Holidays are usually a wonderful time of the year, but not always–especially when your bank account cries out in pain and anguish when you open the monthly statement. Although presents, abundant meals, and eye-pleasing decorations are part of the yuletide cheer, getting too into the spreading of cheer might hurt your perfectly curated financial plans. If you’re not prepared, controlling your holiday spending could be difficult, especially if you’re not used to doing it. But fear not! You can keep your budget in control with this ultimate holiday budgeting guide.
Set A Budget and Stick to It
Although they may look easy, setting up a budget and going through it isn’t easy, especially during holiday shopping. Controlling your holiday spending should start with this approach despite its notable difficulties. Take time to sit down and plan all your expenses, including outlining how much you could spend.
Instead of creating a strict amount to follow, make a range of costs to your shopping. Doing this can help you comfortably manage all your expenses and allows you a better range when looking into possible presents. In addition, listing the people on your shopping list will help control your holiday spending as you have a definite number of gifts to buy.
Besides setting up a budget for every person on your list, sticking within the range of your spending limits is easier if you buy them using cash. Using your credit card when doing holiday shopping could lead to overspending, as you don’t have clear evidence of how much money you’re losing.
Shopping with cash allows you a more concise understanding of your budget. It helps you set the limits of your holiday shopping and keeps you within your planned expenses.
Avoid Impulsive Buying
During the holiday season, retailers could offer up to 35% discounts on their products, making ideal presents like toys, apparel, and electronics more affordable. Due to this, impulsive buying becomes more prevalent among holiday shoppers.
Most people who tend to overspend from their budget get tempted by these discounted prices, which could heavily impact their overall financial plans once the holidays are through. Always keep your head clear and focus on your list.
Even if the products are affordable, always remind yourself if you or the people on your list immediately need them or if purchasing them could wait for later. The best way to control your holiday spending is not to focus on saving money with holiday deals. The more you pay mind to it, the easier it would be for you to go over your spending limits.
Go With Promotional APRs and Interest-Free Payments
Although shopping with cash is best for controlling your holiday spending budget, there are cases where you need to use your credit cards, especially when making large purchases. When that happens, use promotional APRs or look for interest-free payment plans that could spread out over three to six months, at least.
But to ensure your debt won’t increase over time, always make sure you can pay your purchases within the allotted time. In addition, promotional offers are more affordable than credit card debt, and some provide installment plans with smaller payments with little to no interest.
Another thing you should know before using credit cards for your holiday shopping is to know when to use them. Many credit cards offer valuable rewards when you shop, helping you earn points, miles, or cash back whenever you make a purchase.
Cashback cards are the best type when shopping for the holidays. Whenever you earn cash back on your purchases, you also get an automatic discount on your spending.
Consider Homemade and Handmade Presents
Sometimes, your holiday budget could be tighter than expected, making shopping more difficult. When this happens, be more open-minded in considering alternative gifts that fit your expenses while keeping them meaningful for you and the other person.
Gifts shouldn’t focus on monetary value but on how they could remind your receiver of your relationship and history. Being crafty and creative with your gift-giving by making presents by hand, like knitting or crafting personalized candles or soaps, can be as valuable as store-bought presents, if not more. Always emphasize thoughtfulness and not the price- that way, you can ensure the happiness of the people you present gifts to and not go overboard with your expenses.
Remember That It’s Not Always the Material Things
Celebrating the holidays and spreading the yuletide cheer isn’t only about giving gifts and fancy meals. The upcoming holidays are also about spending time and experiencing new things with the people that matter to you. Besides buying presents, there are other ways to celebrate the occasion without risking your savings.
Attending free local events and going to winter festivals, light displays, and holiday parades can have the same impact as valuable things. These low-cost activities, including baking, holiday craft sessions, and quick road trips outside the city, could offer you and your family more memorable experiences. Besides, buying a worthwhile gift for the entire household, even an affordable winter trip to the next state, is more cost-efficient than buying for each person.
Don’t forget the book that lays out the principles of goal-achievement and attaining a Bold Life!
