There’s no doubt about it – it’s hard to save money during the holidays! The holidays are expensive. But they don’t have to cost you an arm and a leg this year! If you’re still doing your Christmas shopping, here are five creative ways to save money and keep those expenses low.
Tip #1: Create a Budget
The first step you should be taking when it comes to your holiday spending is to create a budget. For presents, you’ll definitely want to set a “max” amount for each person and it doesn’t have to be the same for every recipient. You could set $50 for one person, but $10 for another.
And your budget isn’t just about the presents, either! Think about food, travel, decorations, and more – how much can you comfortably spend without hurting your wallet?
The most important thing though is sticking to your budget. It can be easy to go over a few dollars here, a few dollars there, but it adds up in the end!
Tip #2: Opt for Things Like Secret Santa
If you have a lot of people in your friends group or your coworkers are talking about getting gifts for one another, you may want to suggest a game like Secret Santa. This helps keep costs low as you won’t have to buy presents for every person on your floor or each friend. You should also set a minimum or maximum for the gifts when laying down the ground rules.
Tip #3: Get Thoughtful Gifts
Thoughtful gifts don’t have to be expensive! On the contrary, they can be within your budget and will be much more appreciated. Creativity during the shopping process can help out your wallet, too.
Tip #4: Use Cash When Possible
Although you may be tempted to put your Christmas spending on your credit card and pay for it later, this is a very bad idea. It can be easy to rack up that debt because you’re feeling a bit generous and get well away from your budget. Paying with cash or your debit card, however, can make it easier to track your spending and stay within your set budget.
If you have to use a credit card or want to get the rewards your card offers, make sure you can pay it off at the end of the month.
Tip #5: Think About Other Ways to Save Money
Saving money in other areas of your life can actually free up some cash for your holiday spending! Refinancing your student loans, for example, can result in a lower interest rate or lower monthly payment. You can also think about taking advantage of credit card points – for example, some companies allow you to use points to get gift cards and other great presents!
The holidays can be stressful on our bank accounts, but going in with a game plan can make it easier than ever to keep costs (and stress) low. Following these five tips is an excellent way to have your wallet thank you as we head into the new year. Launch our financial planner to make sure you are on the right track to saving money.