holiday budget

How to Host a Thanksgiving Dinner on a Budget

woman at dinner table -how to host Thankgsgiving dinner on a budget

Thanksgiving is the mother of all Dinner Parties!

The cost of Thanksgiving dinner can be high in a regular year. But with growing inflation and rising prices on everything including gas, energy, and food, you might be worried about the cost of hosting a Thanksgiving dinner this year.

According to Politico, grocery prices are predicted to increase by 11 percent by the end of 2022. While that is true for all food categories, prices of milk, eggs, fruits, poultry, and beef will be affected the most. The real reason for this is high inflation and supply chain issues.

Dinner is the biggest expense of Thanksgiving. People usually spend a lot of money preparing a variety of traditional Thanksgiving dishes including the giant roasted turkey. Luckily, there are many ways to prepare an inexpensive Thanksgiving dinner.

I have several practical tips to help you host a Thanksgiving dinner even on a tight budget.

Make a plan.

If you are traditionally a guest, you have an easy role to play, and probably do not need to set a great deal of money aside to have a Thanksgiving dinner party successful. If you are the host, the holiday celebration is going to be more complicated.

When you host an event, you have to start with a plan. The first thing to do is decide what your holiday budget will be. This first step will determine everything from what kind of food you will be serving to how many people you will invite.

While we want to make Thanksgiving special for our family and loved ones, sometimes it becomes a challenge between hosting a perfect holiday dinner and cutting the costs of it.

Put together a guest list.

How many people will be attending your party? The guest list will determine how big is your turkey, how much food you will have to cook, and where you are going to seat all your guests. Cooking for twenty people costs more than cooking for four.

Hence, the larger your group, the greater the grocery bill.

Create your Thanksgiving menu.

Once you have decided on your guest list, it’s time to plan the menu. When it comes to decide what dishes will be served on Thanksgiving, every family has its own traditions.

My menu looks something like that:

One or two appetizers – stuffed mushrooms or baked brie in puff pastry
Turkey roasted with celery, onions, carrots, and parsnip
Gravy
Potato au gratin or mashed potatoes
Roasted Brussels sprouts or green beans
Honey glazed carrots
Homemade cranberry sauce
Dinner rolls
Coffee and dessert

If you want to cut the costs of your Thanksgiving dinner, do not be shy asking your guests to bring something. You cannot be responsible for everything this year such as food, beverages, desserts, and decorations.

Thanksgiving is all about everyone sharing the meal. Why not make it easy on yourself this year and prepare a list of what you need when guests ask how they can contribute.

15 Thanksgiving Appetizers That Don’t Take Much Effort

Prepare your grocery list.

When you are ready, you can create a grocery list from this menu. Do not presume that you have all the ingredients. Check the cupboards and pantry. Staying organized will help you avoid running to the supermarket the day before Thanksgiving.

Never go to the grocery store without a shopping list. It is important to stick to your list.

Throwing random things into your cart will end up costing you more than your planned budget. Keep a running list on your phone (I use the Notes app on my phone) with the items you need to shop for. This way, you can check items off as you toss them into your shopping cart.

Get your shopping done early to avoid the holiday crowds.

Another way to cut the burden of the grocery bill is to start buying your ingredients several weeks ahead of time. Consider buying a few items each week before Thanksgiving and buying the ingredients when they are on sale.

Prepare Thanksgiving Dinner:

1. Cook dinner from scratch.

We all know that we pay for convenience while ordering a pre-cooked meal. Prepared food whether it be from a restaurant, take-out, or from the grocery store, is generally more expensive than cooking your own meal from scratch.

But with a little extra time and planning, cooking Thanksgiving dinner from scratch can save you a lot of money. I know it is tempting to go with instant mashed potatoes or pre-made pies. But you will pay more for these conveniences.

I make my own mashed potatoes. Making potato au gratin or mashed potatoes from scratch is way cheaper and it tastes more delicious than the one from the box.

Making your own pies is pretty simple as well, even though time-consuming process. I have to admit I do not make my pie crust from scratch because I buy ready-made ones. But I always make my own pies and they taste homemade without all the work.

You may not feel like you are saving money, but the savings will really add up to your final grocery bill.

2. Save money by buying frozen vegetables.

You can save a lot of money by buying frozen vegetables instead of fresh produce.

It is hard for retailers to keep their prices low on produce when they have to ship it out from warmer climates to colder areas. Frozen vegetables contain the same nutrients as fresh produce. In the end, you will not notice any change in quality if your veggies come straight off the frozen shelf.

3. Use canned goods.

I am not a big fan of canned goods. But I have to admit that canned goods can be a frugal cook’s best friend.

Canned goods contain plenty of flavors and are required fewer steps to make them ideal for a party meal. Hence, you can successfully add some canned goods to your Thanksgiving dinner recipes.

When cooking mashed potatoes, use canned chicken broth or warm milk instead of water to make them more flavorful. Also, canned cranberry sauce is a great addition to roasted turkey thanks to its sweetness.

Budget Thanksgiving Menu Ideas

While spending the day cooking and preparing a meal for the party, you need to make sure that you get to enjoy that day too. Think about what you can do to save time. If any foods that can be prepared in advance, then get them ready and save time for other items.

4. Host a Thanksgiving “Potluck” dinner.

Hosting a Thanksgiving potluck dinner can make things a lot easier on you and more affordable.

If you are hosting a large group of people, consider making the turkey and a few simple side dishes. Then ask your guests to bring their favorite dish or dessert. Most people would like to contribute.

Also, if you are really short on funds you can invite people for appetizers and desserts instead of an entire meal. No one is forcing you to host a traditional Thanksgiving dinner. You can always invite people and prepare a big dinner next year when food prices are lower and your finances are in better shape.

5. Split the cost of alcohol.

Alcohol is expensive and can run your bill up quickly.

You can split the cost of alcohol with your guests. Ask your guests to bring their beverage of choice. Also, you can delegate to one or two of your guests to be in charge of bringing a bottle or two of alcohol.

6. Plan for leftovers.

It is always a smart idea to make a little extra food, so you have enough leftovers.

Foods like turkey, mashed potatoes, gravy, stuffing, and roasted veggies can become the main ingredients of another dish. This will give you the option to make lunches or dinners for a day or two after the crazy busy Thanksgiving weekend. There is nothing better than having your meals prepared without relying on your other groceries or cooking.

However, I often find myself tired of eating leftovers after 2-3 days, so I prefer to freeze them. After a few weeks, I can make a quick meal out of my freezer without going grocery shopping.

How to save money on Thanksgiving party décor.

Thanksgiving party table -how to save on Thanksgiving decorations

One of the best parts of planning a party is picking out decorations.

I really love decorating our home for Thanksgiving – it’s so much fun. I usually use what I have. Over the years, I have purchased a few autumn-inspired décor items which pair well with fresh flowers, candles, and seasonal items like pretty small pumpkins and gourds.

You can always dress up your home with inexpensive Thanksgiving decorations from local stores. Hence, buy quality but cheap decorations that can be reused. Store discounts on autumn-themed decorations offer great deals on tableware, candles, centerpieces made of wood and flowers, faux pumpkins, and more.

Also, check your stock from the last year. You would be surprised how much money gets wasted when we buy a similar item.

Select a theme for your Thanksgiving party and then decide on a few pieces that fit your style by using your own resources.

If you are working with a small budget, there is no need to get excessive with the décor. Grab some supplies and create handmade décor pieces. DIY Thanksgiving decorations allow you to add your own special touch to the party.

Your dining room table will be the star of the show at the Thanksgiving party. As a host, you will want to make sure to dress it up to the best!

The perfect way to dress your table for Thanksgiving dinner is to have a table setting complete with seasonal-style décor. Set the scene and use your best china dinner plates, glassware, utensils, cloth napkins, and placemats. Add a few customized items like a table runner, napkin rings, and a centerpiece.

We all know that Thanksgiving is the time for family and friends. Therefore, we do not need to spend a huge amount of money on hosting a Thanksgiving dinner party to have an amazing holiday!

What are some of your favorite ideas for hosting your Thanksgiving dinner on a budget?

Like this post? Share it with others if it helped you!

You can also follow me on Pinterest for more money-saving tips and holiday planning!

How to Host a Perfect Holiday Party – 8 Things to Do

by Maggie 2 Comments

holiday party table-hot to host a perfect holiday party

Holiday season is around the corner. We look forward to the holiday season as a chance to host parties and gatherings with family and friends. The food and décor, the drinks and music – it all makes hosting a holiday party the highlight of the end of every year.

If you are traditionally a guest, you have an easy role to play by bringing flowers, dessert, or a bottle of wine. But if you are the host, the holiday celebration can become hectic and stressful.

Even though planning a whole evening of fun can be overwhelming, my list of 8 things to do before your guests arrive should help you host a perfect holiday party.

1. Create a master to-do list.

I like to start all my holiday parties’ preparations by creating a master to-do list. After years of hosting parties, I have learned that staying organized and planning ahead of time works best for me. Creating a to-do list means being prepared rather than being overwhelmed.

Here is how I start my to-do list:

What is the best day and time to have a party?
Who is on my guest list and how to invite them?
What kind of food to serve? Do I want to ask guests to bring a dish or dessert?
How to decorate the house? What kind of centerpiece for the table?
What is my budget?

2. Figure out how much you can spend on a holiday party.

With the big holidays approaching it is hard to control our spending because we want to make everything perfectly beautiful and festive. November and December are the last two months of the year which are big on festivities. From my past years, I know how easy I would blow through the budget and then feel stressed about how to pay for it in January when the bills come in.

With the food prices on the rise, throwing a holiday party can be expensive. That is why your budget should dictate how much celebrating you can do.

The first thing you need to do is decide if you want to host any of the big traditional holiday meals such as Thanksgiving, Christmas Eve, or Christmas Day. Perhaps, you rather have a quiet party just for friends and coworkers.

The next thing is to decide who will be on your guest list this year. With a never-ending pandemic, I believe this year gatherings will be smaller.

Who are your guests? Make a list and send them an invitation three weeks before the party.

These days digital invitation is the most popular way to invite your guests. I personally do not remember the last time I mailed off an envelope with an invitation card.

I often use Canva because it is an amazingly simple design program to create your own invitation. Also, Canva offers a wide selection of printable invitation templates you can use and personalize to fit your event style.

Canva.com – a free graphic design tool

By doing it online, you will be saving money by not using envelopes, cards, and stamps as much as it was popular in the past.

After deciding on the party theme and guest list, start figuring out what you need for the party (food, beverages, decorations, gifts, and so on). Before buying anything take an inventory of what you already have in your storage boxes, closets, and kitchen pantry.

The main thing to remember is that you don’t need to blow your budget by throwing a stylish holiday party because the best parties are not necessarily the most expensive ones. Stick to your budget and create a plan for a less costly but still festive gathering.

Here are some ideas on how to stick to your budget:

If you want to maximize your holiday spending and get paid for every purchase, the right cash back credit card can be a very useful tool.

14 Best Cash Credit Cards by Bankrate

3. Create your holiday party menu.

When it comes to the holiday party good food is key!

The best advice is to plan your menu in advance, so you will have a clear idea of what you will be serving to avoid the stress of last-minute cooking. If you are hosting a casual gathering with friends, ask your guests to bring a dish or appetizer to share so you will spend less time in the kitchen cooking for your guests.

But if it is a traditional sit-down dinner you will need to do more food planning.

Don’t go overboard with appetizers. I like to keep the list of appetizers simple. Instead of making a bunch of different appetizers, I prefer to make only three of four. My favorite appetizers are nuts and olives, cheese and fruit board, or charcuterie board because it does not take a long time to put all ingredients together. In addition to that, it is easy to make a beautiful presentation on a board so your guests will be impressed by it. Sometimes I add to my list a spinach dip because everybody loves it.

Choose entrees and sides. Nobody wants to get stuck in the kitchen while your guests are sitting down for dinner. The best advice is to choose dishes that can be made ahead of time and then reheated in the oven.

holiday party menu - how to host a perfect holiday party

I recommend preparing all side dishes like stuffing, sauce, casseroles, and veggies on the day before your party. On the day of the party, it can be easily reheated or finished off. The main dish like turkey, ham, or a roast of lamb is easy to cook on the day of the party because it has to sit in the oven for a long time.

To avoid the stress of last-minute cooking, I usually look at the dinner recipes from the previous years and cook one dish that everyone enjoyed eating. That way I will have peace of mind knowing that at least one dish will be a success.

Dessert. We all know that no matter how big a holiday dinner was, there is always room for dessert. I would recommend preparing the hard stuff like pie crusts and pie fillings a couple of days before your party and store them in the freezer. Before your guests arrive, take them out, assemble, and place on the serving dish next to the dessert plates and teacups.

Wine, cocktails, liquor. I am not an expert on wine, beer, or cocktails but we stock our bar with typical vodka, gin, rum, whiskey, tonic, fresh lime, and a bucket of ice for every holiday party.

We usually serve one specialty drink with appetizers. A cape cod cocktail looks very festive and easy to make by mixing vodka with cranberry juice and garnish with a lime wedge.

With the main course we like to serve red and white wine.

But finding the perfect drink for a dessert course can be a little tricky because desserts tend to be full of reach flavors. Its recommended to pair light desserts with wines like Riesling and Moscato or Port and Sherry if you will be serving a dark chocolate cake.

Drinks to Pair with Desserts from Food For Net

Ingredients list. After you figure out the party menu, write down the ingredients you will need to prepare each dish. Keep it handy when going grocery shopping. Without a thoughtful food plan, you might end up buying too much or running out of the important ingredient when there are no shops open. It happened to me several times!

4. Decide on your holiday party color theme.

I believe that everyone wants to host a stylish event. From décor to dessert – there are many tips on how to create an unforgettable experience for your guests.

When it comes to deciding on a color theme, I usually prefer to use seasonal colors. To create a beautiful table setting for Thanksgiving dinner I like to use traditional colors like reds, oranges, and yellows. All my tablecloths and napkins are coordinated with autumn colors.

But there is nothing wrong to mix and match other colors for your table. Put together classic fall décor in reds and pair them with deep greens and blues to get a more modern look. You might want to use cooper and gray which works for any season. Whatever colors you choose, make sure it is coordinated with your dining table centerpiece.

5. Set up the mood.

My favorite part of hosting a party is setting up the table. I pull out our fancy china, silverware, crystal wine glasses, and candleholders. This is the time of the year to use them because it makes the table look elegant.

When I host a big party, I like to add a few special touches like placing the table cards with the guest’s name. You can write your friend’s name on a decorative card. In addition to that, you can attach a pretty ornament to the card so your guests can take it home after the party. Placing cards always make an evening more memorable.

A beautiful centerpiece from a local florist can make the table look super festive. But it will cost a lot of money and might last only for a few weeks. To save money on table décor, I recommend buying a few bunches of flowers from the grocery store and arranging them in bud vases. Do not forget to pick flowers based on your party color palette so this homemade centerpiece will look unique.

Bundles of fresh herbs arranged around candles can make another beautiful detail for setting up the holiday mood. It is a seasonal touch that smells so good.

Music is a must because it puts everyone in a festive mood. This is true, especially during the Christmas party. Make a playlist of your favorite songs ahead of time. But make sure not to play it too loud. Just keep it at a comfortable volume so that your guests can socialize and enjoy the party.

Simple Planning Tips for Stress-Free Holidays

6. When your guests arrive, gave them a warm welcome. It might be obvious, but make sure that you or your husband greet them at the door when the guests walk in. Sometimes you are busy in the kitchen or getting ready but make sure that you welcome your guests.

7. Prepare the coat closet. I always make sure that we clear out the space in our coat closet for guests’ coats, scarves, hats, and handbags. If you don’t have enough room in your coat closet, designate a bedroom or side room to place coats. Just make sure that the area is organized and cleaned.

8. Do not forget the final touches. In my experience, the last 15 or 30 minutes before the guests arrived could be very stressful. I wanted to make sure that I follow my last-minute tasks and do not forget to light the candles, start the music, and adjust the lighting. Also, I make sure that the drinks area is all set up and snacks and appetizers are ready. That way I can offer guests something while they are waiting until everyone else arrives.

This is the best part – enjoy your party! All your planning and preparation has come to a perfect holiday party. Now it is time to eat, drink and have fun. Enjoy your friends and family time as you get together to celebrate this festive time of the year.

What are your best holiday party tips?

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Simple Planning Tips for Stress-Free Holidays

by Maggie Leave a Comment

a family around Christmas table - planning tips for stress-free holidays

The big holidays – Thanksgiving, Christmas, and New Year- come up fast every year. Even though the holiday season is hectic for everyone, I personally love the thrill of it. Most people feel a little frantic during November and December and get overwhelmed with planning for celebrations.

It is so easy to get distracted from the fun part everyone wants to be having. That is why holiday planning tips are the best way to keep your sanity and have a stress-free time with friends and family. The main goal is to create a plan, stick to it, and avoid rushing around at the last minute.

Though this holiday season may still look a bit different than pre-pandemic, there is still plenty to do for a cautious holiday celebration.

This post is all about how to make the holiday season less stressful and more joyful.

Start planning early and create your holiday itinerary

Many of us do not have the time to plan too far ahead of the holidays. But I have noticed that if I start planning early, my holidays are less stressful.

To avoid the pressure of last-minute tasks, I would recommend creating your holiday itinerary for the whole family. Then you should add all your activities to the calendar with the final dates.

Here is a checklist of the holiday itinerary you will want to make sure to add to your calendar:

Holiday parties
Family gatherings
Family activities
Local events and festivals
Family photos
Holiday cards
Travel
Shopping days
Cooking and baking days
Gift wrapping days

Planning a holiday budget

It has been a difficult year with a global pandemic, unemployment, economic crisis, and travel bans. Hence, be realistic about how much is your holiday budget this year. Keep in mind that your holiday spending should not rob your emergency savings account.

The first step is to decide how much money you can comfortably spend this holiday season. Write down that figure on a piece of paper. Is it an educated guess, or did you just pull that figure out of the air?

If you want to create a reasonably calculated budget, I recommend creating a list of the holiday expenses categories and then assigning a spending limit to each category.

Here is a list of my holiday budget categories to get you started:

Holiday cards, postage, and shipping
Holiday gifts and wrapping supplies
Decorations
Food
Entertaining
Family activities
Travel (hotel/Airbnb, air tickets, meals)

Numbers do not lie, and creating a holiday budget helps me to have a feeling of control. I would not dream of purchasing extravagant gifts or spending money on traveling if I do not have enough money saved for the holidays.

Create a master to-do list

When it comes to planning for the holidays, it is important to be realistic with the time you have and the tasks you need to complete. Do not think you can work for hours without a break. There is a limit to what you can fit into your busy days. That is why I recommend creating a list of the most important things you can do to get ready for the holidays.

Here are the three most important to do things on my list:

1. Holiday home preparation

Cleaning and decluttering

The more I can do to remove clutter and clean my home before the holidays, the better off I feel later. Usually, we do deep cleaning – I call it “fall cleaning”- at the end of October. We deep clean our home by washing the windows, cleaning the bathrooms, dusting the light fixtures, decluttering the basement and closets.

I do this because when we have a holiday party, I do not want to feel overwhelmed with cleaning when preparing for a holiday meal or decorating our house.

Decorating

My favorite part of the holidays is decorating our house. Usually, I start early and decorate one room or one area per day. It gives me a reasonable timeframe to decorate the whole house ahead of time with no rush.

Whether we like it or not but many of us have been using the same holiday items for years. Hence, before anything goes up on a tree, on a wall, or a windowsill needs to be inspected and sorted out.

Look through your holiday storage boxes ahead of time and decide what you want to keep or toss. Get rid of everything that is broken, crushed, or sit around in a tangled mess. Do not forget to test everything with electrical parts.

After you took an inventory and evaluated what you have got, you can add to your shopping list a few decorations that need to be purchased.

2. Holiday hosting

If you are a guest at the Thanksgiving or Christmas dinner party, you probably do not need to set aside a great deal of money for hosting. But if you are the host, the holiday celebration needs to be carefully planned. When people plan their holiday expenses, sometimes they forget to include the cost of feeding a large group of people vs. a small party.

holiday table - holiday hosting - planning tips for stress free holidays

Grocery shopping list

There are many ways to organize and manage your grocery shopping list and meal planning. You can have your grocery list on a piece of paper or your phone.

I prefer to do it on my phone because the paper lists get lost easily. But it does not matter if it is on paper or your phone app, just write all your food plans down in one place. With the list ready you will be able to start grocery shopping and food preparation when the time comes.

Menu planning

When it comes to the holiday hosting your food is key! As I mentioned before, try to plan your meals in advance to avoid the stress of last-minute cooking and baking without a clear idea of what you will be serving.

First, you need to know what to buy. And without a thoughtful food plan, you might end up buying too much or running out of the important ingredient when there are no shops open. It happened to me a few times! A simple plan is all you need to start your holiday food shopping.

And when it comes to the holiday menu, it doesn’t have to be complicated.

I have a list of things to consider when planning my menu:

What kind of party am I hosting – formal or casual?
How many appetizers to serve and what kind? I like to have at least one traditional appetizer and then get creative with a few others.
What kind of cocktails to serve with appetizers?
Think about the color and texture of food. Perhaps, I can serve something creamy such as ‘potatoes au gratin’ and something crunchy such as ‘arugula salad’. To make a table festive, I usually look to the season for the colors.
Look at the dinner recipes from the previous years and cook one dish that everyone enjoyed eating. I will have peace of mind knowing that at least one dish will be a success.
What kind of wine to serve with food? Red or white or both?
What should we have for dessert? Should I make a cake or ask if someone wants to bring it?

3. Holiday shopping and gift-giving

Holiday gift ideas

When it comes to buying gifts, the best advice is to make sure that you can afford those gifts. Do not go into debt buying holiday gifts. Only spend what you have in your account.

I love the holiday season, but every year I am overwhelmed with gift-giving. But I really do love buying gifts for my family and friends, and I am trying to stay organized before I start shopping.

The first step in organizing your holiday shopping is to make a list of every person you plan to buy a gift. The next step is to set an overall budget for holiday gifts. Then, you have to figure out how much money you can spend on each gift. It does not have to be a lot, but it is important that you stick to your budget.

With the list of gift recipients and the budget, you can start thinking about gift ideas.

I like to use the Notes app on my phone to create a list of gifts. The best part of capturing the gift ideas on your phone is that most of us always have our phones with us when shopping. When it is time to start your holiday shopping, simply open your list to refer to, and you are good to go.

Holiday shopping

Each holiday shopping season is unique. But the pandemic has thrown us into new territory with a new set of seasonal behavior. I believe this year we will see a hybrid holiday – a blend of a pre-pandemic mindset with a pandemic lifestyle.

homemade cupcakes - holiday gifts ideas - planning tips

Thus, if you want to cut down on shopping, consider alternatives such as homemade gifts or gift exchanges. Make stocking stuffers or small gifts instead of buying them. Most people would take a bar of homemade soap or baked goods over store-bought stuff.

Homemade gifts don’t need to be fancy or sophisticated because they show your loved one that you care through your time and attention. There are many different ways to make holiday gifts, and you do not need to be very crafty. Look at Pinterest for homemade gift ideas.

Homemade Christmas Gifts from Country Living Magazine

Final Thoughts

The key to enjoying stress-free holidays is proper planning. Don’t underestimate a simple plan to help you deal with this crazy time of the year when everything tends to happen at once. And ask your family and friends to help with different tasks.

Holiday planning and preparations should not fall on one person’s shoulders. Do not be afraid to ask for help from family and friends or delegate holiday- related tasks! It should be a collective effort with everyone helping out!

How do you plan for the holidays? Share your ideas in comments below.

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Holiday Spending and How to Control It

by Maggie 4 Comments

Christmas houses-how to control holiday spending

The holiday season is here. There are so many fun things to spend money on like gifts, decorations, parties, travel, etc.

The stores are decorated with Christmas trees and twinkling lights. TV commercials tell us about the “great deals”. Families and friends are making plans for holiday parties and activities.

With all the pre-holiday noise around us, it gets hard to remember how to control our holiday spending.

Follow these simple steps to avoid overspending, stick to your holiday budget, and keep more money in your bank account:

Create a holiday budget and stick to it.

No one wants to hear the word “budget” when it comes to preparing for the holiday season. But if you do not want to drain your bank account, this is exactly what you need to do.

Before you make a list of all the things you want to buy for the holidays, you need to create a realistic budget. A holiday budget will be helpful to know your limits, so you would not be dreading a moment when the piles of credit card bills will come due in January.

Decide how much you can afford to spend on things like:

Gifts
Holiday cards
Decorations
Holiday meals
Entertainment
Activities
Travel
Donations

And do not forget to budget for additional costs of holidays such as gift wraps, wrapping supplies, stamps, packing materials, and shipping. It all adds to the price of your gifts.

Make a shopping list.

holiday gifts - ho to control holiday spending

Do not go to the store without a shopping list because it is so easy to get caught up in the moment and overspend.

Before going to the store, make a list of your family members, friends, and neighbors and assign a gift budget to each name. Also, you can add to your shopping list a few gift ideas for each person.

I like to use a small notebook for my shopping list with names, gift ideas, and the total amount of money I can spend. With all details listed in my notebook, I enjoy my shopping without worries of getting into new debt during the holidays.

It is a smart idea to start shopping early because you will have more time to shop around and very often get the best price. Moreover, you will have time to compare prices at different websites and retail stores. That gives you more options on what to buy and helps to save money.

Last-minute holiday shopping is stressful and often comes with the risk of paying much higher prices.

Limit your gift list.

Do you have a list of all people you give presents to every year? Do you buy gifts for family members, friends, co-workers, neighbors? Be honest and ask yourself if you really need to exchange gifts with all of them?

If you have a big family, it will be hard to limit your gift list. But if you still buying gifts for relatives you ever hardly see, consider dropping them off your list and just send the holiday cards instead of presents.

Consider a DIY alternative and buy fewer gifts.

glass mugs with chocolate-homemade gifts for holidays

Another way to control your holiday spending is to buy fewer gifts. Change your shopping habits to fit your holiday budget.

With fewer store-bought gifts, you can get creative and make one DIY gift for everyone on your list. It can be homemade cookies or holiday sweets in a glass jar, a framed family photo, or a special ornament.

Here is the list of free or affordable holiday gifts for family and friends:

Homemade treats – put a dozen of home baked cookies in a cute tin or mason jar with a ribbon.
Homemade bath gift set – fill a box with bath salts, soap, candles, matches, and chocolate.
Christmas tea box – fill a box or a canvas bag with your loved one’s favorite tea bags and a cute ornament or card.
Holiday plant box – fill a box with the cute succulents.
Hot cocoa party gift – fill the Christmas-themed mugs with hot chocolate and marshmallow bags.
Christmas potpourri – fill a small glass jar with candy canes, greenery, cinnamon (it will smell like Christmas), and decorate with a festive ribbon.
Ready-to-bake cookies gift – prepare a cute sack filled with a dry mixture of ready-to-bake cookies.
Make a colorful printout of the 10-minute meditation or relaxation guide and wrap it with a ribbon or ornament.
Frame a memorable family photo.
Offer to put actual photographs in a photo album and catalog them.

After all, homemade gifts are a great alternative to store-bought gifts. Most people understand the current state of the country and economy and would be grateful for whatever gift you get them.

Other alternatives to holiday spending – Sacred Santa gift exchange, holiday e-cards, holiday potluck party, etc.

Shop online.

laptop - shopping online during the holidays

Shopping online became so convenient in recent years. The number of people shopping online instead of going to retail stores is growing every year.

Most of us prefer to shop online in the comfort of our homes and avoid the stress of fighting traffic on the roads, and then circle the lot looking for a parking space.

Also, the online shopping brings a lot of advantages if you want to control your holiday spending. The biggest advantage is how easy it makes for you to compare prices.

Check out these deal-oriented websites:

Retail Me Not

e Deal Info

Deal Hunting

You can automatically check prices all over the Web by using the browser extension Honey. Also, this browser will help you find and apply coupon codes to save money.

Honey

Moreover, you can earn cash back on your online shopping by signing up for a website like Rakuten.

Rakuten

Pay with cash and leave the credit card at home.

It is so easy to get caught up in the moment during holiday shopping. You are in a store, you put everything you like in a shopping cart, and it is overflowing.

It will be so convenient to pay with your credit card. But do not use your credit card unless you are sure you can afford to pay your bill off at the end of the month.

Once you figure out your holiday budget, take that money out of the bank account and stop shopping when the money is gone. Paying with cash can help to limit your spending.

It is smart to pay with cash and leave your credit card at home. Which means you will pay only for what you can afford. Ask yourself if you really need everything you put in that shopping cart?

Be selective on holiday gift deals.

Do not fall for all those holiday gift deals. Many of these big deals you find during big sales on Black Friday and Cyber Monday are not actually deals at all. I personally do not like to get into this holiday deal bonanza and prefer to start shopping early.

Recently, I have read that ‘Black Friday is a better time to buy newer, big-ticket items. And Cyber Monday is a better day to shop for tech deals and smaller gifts’

Even we see thousands of deals during the holiday season, it does not mean they are all worth shopping for. Be selective. Create a list of things you are hoping to purchase and make sure to do your research on what you will be buying.

To save money, check and compare prices online before setting foot in a store. The goal should be to buy the best product at the best price.

Resist temptation and know when to stop.

It is so easy to go overboard with holiday shopping. While visiting a mall it is hard to resist temptation and do not buy something “extra”. It could be a little present for yourself, new towels for the bathroom, new luggage set for future travels or nice lunch with your daughter.

If you buy too many “extras” you can blow your holiday budget fast without having any idea where your money went. I found it easier to set a budget for my holiday “extras” so I can enjoy spending the money within that limit.

Once you have bought everything on your shopping list, it is time to go home. I know it is not that easy to resist the temptation to stop at other places and see “what they have on sale”.

But no matter how good the discounts are, you should not be buying things that are not on your list.

Enjoy your holidays.

You do not need to spend a lot of money to be happy. The joy of hosting fancy Christmas dinners, giving expensive gifts, and throwing big parties will soon be replaced with the stress that comes later when you have to pay for it all.

Planning, dealing with a budget, and controlling holiday spending can be frustrating for many people. But what makes holidays memorable is not the money you spend but the time you spend with your family and friends.

Time is often harder to give than anything else. Spending time with your loved ones can be as simple as baking holiday cookies, decorating a Christmas tree, lighting candles, or just watching a movie together.

How do you control your holiday spending? Do you make a holiday budget? Do you prefer to shop online instead of driving to the mall?

6 Smart Ways to Make a Holiday Budget & Stick to It

by Maggie 4 Comments

a child in red dress decorates Christmas tree - holiday budget

The holidays are here, and you may have a lot of expenses coming up. There are so many fun things to spend money on during the holiday season.

The holiday season already started with Halloween festivities and shopping for home decorations, costume parties and bags of candies. But the big money spending holidays like Thanksgiving and Christmas are coming close.

According to the statistics, despite the covid-19 economic toll, consumers are still spending above the five -year average on gifts. In 2019 the average American spent around $900 per person on holiday gifts.

And according to a survey, American consumers took on an average $1,325 worth of holiday debt in 2019. That is a lot of debt to take on for holiday spending.

And, this doesn’t include other holiday spending such as food, decorations, and activities. There are also other expenses many people forget to budget for, like stamps, cards, shipping, etc.

If you don’t want to accumulate new debt during the holidays, you need to allocate some money for decorations, gifts, parties, and maybe travels. The best way to do that is to make a holiday budget and then stick to it.

In this post I want to share the smart ways to create a holiday budget, save money on holiday shopping and avoid getting into debt:

1. Set a holiday budget and know your limits

If you don’t want to accumulate new debt during the holidays, you need to make a holiday budget. Before you decide what you should spend money on, you need to figure out how much money you can spend. The smart way to prepare for holiday spending is to look at your basic budget spreadsheet.

First, look at your monthly take-home pay and then subtract your monthly expenses, and calculate what is left. The number on your spreadsheet or calculator is how much you can afford to spend for the holiday season without getting into new debt.

Now you know how much you can comfortably spend on things like clothes, gifts, parties or travels. Don’t forget to add all your other holiday expenses like:

Decorations
Food
Postage and shipping
Charitable donations
End of year tipping

2. Make a list of people

table decorated for Christmas dinner -holiday shopping

After setting up a budget for your holiday spending, the next step is to make a list of your friends, family members, co-workers, neighbors and assign a gift budget to each name. In addition to that, you can put on your list a few gift ideas for each person within your budget. Keep the assigned dollar amount within your budget. But leave a little extra wiggle room if numbers are not working.

You can use an Excel spreadsheet or a small notebook for a detailed list of your holiday spending, including names, gift ideas, the amount of money you can spend and even the ideas where to find the gift. Once you have these estimates and brainstormed the gift ideas it will be easier to see your limits and not deplete your wallet during the holiday season.

3. Do your research and find the best deals

One of the keys to smart holiday shopping is research. Doing research on the best deals is important. We are bombarded with sales promotions, special purchases, buy-one-get-one-free deals and more. You want to know when and where the best deals will be offered.

During the holiday season, retail stores are offering great deals. Before making any purchases, check prices at multiple stores. To save money, search and compare prices online before setting foot in a store. When you come shopping in a retail store, use your research information and take advantage of the deal if you see one.

Many people prefer to shop online these days and that number grows with every year. So, if you want to skip the store and shop online check out a few deal-oriented websites:

Retail Me Not

Deal Hunting

Hot Lowest Price Deals w/ Free Shipping

The benefits of shopping online are not limited to saving on gas and parking fees. Let’s face it: very few of us enjoy holiday shopping. Sometimes it’s very hard to find pleasure in heading out to find gifts for our loved ones and dealing with crowded malls, long lines, and pushy shoppers. I found it easier to shop online in the comfort of my home day or night. And don’t forget to look for free shipping offers, if you plan to order online.

If you travel, many online websites offer great gift selection, and your items can be sent to your travel destination. That means you won’t have to worry about traveling with bulky presents.

4. Start shopping

table with women hands working on computer w/ holiday decorations - holiday budget

You set up a holiday budget, you made a list and have done your research. Now it’s time to start shopping with your list in hand. It’s a good idea to start shopping early so you can get the best prices. If you do last- minute holiday shopping, very often you will risk paying much higher prices.

Make sure that you keep a track of your spending and stay within your budget. Use the same excel spreadsheet or a notebook with names, gifts and price ideas for tracking.

I would recommend adding a column to your spreadsheet and name it “planned spending” and “actual spending.” Total up “planned spending” to see how much you can afford to spend over the holidays. Then keep adding the cost of gifts to your “actual spending” column. This way you will keep track of your spending. You should cut back or limit gift items when you see spending more and getting out of your budget limit.

Another smart way to save money during the holiday season is to search your home for the ribbons, wrapping paper, holiday cards, decorations or even gifts you bought on sale last year.

You may even find the gifts if you bought them after the holidays, stashed away and forgot to retrieve. It happened to me several years ago, when I found a few gifts and left it forgotten in a storage closet. After that, I have bought a big plastic bin where I keep all holiday decorations and last year’s gifts and created a designated space for holiday items, so I don’t lose track of them again.

5. Cash or credit cards

Recently I have read that “cash makes it easier to stick to your budget”. The idea behind that statement was to label envelopes with the name of the gift recipients and other spending categories. Then put the cash in each envelope, matching the amount with your planned budget.

This method sounds like an old fashioned to me, but it will be practical for anyone with careless shopping habits. With only limited cash available and no credit card to use, you cannot get out of hand with your spending. It’s easier to stick to your budget by paying cash.

So, pay cash if you want to avoid overspending. But I must admit that I never shop with cash and prefer to use credit cards. However, Roman and I are responsible credit card users. We always pay off our balance in full to avoid getting charged high interest. Besides, most of our credit cards offer cash-back rewards, so I feel that I still make money while shopping.

If you are planning to use credit cards, it’s recommended to shop with no more than 2 credit cards. You will be better off with low-interest credit cards, not the expensive department store cards. The more cards you use, the harder it is to keep a track of your spending.

6. Alternative gifts

table with eggs, baking dough and cookies - holiday budget

The winter holidays are the most expensive time of the year for many people. On average the shoppers will spend around 730 billion of hard-earned money between November and December.

What to do if you want to enjoy your holiday season without overspending or getting into new credit card debt?

What other options if you don’t have enough savings or extra cash available to cover your holiday expenses?

There some ideas of alternative gifts that will come handy. Instead of buying individual gifts, set up a Yankee Gift Swap or Secret Santa. Gift swaps and exchanges at holiday parties help to trim down the cost of holiday spending for every guest.

Other ideas – potluck dinner with friends and handmade gifts. Homemade or handmade gifts are great for any occasion. I have a friend who gives us beautifully decorated glass jars with homemade cookies for Christmas and New Year. She has a big box of saved holiday decorations and likes to make and decorate her gifts for each occasion.

Or you can give actions instead of physical gifts by babysitting for a stressed mom, cooking dinner with a friend, baking fresh out of the oven cookies with your kids or grandkids or simply buying and decorating a Christmas tree together with your family.

After all most of us cannot remember the gifts we received last year or year before. But we all have sweet memories of family’s favorite holiday traditions.

100 Free Gift Ideas Your Friends Will Actually Want to Receive by Nicole Dieker

Final Thoughts

The holiday season is here. It feels that holiday shopping starts earlier every year. Retail stores have barely put away their Halloween decorations before they fill the shelves with Christmas gifts. Festive holiday ads on TV, brightly decorated streets and shops would make you believe that this season is the best time for shopping. It’s easy to get overboard on holiday spending unless you know your limits.

Now is the best time to put your holiday budget together, make a list of gifts, check the prices and start shopping.

Have you planned out your holiday budget? Share in comments your ways to save money on holiday shopping.