The holidays are meant to bring joy and celebration, but as expenses increase, so can stress. Preparing ahead of time can transform your holiday season from overwhelming to enjoyable. Here are five strategies featuring myVRS Financial Wellness resources to help you ring in the new year with minimal financial regret and maximum merriment. Access to some resources requires you to log in to myVRS.
1. Learn About Your Money Personality
Start by learning more about the behaviors guiding your spending and savings habits. The Your Money Personality quiz is a quick assessment to help you understand your patterns, offering insights and tips for improvement. Understanding the why behind your money choices will help you navigate through gift-giving, dinners out and the new year with ease and lead you to a stronger financial future.
2. Set a Budget
Establishing a budget is an important step toward ensuring you do not spend more than you can afford. Consider last year’s holiday expenses, your current finances and your future goals as you determine your spending limit. Once you know how much you can spend, divide the amount among the categories most important to you. For instance, 50% to gifts, 20% to travel, 10% to decorations, 10% to charity and 10% to miscellaneous expenses. Keeping your holiday budget simple and clear will increase the likelihood you’ll stick to it.
Use the budget tool to calculate how your holiday spending fits into your overall financial picture.
3. Make a List
Gift purchases can quickly push holiday spending beyond your budget. Make a list of everyone you plan to buy for: family, friends, coworkers and teachers, and assign a spending limit to each person. Brainstorm ideas in advance to prevent impulse purchases. Make sure to bring your list with you as a reminder of your spending limits.
Watch Holiday Budgeting — Tips to Enjoy the Season Without Overspending for related advice on keeping your spending under control.
4. Get Creative
Do-it-yourself gifts, like homemade treats or candles, can be meaningful and affordable. If you aren’t particularly crafty, consider gifting your talents or time. An offer to babysit, dog-walk or cook a gourmet meal may be appreciated more than something bought off the shelf. You could also make your own decorations (think pinecone ornaments and paper snowflakes) or swap with friends or family to freshen your decor.
Check out How to Save on Holiday Decorations for more thrifty decor tips.
5. Take a Break
Financial preparation isn’t just about keeping your spending in check. Managing money-related stress is an important part of your overall wellness. During the holidays, it’s easy to feel overwhelmed by the expenses and responsibilities on your plate. When those feelings start to build, take a mindfulness break. Before or even after making a purchase, check in with yourself. Ask: Does this fit into my budget and priorities? Practicing mindfulness reduces the negative impacts of stress and helps you recognize and understand your financial decisions.
Try a guided meditation. Access guided money meditations on topics like Releasing Stress and Unease Over Spending.
By preparing now and using the free tools available through myVRS Financial Wellness, you can enjoy the season with less stress and fewer financial surprises when the new year arrives.
