Are You Financially Ready for the Holidays?

While it is true that holidays are the time of the year where you are supposed to relax and spend some time with loved ones, it is also a period of increased spending. All those presents, Christmas decorations and family dinners can be incredibly expensive. This can be particularly troublesome for those who failed to plan their holiday budget ahead of time. Still, all is not lost and there are several tips that could help you get financially ready for the holidays.

1.      Build your budget

Before you even start saving, make sure that you know exactly how much money you need. In the introduction we mentioned things like decorations, food and gifts, however, this isn’t all there is to your holiday spending. If there are any charities you like to donate to during Christmas you should count them in, as well. Same goes for travel expenses for visiting relatives, Christmas cards and any activities you enjoy doing during the holidays.

2.      Keep it real

Another thing you need to do is try and be realistic about which of the above-mentioned things you really can afford. If you are not in a great financial situation, your family will understand if you downsize your Christmas presents a bit and get something a bit less luxurious than you initially planned. Furthermore, if you can’t afford to make the above-mentioned donation, it’s completely fine to skip a year. After all, you can always make up for it when you are financially able to. Keep in mind that there is no shame in tightening your belt a bit when you have to.

3.      Take a mini-loan

If you are dead set on finding money for the holidays, you might want to consider taking a loan. Of course, indebting yourself in order to throw a lavish Christmas party is never a great idea. On the other hand, some companies offer bad credit loans for people who don’t have the cleanest credit history. Furthermore, these loans can go as low as $500, which makes it into an ideal short-term cash injection to help you avoid holiday austerity. To make things even better, some options can even provide you with the needed cash in as little as 30 minutes.

4.      Turn to DIY

One idea that can provide you with no small amount of help is turning towards DIY. The above-mentioned cards can be home-made, same as the majority of presents. Moreover, there are so many great Christmas recipes online that you don’t really have to order food for a dinner. Sure, this requires a sizeable investment of time but in your situation, time should be an acceptable alternative for money.

5.      Start saving for the next year

Once you have resolved your cash-related issues, you need to make sure this financial problem doesn’t become a recurring thing. Therefore, as soon as this holiday season is done, you should start saving for the next one. Now that you have this year’s holiday budget, you will also have some vague idea of how much you need to save up for the next year, which can make your job significantly easier.


At the end of the day, the question of: “are you ready for the holidays?”, depends on both your budget and your aspirations. Those who don’t have the time or the will necessary for DIY products or those who dread the idea of spending a frugal Christmas will need to find a way to get more cash. Whether this money comes from taking up a loan or creating an additional stream of revenue, you need to keep in mind that this holiday season is just one of many to come. Therefore, finding a way to handle holidays financially is quite a valuable skill.