Get your wallet ready, the biggest shopping season is about to begin. This year, shoppers are expected to spend an average of $1,012 during the holidays. That’s up from $975 last year. While we all want to get great gifts for our loved ones, there’s no need to go broke in the process. Here are some easy ways to reduce your holiday spending while still spreading love and joy with thoughtful presents.
Have a Plan
Before you hit the stores, take some time to figure out how much money you can comfortably afford to spend. Once you have a budget in mind, create a list of intended recipients along with what you plan to buy each person. Explore a variety of gift options and categories to find the perfect items for everyone on your list. By shopping with a plan, you’ll avoid picking up things impulsively and make it through the aisles quicker. Stick to paying for your gifts in cash since credit cards make it too easy to get carried away.
Set a Realistic Holiday Budget
Setting a realistic holiday budget is crucial to avoid overspending and financial stress. Start by tracking your income and expenses to get a clear picture of your financial situation. Make a list of all your necessary expenses, such as rent or mortgage, utilities, and groceries. Then, determine how much you can comfortably afford to spend on holiday-related expenses, including gifts, decorations, and entertainment.
Consider using the 50/30/20 rule as a guideline: allocate 50% of your income to necessary expenses, 30% to discretionary spending, and 20% to savings and debt repayment. Be realistic about what you can afford to spend, and prioritize your spending based on your values and goals.
For instance, if you have a large family or many friends to buy gifts for, you might need to allocate a larger portion of your budget to gifts. On the other hand, if you’re looking to cut back on expenses, consider setting a lower budget for gifts and focusing on more affordable options, such as homemade gifts or experiences. By setting a realistic holiday budget, you can enjoy the season without the stress of overspending.
Create a Thoughtful Gift List
Creating a thoughtful gift list can help you stay focused and avoid impulse purchases. Start by listing all the people you need to buy gifts for, and then brainstorm ideas for each person. Consider their interests, hobbies, and preferences, as well as your budget.
Think about giving experiences as gifts, such as tickets to a concert or a fun activity, rather than physical presents. You can also consider making homemade gifts, like baked goods, crafts, or photo albums. These types of gifts show you care and are willing to put in the effort to create something special.
Another idea is to create a “wish list” for each person, where you ask them to provide you with ideas for gifts they would like to receive. This can help take the pressure off and ensure you get something they’ll truly appreciate. By creating a thoughtful gift list, you can make your holiday shopping more efficient and meaningful.
Use the Four-Gifts Rule
Movies always make it seem like you’re supposed to wake up to a room full of gifts on Christmas morning. Not only is it unrealistic, you probably don’t have the storage space anyway. Keep things simple and follow the four-gift rule this year. Rather than purchasing everything on your kids wish list, you’ll only buy something they want, something they need, something to wear and something to read.
Pull Names
If you come from a large family, you know how much of a burden it can be to buy gifts for everyone. To reduce your holiday spending, have everyone participate in a Secret Santa gift exchange. The rules are simple. Write down everyone’s name on a piece of paper and place it in a bowl. One by one, have each player pull out a name. The name you choose is who you’ll be buying a gift for. Once all of the names have been selected, agree on an acceptable price range and select a gift-exchange date. Then, shop for the perfect gift for the person you picked, exploring different options to make the experience enjoyable.
Take Advantage of Shopping Holidays
Black Friday and Cyber Monday are two of the biggest shopping holidays for a reason. Shop for the best deals and you may be able to save hundreds of dollars on your purchase. Most retailers begin releasing their Black Friday ads during the first week in November so keep your eyes open. Once you get your hands on a copy, come up with a shopping strategy so you don’t miss out on the best deals.
Beware of Sneaky Sales
While you’re working to spend as little as possible, retailers are hoping for the exact opposite. One way stores trick you into spending more money is by advertising tiered offers. For instance, they’ll say save $5 when you spend $25, $10 when you spend $50 or $20 when you spend $100. Before you know it, you’re throwing random items in your cart just because you want the discount. Don’t take the bait. Unless you were already planning to spend the required minimum, this isn’t a good deal.
Get Free Shipping
Want to save money on shipping while creating a warm and inviting home atmosphere during the holiday season? Most stores will waive the shipping fee if you spend the required minimum. If you don’t mind waiting until the last minute to do your holiday shopping, hold out until Free Shipping Day. On December 14th, most stores will be offering free shipping on all orders with guaranteed delivery by Christmas Eve.
Get Creative with Holiday Activities
The holiday season is a great time to get creative and try new activities with your loved ones. Instead of breaking the bank on expensive gifts or events, consider hosting a potluck dinner, game night, or movie marathon. You can also try making homemade decorations, like paper snowflakes or popsicle stick ornaments.
If you’re looking for more adventurous activities, consider volunteering at a local soup kitchen or participating in a community event. These types of activities can help you give back to your community and create meaningful memories with your loved ones.
Another idea is to start a new holiday tradition, such as making a special recipe or going on a winter hike. This can help create a sense of excitement and anticipation around the holiday season, and provide a fun way to spend time with your loved ones.
By getting creative with holiday activities, you can create a more meaningful and memorable holiday season without breaking the bank.
As you wrap up your holiday shopping and start planning for the year ahead, remember that smart financial decisions don’t stop at gift-giving. Take the next step by getting ahead of your taxes! You could maximize your refund and save even more by filing a free federal tax return with ezTaxReturn, if you qualify. Don’t wait—start preparing today to keep your holiday spirit and your wallet full for the new year!
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
