10 easy ways to save money during the holidays
Is your holiday gift list swelling with new friends and family additions this season? If so, how do you spread joy and cheer without doing damage to your personal finances?
The best holiday budget began last year. Smart shoppers write the holiday gift season into each month’s budget, and to the truly diligent comes a stress-free holiday season: they buy presents here and there all year long.
But if you’re like most of us, you haven’t planned ahead and are likely to find yourself living a little tight in January. Here are a few tips to help keep yourself solvent in the New Year:
Step 1: Make a List
Take a tip from Santa–make a list and check it twice. Does everyone belong on this list? Be discerning. Divide your list into A and B, a master list of everyone and a second list for those who get something special. Stick to the list.
Step 2: Set Limits
As you’re making your list, write down a maximum dollar limit for everyone. Then, keep track of how much you actually spend. Now, you know the most you might spend this season. Think of this list as a very short-term financial plan. Stick to it.
Step 3: Buy in Bulk
Write in a soft amount for unexpected presents. There’s always someone who you may want to surprise with something special. Plan to have some extras on hand by investing in some simple gifts anyone would enjoy. Buy in bulk: a case of wine, elegant candles or tins of homemade cookies, which will also do nicely for party hosts.
Step 4: Be Realistic
Ask yourself: is that maximum amount you figured in Step 2 really something you can afford? Do you have the cash on hand for this spending spree, or will you be carrying credit card debt in January? Since debt doesn’t do your credit rating any good, get creative about ways to save.
Step 5: Trim Your Expenses
Revisit the list: should it be smaller? Could you make some of those presents yourself? Are you part of a large family, circle of friends, or group of co-workers who might be willing to participate in a gift exchange? These are all ways to enjoy giving without paying the price in January.
Step 6: Stick to the List
This is the toughest part. Use cash. It makes it harder to spend more than what you have. Take only the exact amount you’ve planned to spend on the gifts you’re shopping for the day you shop. If you must use plastic, reach for your debit card instead of the Visa. This automatically debits your checking account, the same as paying cash.
Step 7: Start Getting Ready for Next Year
After Christmas, consider taking advantage of some of those post-holiday sales for the people who’ll be on you list next year.
And remember, the act of giving can be as simple as a smile. Practice giving all year long.
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