The holidays are a joyous time, but they can also bring financial stress, especially with the pressure of buying gifts. If you want to avoid overspending this holiday season, careful planning and smart shopping strategies can make a big difference.
1. Set a Strict Budget
The budget you create should cover gifts, travel expenses, food, decorations, and any other seasonal costs you may have that you don’t normally incur at any other time of the year. Once you’ve done this, you can create your gift-giving list and divide the amount you have allotted for gifts among each person. Of course, it’s important to prioritize close friends and family. Keep track of this in real-time so you are more likely to stay within these boundaries to control costs. There are plenty of spreadsheet apps you can use to do this while on the go.
2. Get Out of Debt
Go over your current debt. If you are in a significant amount of debt, getting out of it as soon as possible can allow you to use credit cards that are no longer over the limit and apply for new credit cards that can help you with the holiday season. This is especially nice when applying for credit cards with significant rewards, cashback offers, or savings for specific retailers. It can help to meet with debt relief professionals who can also help you with this process.
3. Shop Early
Last-minute shopping often leads to impulsive spending and fewer options, as well. Starting early, you can take advantage of sales leading up to the holidays. Many retailers offer deals beginning in October. Starting this early will also help you spread the costs over time instead of spending a lot at once.
4. Use Cashback Tools
Take advantage of your credit cards that offer cashback rewards. You can even use these to purchase gift cards through your credit card cashback reward program and use those as gifts. There are also plenty of online price tracking tools, such as Honey, that allow you to see the historical price trends of items, which will help you buy specific products at the right time. These tools often have cashback rewards, as well, and will automatically apply promo codes during checkout that you might not have been aware of.
5. Embrace Gift Exchanges
If you are getting together with a large group, consider setting up a Secret Santa gift exchange or White Elephant. This way, everyone is only spending on one gift instead of a bunch of gifts for each person.
6. Take Advantage of Retailer Policies
Many retailers have specific policies that make the gift-giving process easier. For example, many retailers allow price matching, meaning that if you find something in the store sold for cheaper elsewhere, you can price match and get the item for that matched price. You should also be aware of the return policy should you find a different gift for the person that might be a better fit or price.
7. Cut Back Where You Can
Cutting back on certain small indulgences during the holiday season can help more significantly than you might think. Consider making more coffee at home instead of stopping at your local coffee shop, cook more meals at home instead of eating out, and skip impulse buys, especially for yourself, until the holiday season ends.
By following these strategies, you can confidently navigate holiday shopping and stick to your budget without compromising on thoughtful gifting.
