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Creating a Holiday Budget That Supports Your Mental Health

Christmas is the most wonderful time of the year for some, but it can also be stressful. Data from the American Psychological Association suggests that a staggering 89% of US adults experience stress or feel overwhelmed during the holidays. Financial pressures are one of the leading causes of anxiety over the festive season. A recent survey revealed that 68% of Americans worry about overspending or not having enough money to buy presents at Christmas. Drawing up a budget can help you control spending and manage your money to protect and nourish your well-being and avoid overspending. In this guide, we share practical tips to help you create a holiday budget that reduces your financial stress and supports your mental health.

The Link Between Money and Holiday Stress

The holidays are an expensive time. From socializing and attending gatherings to indulging in festive meals, the costs can add up quickly. Utility bills also tend to rise as we rely more on heating and electricity to stay warm during the winter months. On top of that, many of us enjoy showing appreciation for our loved ones by treating them to thoughtful gifts. The average person spends around $1,000 on presents, festive food, and extras, such as decorations. Spending more money than usual can increase financial pressures, especially at a time when other ordinary costs increase. Common causes of money worries during the holidays include:

  • Pressure to spend money on gifts 
  • Expectations to travel, especially out-of-state
  • A risk of overspending
  • The temptation to spend more than you can afford and give in to marketing emails, TV and store campaigns, and social media ads
  • Unexpected expenses, such as last-minute presents, decorations, home and vehicle repairs, and hosting friends and family members

Creating a clear, detailed holiday budget can help you allocate funds, regulate spending, lower stress and anxiety levels, and enjoy better mental health during the festive season. 

Steps to Create a Holiday Budget That Works for You

When you determine a budget for the holidays, it’s important to ensure your plan aligns with your goals and priorities. Here are some simple steps to help you create a budget that works for you:

Step 1: Assess your financial situation

The first step is to evaluate your finances by checking your account balances, assessing your monthly income and expenses, and seeing how much money you have in savings accounts. If you have assets like stocks, determine if you will cash in on any of them to help with your holiday shopping.

Step 2: Define your holiday priorities

Next, identify your spending priorities. Ask yourself if you want to devote most of your budget to buying gifts for loved ones or if you are more interested in festive experiences, traveling to see friends and family, or planning a holiday vacation.

Step 3: Set a spending limit

Use this information to help you set a reasonable spending limit. Once you have a figure, you can allocate funds according to your priorities. 

Step 4: Track your spending

Track your spending by using budgeting apps, spreadsheets, and online banking. Keep a record of how much you’ve spent and update your budget regularly to make sure it’s accurate. 

Tips for Staying on Budget

There are several ways to manage your money and save during the holidays. Here are some tips to help you stay on budget:

Reduce the cost of buying presents

The average US adult spends over 70% of their holiday budget on buying presents for others. It’s wonderful to treat loved ones, but it shouldn’t come at the cost of your mental health. Using strategies to reduce the cost of buying gifts can help show loved ones that you care without the financial stress. Examples include gifting handmade items like homemade cookies, candles, or artwork, swapping material items for experiences, and buying vintage or second-hand products. 

Manage expectations among loved ones

Many people experience stress during the holidays because they feel pressured to spend a lot of money on gifts. If you want to treat those closest to you but don’t have a huge budget, manage expectations by communicating clearly and letting people know you’re setting a budget. Having a Secret Santa or establishing a universal spending limit can also help manage expectations. This option is excellent for groups of friends, co-workers, and large families. 

Plan ahead to take advantage of special offers and savings

Retailers go all-out to entice shoppers during the holiday season. Planning ahead can help you take advantage of special offers, deals, and savings on the items you want to buy for others. Create a wishlist, subscribe to your favorite websites and brands, and look out for promotions in your inbox and social media feeds. 

Incorporating Mental Health Practices into Financial Planning

Incorporating mental health practices into financial planning can help you manage both your financial situation and your peace of mind. Give these activities a try:

Practice mindfulness when making financial decisions

Being more mindful when making decisions can help you become more financially aware, reduce the risk of overspending, and avoid regret. You can practice mindfulness by thinking about purchases before you make them, tracking spending, outlining financial goals, and learning to spot financial triggers that make you feel overwhelmed or stressed. 

Schedule time for stress-relieving activities

Spending time on fun or relaxing activities can help you tackle holiday stress. Examples include exercising, walking or biking through nature, and participating in your favorite hobbies. 

Avoid making comparisons with others

In the age of social media, it’s increasingly difficult to avoid comparing yourself to others. This attitude can be damaging, especially if you have a limited budget and are prone to stress and anxiety. Focus on your own goals and holiday budget, and remember that enjoying the holidays involves much more than extravagant spending.

How a Holiday Budget Can Support Long-Term Wellness

Creating a holiday budget can be beneficial in the short term but also contribute to long-term wellness. Budgeting and tracking spending can help you avoid overspending and experiencing buyer’s remorse. It also ensures you start the new year on solid financial footing. Getting into the habit of sticking to a budget will benefit you in the future and help you avoid financial stress. 

Mental Health Treatment This Holiday Season

Many of us look forward to the holidays. Still, they may be stressful, especially if you are experiencing money troubles or are anxious about being able to afford everything on your shopping list. Being mindful about your spending, creating a budget that supports your mental health, and managing your well-being during the festivities can help you enjoy a happy, memorable, and stress-free holiday season.

Need Mental Health Support During the Holidays? Contact Jackson House Today

If the stress of the holidays has become too much and you need support this season, don’t hesitate to reach out to our team at Jackson House. Residential mental health treatment may be the thing that helps you start the new year off on the right foot.

About the author

Jackson House

Jackson House

We built Jackson House because we realized there was a critical gap in our healthcare system and many individuals with mental illnesses and substance abuse problems were struggling because of it. While there are many outpatient treatment options and locked, inpatient facilities there was nothing in the middle. Nothing to help people who needed around the clock care but wanted to receive treatment voluntarily, on their own terms. Jackson House is different. We provide clients with the level of care they need in a welcoming environment. When you walk through our doors, we will meet you wherever you’re at and help you on your journey toward feeling better.

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