Christmas is fast approaching, and you are starting to get scared. How will you survive this Christmas and holiday season without hurting your finance?  Christmas is a time of celebrations, feasts, good food, drinks, and gifts to others. If you are not careful, it is easy to be over-depleted during this period.

However, you can enjoy the holidays without falling into the debt trap.

Here are five smart tips to avoid unnecessary spending this Christmas.

1. Determine your budget in advance

Setting a budget for your Christmas expenses before you start shopping is always a smart move.

The budget allocated for the Christmas holidays will allow you to minimize excessive expenses and avoid unnecessary spending this Christmas.

Not sure how much to set your budget? Start by looking at your current budget and how much you normally spend each month.

Make a list of your Christmas expenses. Be sure to include all the gifts you want to buy, travel expenses, as well as the cost of food, drink, and entertainment.

Once you’ve compiled your holiday spending list, divide the amount of money you’ve allocated for Christmas between each of the categories on your spending list – such as gifts, entertainment, travel, and more.

If you find a lack of funds in your budget, return to your list and see where you could save.

2. Stick to a shopping list to avoid unnecessary spending this Christmas

We are all guilty of indulging in a little more than we should, simply because it is Christmas. But too many unnecessary purchases can exhaust you financially.

It is important to consciously stick only to buying items on your Christmas “necessities” list.

Avoid impulsive buying and visiting the mall “just to see what they have.” Once you’ve exhausted your shopping list, it’s time to stop shopping and return home.

 3. Save a month in advance

December can be expensive, from buying gifts, decorating homes, and making gala dinners with family and friends.

Many people are often carried away by the spirit of Christmas and forget that they still have to reckon with further expenses at the beginning of the year.

For example, the January return of children to school is one of the biggest expenses of the year for many households.

Many often forget to set aside additional funds to cover the cost of tuition, textbooks, and stationery.

Before you start shopping for Christmas, be sure to note any expenses you may have in the New Year. And set aside some extra money to avoid debts as soon as the New Year begins.

4. Avoid unnecessary ostentation

Don’t let your extravagance frustrate your efforts for a balanced Christmas budget. Give your finances a rest this year by recycling the holiday decorations from the previous year.

At the end of the season, pack your holiday decorations properly and keep them so that you will keep them in good condition for next year.

Another great way to save on decorations is to make your own Christmas decorations.

Making your decorations is not only a cost-effective way to save money, but it is also a great opportunity to engage children and create a Christmas atmosphere.

5. Consider new Christmas traditions to avoid unnecessary spending this Christmas

Although holiday traditions make holidays a special occasion, they can sometimes be costly.

If your holiday tradition involves pampering your loved ones with extravagant gifts or an exotic vacation, then you can significantly outperform your budget.

Tradition creates pleasant memories, but that doesn’t mean they have to be too expensive to be memorable.

Consider creating new Christmas traditions that the whole family can enjoy and won’t put too much money on them.

There are plenty of ways to create a festive atmosphere and enjoy Christmas without breaking the budget.

You can consider the following options:

• Watching Christmas fairy tales at home with family.
• Midnight Mass.
• Launching boats.
• Baking Christmas cookies and other goodies together.
• Playing board games.

In conclusion

It’s easy to get carried away by the Christmas spirit and throw away a lot of money. Avoid marketing massage and consumer fever, and keep your finances in check even this Christmas. It will pay off in the New Year.