The holiday season is a time of joy, family gatherings, and celebrations, but it can also bring unexpected financial pressure. Between gifts, food, travel, and the array of festive activities, expenses can add up quickly, leaving many feeling stressed about their budget.
However, with some thoughtful preparation and a few key strategies, you can ease the financial strain of the holiday season. Joe DiSanto of Play Louder shares his tips for managing the extra costs that come up this time of year, even if you haven’t planned ahead.
Think Long-Term: Building an Annual Budget
The best way to handle holiday expenses is to plan ahead, ideally as part of your yearly financial strategy. DiSanto emphasizes the importance of creating an annual budget based on your real expenses. This includes anticipating extra costs that come at the end of the year. By setting aside a little bit of money each month, you can build a fund specifically for holiday spending.
For example, using budgeting software like Quicken or Mint can help you track your spending and spot patterns over time. By doing this, you can ensure that holiday-related expenses are part of your overall financial plan. DiSanto notes, “It’s all about being realistic with your budget. If you know you spend a lot on gifts, build that into your yearly financial plan.”
The great thing about this approach is that it encourages mindful spending throughout the year. If you know the holidays will require extra cash, you can decide to spend less on other discretionary items, like entertainment or dining out, to keep your overall budget balanced.
Short-Term Solutions: What If You Didn’t Plan Ahead?
If you didn’t budget for the holidays at the start of the year, don’t worry—you can still take action now. DiSanto offers several strategies that can help you prepare, even with just a few months left before the holiday season kicks into high gear.
The first step is to tighten your belt a little and look for areas where you can reduce unnecessary expenses. One of the quickest ways to free up money is by canceling any subscriptions or services you don’t use. These recurring payments, whether for streaming services, gym memberships, or even delivery subscriptions, can sneak up on you. “A lot of people sign up for things and forget about them,” DiSanto points out. “Now is a great time to look through your bank statements and see what you’re still paying for but not using.”
There are apps designed to help you manage your subscriptions. Tools like Truebill or Rocket Money can help you find and cancel unused subscriptions with minimal effort. This is an easy way to recover extra funds that you can then allocate toward holiday spending.
Assess Your Storage Situation
Another area that can drain your budget without you realizing it is paying for a storage unit. Many people rent storage space to house items they no longer need or use, and DiSanto suggests this is a common yet unnecessary expense. “If you have stuff in storage that you haven’t looked at in years, it’s time to reassess,” he says. “You’re paying to store things you’re not using, which is a waste of money.”
Take a weekend to visit your storage unit and decide whether those items are worth the cost of keeping them in storage. If they’re not, consider downsizing or eliminating your storage unit altogether. Not only will you save money on the monthly fee, but you may also find that you can sell some of the stored items for extra cash.
Sell Unused Items
Speaking of selling, one of the most effective ways to quickly raise some extra funds for the holidays is to declutter your home and sell items you no longer need. DiSanto is a big fan of using Facebook Marketplace for this purpose. “You’d be surprised how much people are willing to pay for things you thought were junk,” he explains. “I’ve sold everything from old Apple TVs to baby cribs, and even random tech accessories like Thunderbolt cables.”
Facebook Marketplace makes it easy to sell smaller, shippable items by building the shipping costs directly into the sale. “It’s a great way to get rid of stuff and make some extra money, especially with items that can be shipped,” DiSanto adds. This increases your chances of finding a buyer because people are more likely to purchase items they don’t have to pick up in person.
For larger items that can’t be shipped, like furniture or appliances, DiSanto suggests using the local pickup option. You can still arrange payment through the platform, which provides a layer of security, and you don’t even have to interact with the buyer in person. “I sold an old vacuum, and I just left it in my driveway for them to pick up. It’s that simple,” he says.
By selling unused items, not only do you declutter your home, but you can also raise hundreds or even thousands of dollars in a relatively short amount of time. It’s a win-win as you clear space and generate some extra cash for your holiday budget.
The Power of Small Changes
While decluttering and cutting unused subscriptions can have a big impact, don’t forget the smaller day-to-day changes you can make to save money leading up to the holidays. DiSanto encourages people to take a close look at their spending habits, particularly on discretionary items like dining out or impulse purchases. “If you can cut back on dining out just one night a week, that could add up to hundreds of dollars saved by the end of the year.”
He also suggests reevaluating any duplicate services or memberships you might have. “A lot of people have overlapping services they don’t need—maybe you’re subscribed to two different meal delivery services, or you have a gym membership but you’ve been doing home workouts,” DiSanto says. “Cutting back on these extras can save you a surprising amount.”
Small changes can make a big difference over time, and while they may seem insignificant on their own, together they add up. The goal is to gradually reduce your monthly expenses so that when the holidays arrive, you’re not caught off guard by the additional costs.
Creating a Realistic Holiday Budget
Once you’ve implemented some of these strategies and freed up extra cash, the next step is to create a specific holiday budget. DiSanto suggests setting a clear target for how much you want to spend on gifts, travel, and other holiday-related expenses. He recommends aiming for $1,000 to $2,000, depending on your typical spending habits.
Having a defined budget allows you to make intentional decisions about your holiday spending, rather than going overboard and ending up in debt. “It’s easy to get caught up in the spirit of the season and overspend,” DiSanto notes. “But if you set a budget, you can enjoy the holidays without the financial hangover in January.”
If your budget feels tight, remember that experiences often mean more than physical gifts. Instead of spending money on material items, consider gifting experiences or offering your time. Volunteering, cooking a meal for a loved one, or planning a day of activities can be more meaningful than an expensive gift.
Holiday Expenses Beyond Gifts
It’s important to remember that holiday expenses often extend beyond gift-giving. Travel, hosting parties, and even charitable donations can quickly add up. DiSanto recommends factoring these costs into your budget as well. If you’re hosting a gathering, consider making it a potluck to cut down on food expenses, or look for travel deals well in advance to minimize last-minute costs.
Additionally, charitable giving is a wonderful part of the holiday season, but it’s important to give within your means. Many people feel the pressure to donate large sums during the holidays, but you can still make a meaningful impact without overextending yourself financially. Consider donating your time or choosing a smaller, more manageable donation amount that fits within your budget.
The Bottom Line
Preparing for the holiday season doesn’t have to be stressful. By making smart decisions about your finances, cutting unnecessary expenses, and decluttering your space, you can free up money and reduce financial anxiety. DiSanto’s advice is clear: start now, make a plan, and stick to it.
As you implement these strategies, you’ll not only be better prepared for the holidays, but you’ll also set yourself up for financial success in the new year. The key is to be mindful of your spending and make intentional decisions that align with your overall financial goals. Enjoy the holiday season without the stress of overspending, and start the new year on solid financial footing.
