The holiday season is upon us, and for many financially-savvy folks, it’s time to spoil the loved ones in our lives. Indeed, making splurging a habit could weigh down just about anyone’s retirement plans. That said, if the spoils go to others, it’s more justifiable. After all, the festive season is all about being generous and creating memories that’ll last a lifetime. And given how short life can be, those holiday splurges may make sense, especially since Christmas and other holidays only happen once a year.

Of course, there is a dilemma that exists for many retirees or those who want to spoil their grandchildren but don’t want their retirement funds to pull the brakes. Indeed, every parent and grandparent wants to give great gifts this time of year. But there are ways to impress and delight without having to break the bank or dig deeply into one’s retirement nest egg. The average American can expect to spend around $1,000 for the holidays, with some more than willing going well over the mark to treat loved ones to lavish vacations and all the sort.

That said, everybody is different, and what a “great” gift is is rather subjective. For some gift recipients, they have a list of what they want, and oftentimes, the goods they want cost a pretty penny.

The holiday splurges can quickly get out of hand!

Indeed, whether we’re talking about video game consoles, virtual-reality headsets, laptops, drones, or any other electronic that can cost hundreds or even thousands of dollars, sometimes gift-givers need to find the right balance. Of course, it can’t hurt to visit a financial advisor for all your questions about how to budget for holiday gifts. However, I would imagine that a vast majority of them would probably advise you to be frugal and save rather than splurge, even at this time of year. 

And with the costs of virtually everything on the ascent, it can be tough to have your cake (give pricey gifts) and eat it, too (still have a padded retirement fund), especially if you’re one of many Americans who are running at tad behind the curve with their retirement savings. In this piece, we’ll look at a few strategies that may be helpful for those looking to find the right balance as they head out for the busiest shopping season of the year.

Formulate a budget and list before you go holiday shopping. Check it twice!

Now, I’m not going to be against a bit of holiday shopping splurges, especially since the reactions of gift recipients can be pretty priceless. However, I’m also not a big fan of going all-out in any holiday season, especially if you haven’t had the best year financially. In any case, I’m a firm believer that you need a holiday-spending budget and stick with it.

Of course, the month of December tends to experience spending surges relative to most other months because of the holidays. That’s why it may make sense to consider spending just a bit less in the months that follow the holidays so that you can splurge without having to set your retirement plans back by all too much.

Indeed, if you’re keen on surprising a loved one with a pricey laptop (which can be viewed as more of a need than a want, especially for a child going off to college), perhaps you can budget accordingly. Indeed, perhaps that means skipping the fancy restaurant dinners for yourself until Spring or pulling back on the monthly expenses that don’t really bring you great happiness (do you have subscriptions you’re not even using?). Either way, there are places to cut as you look to spruce up your December budget ahead of the holiday shopping season.

With the right budget, you can move ahead with the seasonal splurges without having to set yourself up for a shock once that monthly credit card statement comes due in January.

Take advantage of early Boxing Day week deals, but avoid impulse buys.

Boxing Day and Black Friday used to be single-day sales events. Nowadays, these sales tend to span weeks, with Cyber Monday, Black Friday week, and now Boxing Day week, which, depending on where you look, also spans a week. Indeed, some retailers may already have Boxing Day specials many days ahead of Christmas. And if you’ve got some discretion over what you’ll buy, taking advantage of such sales seems smart, so as long as you avoid impulse purchases on items your loved ones may not actually want!

If you plan strategically, you can score some pretty great deals on a wide range of gifts that are sure to delight without breaking the bank. If you can pick up pricey merchandise at well below sticker price, you can save a great deal and get more smiles per dollar spent!

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