The Gift of Financial Freedom: Preparing for a Debt-Free Holiday Season
As the leaves begin to turn and the scent of pumpkin spice fills the air, we know what’s just around the corner: the holiday season! While it’s a time for joy, connection, and celebration, it can also bring financial stress for many. Here at Life After Debt, we believe the greatest gift you can give yourself and your loved ones this year is the peace of mind that comes with smart financial planning.
Budgets feel limiting this time of year, don’t they? This might surprise you but "budget" isn't a word I like. Especially as it relates to this time of year because I love to be generous.
It's hard to set a limit on generosity but in order to tackle your debt you can't overspend on gifts. I believe there is a spot for gifting allowance within every budget, every income level and every person, regardless of debt. But, in order to have a balanced Holiday season and set your priorities straight, you need to acknowledge your debt. You need to plan. If you don't have a plan, you will inevitably end up impulsively spending money and have no clear direction.
1. Set the Bar
The very first thing you need to do is, regardless of who you want to get gifts for and what you want to gift, it is much more efficient to set that bar with a dollar amount upfront. If you have a % breakdown for your budget already, what section of your budget has to do with disposable spending like this? Maybe this season you have to sacrifice your drive-thru coffee in order to cover your gifting allowance. You have to make it within your personal parameters you've set for yourself but pick a $ amount.
2. Make a List (& check it twice)
Make a list of the people you want to gift to this holiday season. As obvious as it may seem, it will help to visually lay it out to see just how many different directions your money will be going in.
3. Distribute the Money
How many people did you list? Do you want to divide out this dollar amount evenly? Do you want to give more of it to one person?
4. The Gift
Think about what gifts might be good for them this season. This gives you the space to decide on a thoughtful gift instead of scrambling and buying something last minute. You have your bar set so you don't waste time considering something way out of your means.
5. Shopping
You've got your framework so that next time you're at the mall browsing and happen to see something that would work well for Aunt Sue, you have your set $ amount to look at and make the decision for you.
Looking Ahead: Budgeting for 2026
And as you think ahead about framing your budget coming off of this holiday season, I want to leave you with one of the guiding principles that I’ve lived by.
They say 10% of your money should go towards tithe and I believe that when the Bible talks about giving and tithing, God very much sees this as an act of obedience to and honoring of Him. I, too, think that it's also just as much about having a Christ-like heart posture and relationships with others. We all feel great when we receive a special gift from someone on a holiday or even "just because". They've thought about us, put time and money towards making or purchasing something for us that they certainly didn't have to, but that they wanted to. We feel like a priority. And the truth is, giving to others should be a priority in your budget. In that way, it is very hard to put an exact % or $ amount limit on your gifting section of your budget. Know this - the Bible says in 2 Corinthians 9 "And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others." It also says in Malachi 3:10 "Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it."
So it's more of a heart posture and a faith that God will provide all your needs if you are generous with what you have, not about following a hard and fast budget.
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Life After Debt
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