The holidays are rapidly approaching. If you’re anything like most people, you’re probably wondering what the heck happened to this year and aren’t quite ready financially for the holiday.
The statistics are aย cause for concern. In 2022, the average debt among those surveyed by Lending Tree about holiday expenditures was $1,549, a 24% increase from 2021 (1). Moreover, thirty-seven percent of those who take on debt anticipate paying it off in five months or longer. This kind of holiday letdown is not what you want.
The good news is that you still have time to start saving money. These are some tips for getting through the holidays with ease.
Start and Stick to a Budget
Finding out how much you can afford during the season should be your priority.
Avoid the error of focusing solely on the cost of the presents. Along with decorations, travel costs, cards and mail, groceries, festive clothing, and other items, your holiday budget should also include these.
After you discover your magic amount, what do you do?
Letโs Save It
Save money right now if you don’t currently have it all. Though ideally you should have started saving months ago, anything you manage to put aside in the coming weeks will help. Save the funds in a different account specifically for using on holidays.
Although it might be time-consuming, setting aside money for the holidays helps you remain aware of how much you spend and how much is left over.
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Make a List
As much as you would like to cheer people up, you might need to reduce your list. Identify what to buy for each person on your list. Unplanned purchases and excessive browsing are the last things you want. That will blow your budget.
Purchase Wisely
What else can help you fight the impulse to indulge and save money besides sticking to your list? Every task has an app available.
You may stay inside your budget by using apps like Christmas Gift List and Christmas Gift List Tracker. The apps alert you when you reach the limits you’ve established for each user.
Register for notifications from the stores you love. You’ll receive sales notifications. Check out websites like Raise and Card Cash for amazing discounts on gift cards. To get the most discounts, combine coupons with sales.
Don’t Allow Rewards to Expire
Given that almost one-third of us never use our credit card incentives, what use are they?
Check to see whether you can use points from credit card rewards or loyalty programs to offset the cost of gifts, vacation, or food. Perhaps you can use the miles you’ve been saving up to offset the cost of a trip to see your in-laws, or your credit card points can be used to pay for gift cards from coworkers.
Allow your incentives to cover both large and minor expenses so you can concentrate more on creating memories with your loved ones and less on worrying about your finances.
Be Imaginative
You are aware that when it comes to gift-giving, you should think creatively and consider all your alternatives, like creating or baking a gift or shopping at thrift stores and internet marketplaces.
But don’t stop being creative. It’s okay to share the workload while throwing a party; turn it into a potluck. Give ‘experiences’ as gifts instead of pricey things from the store.
One of the biggest expenses of your vacation may also be travel. Make a one-way flight reservation. To help you plan the most affordable route, this lets you search for flights into and out of many airports in the same or nearby locations, using a variety of carriers. To save money overall, it’s also easier to redeem points or miles for a portion of the trip.
Cashinโ In
Select cash over credit or debit cards.
Swiping your card when you’re rushing around the mall is so simple. However, if you regularly find yourself in debt during the holidays, think about making the commitment to live entirely on cash, at least during this time. For a lot of people, spending money in person makes it feel more real and increases the worth of the items being purchased.
Make Your Plans Known
Giving your friends and family advance notice of the type of Christmas you’re preparing allows them to prepare for the possibility that things may be different this year. It is equally critical to manage and adhere to expectations. Don’t keep your plans hidden.
To Wrap Things Up
As the holiday season approaches, the financial strain can often overshadow the festive spirit. The alarming increase in holiday debt underscores the need for a strategic approach. Starting with a well-defined budget and disciplined savings, you can regain control. Thoughtful planning, wise purchases, and creative alternatives can make a significant impact.
Embracing a cash-only approach this holiday fosters a sense of financial mindfulness, ensuring a more meaningful celebration. Communicating your plans transparently with loved ones manages expectations and fosters understanding. Remember, the true essence of the holidays lies in shared moments, not in financial stress. By implementing these money-saving tips, you can navigate the season with joy and financial ease.
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