Tips for Trimming Holiday Spending

From gifts and décor to ugly sweaters and decadent treats, there’s seemingly no end to the things you need to spend money on to create the perfect holiday.  If you’re not careful, it’s easy to max out your cards and deplete your cash.

Fortunately, avoiding the bah-hum-bug-I’m-broke blues is avoidable. With a little pre-planning and, yes, self-control, you can have a happy holiday without sacrificing your financial stability.
 

Set a Budget

Look at your must-have monthly expenses (e.g. rent, insurance, loans, etc.) versus your income. Determine how much extra cash you have after essentials and how much you can safely put towards holiday expenses, including travel if that’s part of your plans.

You may also want to look at the statement for whatever credit or debit card you use most. Look for expenses that aren’t essential (yes, we’re looking at you daily latte grande, lunches out, and Amazon indulgences). Decide what you’re willing to sacrifice to fund the gift-giving you aspire to do for the holidays and set a spending budget.

Keep careful track of what you buy online and in person and keep spending below the cap you set.

Check your rewards

If you have a credit or debit card that offers reward points or cash back, check your balance and decide if you want to apply any of it toward your gift giving. If so, add it to your budget.

Make a list

Create a list of the people you’ll be giving to and determine what you’ll get them based on your budget. Review and refine your list to the point your truly happy with your choices. Then, when you venture out to go shopping, take the list and stick to it. If you find yourself tempted to deviate (and overspend), remember that breaking the budget for one individual means you’ll have to compromise your giving for someone else.

Embrace Homemade

Don’t dismiss the worth or impact of a handcrafted or home-baked gift just because you made it. A blueberry loaf made for someone who absolutely loves blueberries will be appreciated much more than a mass-produced candle, no matter how pretty the container. Include a note with your gift explaining how the color, the flavor, the whatever made you think of them and how you appreciate what they bring to your life.  An honest sentiment is a gift that will truly keep on giving.

Be Coupon Savvy

Whether you’re shopping in person or online, be sure to do an internet search for coupons, rewards apps and deals. Visit the websites for the specific retailers you plan to shop as well as coupon websites such as Koupon.ai, Retailmenot, and Rakuten.

If you’re still struggling to make your budget cover all those on your gift list, consider giving the gift of time. Fulfilling the promise of a monthly one-hour visit with an elderly relative, a monthly movie matinee with a dear friend, or taking in a college hockey game with nieces and nephews, will keep the spirit of the holidays alive long after the decorations have been put away and the shiny new things forgotten.

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, investment or legal advice.