What To Do Now If You Have No Money Saved For The Holidays

The holidays should be time for getting together with friends and family, but for many, spending overshadows this concept.

Is spending bad? Of course not, but it can be troublesome if you have income tied up in bills and other essential expenses.

A lack of savings may make holiday spending more difficult, but it’s not impossible as long as you make the most of what you have. Here are a few ways to do so:

1. Think about the impact of holiday spending.

Yes, it feels great to see others smile as they open your gifts. Don’t let that swift satisfaction overshadow the financial impact those gifts have on you, however.

Overspending during the holidays can lead to stress throughout the year, especially if you rack up credit card debt. Remember this when setting your holiday budget. Doing so should put things into perspective so you can tame that itch to spend money that you don’t have.

2. Set your budget.

After looking at your situation, you may realize that you don’t have much saved. This lack of savings doesn’t mean the holidays will be a dud; it just means you’ll have to cut back.

Set a holiday budget of what you can realistically spend after all bills are paid and keep your priorities first. Don’t let the urge to buy gifts and food lead you into the trap of putting off bills until they’re late and hurt your credit.

As you make your budget, avoid panic if you realize there’s not much you can spend. Once again, think of the year-long financial impact holiday spending has. Once you do, setting a small budget won’t feel so bad.

3. Cut expenses to set aside holiday money.

Now might be the time to sacrifice a bit. To meet your holiday budget, you can cut certain expenses that aren’t necessary.

Eating out could be first on the list. Instead of hitting restaurants or the drive-thru, cook at home to save substantially.

Do you go to the movies a lot or shop as a hobby? Cut those expenses for the next couple of months so you can have some holiday cash.

Check all of your subscription services. Netflix, online subscriptions, and any other monthly expenses that you don’t need can be put on hold for the time being.

4. Make your gift list.

Hitting the mall without a list can lead to overspending, just as if you do it when going grocery shopping. To avoid costly impulse purchases or going over budget, make a list and stick to it.

You may have to get picky when deciding who you’ll buy gifts for, especially if you have a large family or many friends. Don’t let this stress you, and if necessary, let them know your situation this year so there’s no misunderstanding.

To alleviate the stress of gift-giving, you could suggest a get-together instead. Let everyone know it’s your way of enjoying each other’s company while trying to stay within your means.

5. Watch your food expenses.

Food should be included as part of your budget. If not, you’ll likely go over since it’s such a significant part of holiday spending.

While it is nice to indulge in holiday meals, don’t feel the need to overdo it. Cut back a bit this year, and nobody will really notice the difference.

6. Don’t wait for deals.

Black Friday and Cyber Monday do offer some attractive deals, but you can find discounts now without having to wait. By knowing prices now, you can also know later on if you’re really getting a deal or not.