After spending nearly $2,000 in gifts for her daughter’s first Christmas in 2017, Meg Nordmann knew her holiday strategy had to change.
“I totally blew it that first Christmas with her,” says the Florida-based author of “Have Yourself a Minimalist Christmas.” “I bought everything this child needed through the first five years of her life.”
Today, she is more intentional with holiday spending — a staple of the minimalist lifestyle she adopted. Minimalism eliminates distractions to free up room, time or money to do what you value. In Nordmann’s case, she avoids unnecessary spending to stay on course toward reaching early retirement with her husband.
You can use minimalist tips to keep your own financial goals on track, and still have a meaningful holiday season.
Review your holiday budget
This year, consumers plan to spend $998 on average on items such as gifts, food, decorations and other holiday-related purchases for themselves and their families, according to a National Retail Federation holiday survey conducted by Prosper Insights & Analytics.
Your budget may differ, but it’s worth considering that $1,000 could cover a month’s rent, an unexpected car repair or vet bill. Even one-fifth of that would make a decent start on an emergency fund, ideal in an uncertain economy roiled by a pandemic.