9 Steps to Avoid Financial Regret after Christmas

9 Steps to Avoid Financial Regret after Christmas

1. Make a List of All the People You Are Going to Buy Gifts For

The first thing I want to encourage you to do is make a list of all the people you plan to buy gifts for this Christmas season. The next part is going to be the most challenging. Go through the list and ask yourself, do you really need to buy gifts for all these people?

There will be some non-negotiables on the list, but there will be others where it is nice to buy them a gift, but not absolutely necessary. This is especially true when people are working adults who can buy whatever they want, anyway. It becomes very challenging to buy gifts for these people. It is far easier to buy gifts for those who have little compared to those who have more than enough.

Once you pare down the list, then you can move to the next step in this process.

2. Determine a Specific Spending Budget for Your Gifts

Once you have determined who you are going to buy gifts for, now it is time to plan out your budget. How much are you planning to spend on each person? Granted, the amount you spend on each person will most likely be different, but at least you have an idea beforehand about how much Christmas gifts are going to cost you.

If you look at the amount now and think it is too much, then you either need to shorten the list or lower the amount you are going to spend on each person. So much of this reverts to the pressure you may feel that you must give a gift to someone. If you have the means and you want to do that, then go ahead. I am concerned about the person who can’t afford to do that and feels they must do it, anyway.

One last thought. If you are buying gifts, especially if you are ordering them, don’t forget to include taxes and shipping, because that is part of the equation and that can chip away at your Christmas budget.

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3. Set Aside the Amount of Cash Required to Purchase Those Gifts

Once you have determined how much you need, then set aside that amount of money in cash and hold it specifically for those gifts. This is another place where if you don’t have the cash or you feel like it is too much, now is when you make those adjustments. If you are going to shop in a store (I know that’s so 20^th century) then take either the cash with you or put the money on a debit card and shop with the card. When the money runs out, you are done. By doing this, you stay on track and you won’t go over your spending budget.

4. Be Careful with Credit Cards and Leave Them Home if You Must

One other suggestion is to avoid using your credit cards altogether. If you are going to use them, then consider the cash you have set aside and when you buy something on the card, then send the cash to pay for what you purchased. It can be very easy to overspend with credit cards because you don’t see or feel the money you are spending in the moment. You feel it later, when the statements come, and that is when the regret can kick in, especially if you have spent more than you wanted to.

5. Don’t Spend What You Don’t Have

Perhaps the simplest step to avoid financial regret after Christmas is don’t spend what you don’t have. That’s why those steps we took earlier are so critical to this process. To avoid spending what you don’t have, you need to know how much you have first. That may feel a little tedious, and it is far easier to just whip out the plastic and charge it. However, the bill will eventually come and if you have not planned well, you won’t be too happy when you see it.

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6. Find Creative or Inexpensive Ways to Give Gifts

Every gift you give does not have to be expensive; some can be not only inexpensive but creative as well. Some gifts may cost you money, but other gifts can cost you time but can be just as satisfying to the ones who receive them.

For example, if you can bake, then it is perfectly okay to make some baked goods and give them as gifts (please make sure you really know how to bake though). Sure, you pay for ingredients, but you will typically spend far less than if you were buying individual gifts. Most people I know appreciate homemade baked goods (except for the extra calories but who’s counting those at Christmas anyway), and they are usually thankful for the time and care you took to make them.

My wife makes a delicious cheesecake, and one year she baked cheesecakes and gave them as gifts. She also makes fish cakes. For those who are from the Caribbean, you know exactly what I am talking about. For those who are not, think of them as fritters that are made with codfish. Rather than making the batter and frying them, she made batter and gave it to people so they could fry them on their own. Everyone who received it was very appreciative.

One year, my mom took all the family recipes from her grandmother, mom, and all her family members and put them in a recipe book. Each family was given a book, and this was a way to pass on family recipes and keep those traditions alive. She even put her famous macaroni and cheese recipe in the book. I can’t say I was happy about that because this is one of the best mac and cheese recipes out there. While everyone claims their mom makes the best mac and cheese, you haven’t tasted my mom’s. I would tell you how she makes it, but you have to be in the family.

In the end, you can be inventive and craft gifts that are not pricey, but hold great worth and will be sincerely treasured by the person receiving it.

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7. Set Up a Gift Exchange

One surefire way to keep everything within the budget and avoid the regret after Christmas is to set up a gift exchange. As I mentioned earlier, it becomes harder to shop for adults than people in need or even children. If you set up a gift exchange, then you eliminate the need to buy as many gifts, and it can be a fun way to share gifts during Christmas.

For the last few years, my family has drawn names, and whoever you got was the person you bought a gift for. We set a budget on how much you can spend on the gift. Each person also gave a list of items they would want that fit within that budget. This allowed everyone to take part in both giving and receiving gifts, and it had the same excitement without the fear of spending too much.

8. Focus on Experiences and Not Necessarily Items

I have discovered as I have gotten older that I value experiences a lot more than I used to. The memories you create when you share a moment with someone you love are truly priceless. While many can’t even remember the gifts they received, even from last Christmas, most people remember the memories of being somewhere with someone you love or care about.

I remember taking my wife to a show, or my children to a wrestling match. These are memories they and I will cherish forever. What you may even realize is sometimes these experiences are not as expensive as you might think.

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9. Remove the Stress

Christmas doesn’t have to be a source of stress or financial burden. The pressure to find the perfect gifts, decorate the perfect tree, and plan the perfect meals can leave you feeling exhausted and anxious, doubting if you have done everything you need to. If you feel like the burden is too heavy to bear, perhaps it's a sign to pause and reassess. The true essence of Christmas lies in the love and joy shared with family and friends, not in material possessions.

The gifts, the food, and the decorations are all extras. While they contribute something pleasant to the season, they are not what gives it its true meaning. When reminiscing about past Christmases, the most cherished memories are not about material possessions. They are about people. These are the memories that will bring you comfort when your loved ones are no longer by your side. So, don’t be influenced by the commercial aspects of Christmas. Set a budget that works for you and stick to it. Let go of the idea that you need to buy more to make the season worthwhile.

Christmas, at its core, is about celebrating the people who mean the most to you, so keep your eyes on that. When you focus on what really matters — family, friends, and faith — you’ll find the joy of the season is already within reach, no stress needed and no financial regrets either.

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