New Year's Budget: How to Avoid Debt
YEREVAN, December 10. /ARKA/. December is one of the most expensive months of the year. Gifts, groceries, decorations, corporate events, trips, children's activities—expenses mount faster than your mood.
It's during this period that many families risk going over their budget and starting the year with financial obligations, stress, and credit card balances.
The ARKA news agency has prepared a step-by-step guide on how to navigate the New Year's marathon without debt, panic, or spontaneous purchases.
1. Determine your overall holiday spending limit
The first step is to understand how much you can realistically spend. Not just what you'd like to spend, but what your income allows. Divide your budget into blocks:
- Gifts
- Holiday table
- Decorations and decor
- Entertainment and travel
- Force majeure
Example of a moderate budget for a family in Armenia:
- Gifts — 40,000–70,000 AMD
- New Year Table — 25,000–40,000 AMD
- Decor — 10,000–15,000 AMD
- Children's activities — 10,000–20,000 AMD
The main thing is to stay within the total amount you set at the beginning.
2. Make a gift list and trim it down.
The closer the New Year, the higher the risk of impulse buying. To avoid overspending:
- Make a list of people who really need a gift.
- Set a budget for each.
- Leave aside 2–3 universal "essential" gifts (candles, sweets, souvenirs). - Use cashback programs (most banks and marketplaces in Armenia activate them in December).
It's important to remember: an expensive gift isn't a good gift. Emotions and attention are valued more than the price on the receipt.
3. A festive table without excesses
Armenian families are accustomed to setting a lavish New Year's table, but this is the expense that most often gets out of control.
How to save money without sacrificing the holiday:
- Prepare 3-4 main courses instead of 7-10.
- Plan your menu in advance (prices rise quickly in December).
- Some appetizers can be prepared the day before, and others can be purchased ready-made from local producers.
- Check supermarket promotions; they appear every week in December.
If you're celebrating with a group, you can split the costs: everyone brings one dish or buys groceries together.
4. Avoid impulse purchases
December is a golden time for marketers. Discounts, promotions, "last chance," "today only"—all of this increases FOMO (the fear of missing out) and encourages spending.
To avoid this:
- Don't buy anything "right away"—leave the item in your cart for 24 hours.
- Check your price history (in many stores, discounts are just fake).
- Don't go through the holidays in a "I deserve it" mindset; this often ends in debt.
5. Buy only what's needed for your home.
Decorations, garlands, and candles are a nice part of the holiday season, but it's easy to overindulge.
Tips:
- Use what you already have at home.
- Buy 1-2 decorative items that really create a ambiance.
- Avoid disposable items; choose versatile decor that will last for years.
6. Don't take out loans or installment plans just for gifts.
This is one of the main rules for financial stability in December. Why you shouldn't go into debt:
- January is a month of low activity and potential unexpected expenses.
- 0% installment plans aren't always free. Read the terms.
- The stress of commitments overshadows the pleasure of a gift.
If your budget is limited, that's okay. It's about paying attention, not showing off your wealth.
7. Buy gradually, not at the last minute.
Prices are highest from December 25th to 31st. If you start shopping now and spread them out over 2-3 weeks, expenses won't pile up in the last few days of the year.
Where to look for great deals?
- Online stores with delivery.
- Promotions in early December.
- Local producers (often cheaper and better quality).
8. Build in a safety net.
Unexpected expenses always arise during the holidays: guests, trips, unexpected purchases.
Set aside 5-10% of your budget as a reserve. This will help you stay on track.
9. Track your expenses daily
A simple principle: record your expenses every day.
You can do this:
- In notes
- In apps (Money Manager, Moneon, ZenMoney)
- In a spreadsheet on your smartphone
Mindfulness is the main tool against overspending.
10. Don't strive for the perfect holiday
Most December debts arise from trying to "do everything," "please everyone," and "make the holiday perfect."
It's important to remember:
- The perfect New Year isn't the most expensive one.
- The atmosphere isn't created by the decor, but by the people.
- The holiday shouldn't be a cause of financial stress.
The key is a festive mood, and sometimes a couple of dishes, good wine, and warm company are enough to achieve this.
Bottom Line
New Year's isn't an excuse to spend more than your budget allows. Smart planning, smart shopping, and a relaxed approach to the holiday will help you enter 2026 debt-free and in a good mood.
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The ARKA news agencywishes you mindful holidays and financial peace in the New Year!-0-
