Stop overspending over the holidays and start the New Year off financially strong
Plan before you shop in order to save you money this holiday season
The expensive bills that come with the holiday season can take away the Christmas joy.
It's easy for shoppers to get wrapped up in overspending when shopping for loved ones.
While your intentions may be good, it's important to respect your own finances while shopping for loved ones in order to avoid spending the first months of a new year climbing out of debt.
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On average, consumer spending this holiday season is expected to be $902 per person, according to the National Retail Federation's consumer survey conducted by Prosper Insights & Analytics. This amount includes gifts, food, decorations and other seasonal items bought during the holidays.
Keep these financial tips in mind ahead of the holidays.
The cost of Christmas can be stressful. There are so many different costs associated with holiday spending, one of which is the gifts you buy for loved ones. (iStock / iStock)
- Create a budget
- Make a shopping list (and check it twice)
- Leverage free shipping
- Take advantage of credit card rewards
- Start early and smart
- Consider DIY gifts
- Take advantage of discounts and cash-back offers
- Avoid impulse buying
- Consider Secret Santa or gift exchanges
1. Create a budget
Crafting a practical budget serves as the foundation for wise holiday spending.
Start by evaluating your finances thoroughly, determining sensible spending limits for gifts, decorations, food and entertainment.
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Ensure your budget covers all necessary aspects while aligning with your income, ongoing expenses and any extra costs linked to the holiday season.
Strive for realism to strike a balance between a comprehensive approach and a budget that mirrors your financial capabilities.
Before you start shopping, create a budget for yourself so you know how much you can afford to spend. (iStock / iStock)
2. Make a shopping list (and check it twice)
Preparing a thorough list of everyone you intend to gift during the holidays and setting specific budgets for each person is a savvy strategy.
This detailed approach not only helps you stay organized, but also ensures a clear grasp of who you are shopping for and the designated spending limit for each individual.
By having this breakdown in place, it minimizes the impulse to make unplanned purchases, ultimately keeping overspending in check throughout the festive season.
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3. Leverage free shipping
Shipping costs can quickly add up.
Before you start buying gifts, look through your list and see if there are any people you're shopping for where you can order items from the same site.
By doing this, you may unlock free shipping for your items.
If shopping online, try to buy for multiple people from the same place. That way, you'll have enough to qualify you for free shipping on the items you buy. (iStock / iStock)
If you are an Amazon Prime member, you have access to free shipping on the majority of items sold on the site. This can be a huge money saver during the holidays.
4. Take advantage of credit card rewards
If you don't already have a credit card with rewards, the holiday season is a great time to get one.
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There are so many different rewards credit cards you can get, many of which come with no annual fees.
Generally, with rewards credit cards, you get money back for the purchases you make.
This could come in the form of cash back, or you can get gift cards for certain stores or restaurants.
Take advantage of credit card rewards when buying gifts. You can use the points you have accumulated for your holiday purchases. (iStock / iStock)
Either way, shopping with a rewards credit card can give you points you can use for future purchases.
If you are already using a credit card with rewards, consider using your built-up points towards your holiday spending.
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5. Start early and smart
Planning ahead opens doors for strategic shopping.
Capitalize on sales, discounts and promotions available throughout the year.
While Black Friday and Cyber Monday stand out for their deals, keep an eye out for sales spanning the entire holiday season.
If you have the time, try to get all your Christmas shopping done early. This will save a lot of stress as the holidays near. (Gina Ferazzi / Los Angeles Times via Getty Images / Getty Images)
Engage in thorough comparison shopping to snag the best prices, and consider creative alternatives like crafting handmade or DIY gifts to save on expenses.
6. Consider DIY gifts
Sometimes, the most meaningful gifts do not come with a hefty price tag.
Ponder over thoughtful gestures or shared experiences instead of solely focusing on material presents.
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Handmade gifts, shared experiences or heartfelt letters hold immense sentimental value and carry the warmth of the season without adding strain to your budget.
7. Take advantage of discounts and cash-back offers
Harness the power of various apps that offer cashback, discounts and coupons tailored for holiday shopping.
Dive into these apps and scout for those delightful promotional codes or coupons before making any purchases.
It is like unlocking secret treasures for your holiday budget.
Seek out any discounts that you can to save yourself money this holiday season. (iStock / iStock)
8. Avoid impulse buying
Maintaining discipline during shopping is key.
Stick to your list diligently, resisting the allure of items not included. Those spontaneous buys tend to fuel overspending.
Keep a close eye on your spending against your set budget.
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If you notice any drift, take a moment to reassess and tweak your plans.
Remember, it is OK to adapt and readjust to ensure you are in sync with your financial boundaries.
It can be a huge challenge to stick to your budget over the holidays. Shopping early, and having a list with you of all the items you seek can help you stay on budget. (David Dee Delgado/Getty Images / Getty Images)
9. Consider Secret Santa or gift exchanges
Why not organize a Secret Santa or gift exchange with your friends or family?
This method cuts down on the number of gifts to buy, allowing everyone to invest in one meaningful present instead of numerous smaller ones.
It is a win-win for both your budget and meaningful gift-giving.
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During the holiday hustle and bustle, it is easy to get caught up in the whirlwind of materialism.
Yet, the true magic of this season lies beyond the wrapped gifts and extravagant spending.
It is in the laughter shared with loved ones, the warmth of gathering around a crackling fireplace and the joy found in simple, heartfelt moments.
Embrace thoughtful planning, foster heartfelt interactions, and revel in the magic of this festive season without the strain of financial stress.
After all, the most cherished gifts often reside in the beauty of shared experiences and the warmth of love and togetherness.