget/">my grocery bill</a> (like everyone else’s) has crept up. I suppose there are a lot of lessons to be learned from these financial ebbs and flows. Maybe the most important one, though, is that money comes and goes from all of our lives, and we need to take pleasure where we can.



It’s a mindset I’ve worked hard to nurture, even while dealing with college tuition as inflation continues climbing. I still don’t indulge in these “mini luxuries” very often. But when I do, I no longer get upset that I went off budget. I’ve learned that small indulgences are as important as savings—that living is as important as surviving.&nbsp;



This article originally appeared in the<a href="https://store.success.com/by-media/success-magazine-nov-dec-2022-sophia-bush-and-nia-batts.html" target="_blank" rel="noreferrer noopener"> November/December 2022</a> issue of SUCCESS magazine. Photos by&nbsp;Boyloso/Shutterstock

If we don’t deny ourselves small pleasures, we have a better chance of sticking to our main goal.

If we don’t deny ourselves small pleasures, we have a better chance of sticking to our main goal. | SUCCESS

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Alison Lowenstein

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5 Smart Money Hacks to Help You Budget for the Holidays

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