The holiday period is a time of great cheer, but also of great spending. Many people resign themselves to spending a fortune on gifts, decorations, and food, but it doesn’t have to be that way.
There are some simple ways you can take control of your holiday spending. Keep reading for some holiday budgeting tips and general advice to make the most of the holiday period.
5 ways to take control of your holiday spending
1. Set a holiday budget
The first way to take control of your spending is to decide exactly how much you have to spend. Take a seat and work out how much you’d like to spend and what your absolute maximum is.
What do you have leftover to spend after the bills and other essential expenses are taken care of? What can you cut back on for the next month or so to free up some extra cash?
Be realistic about anything you’re willing to give up. That way, it’ll be easier to stick to your budget.
2. Make a list of gift recipients
Once you have your total budget, make a list of everyone you’d like to buy gifts for. Try to keep this list short and then allocate a budget for each person.
You don’t need to buy for absolutely everyone you know. For those who don’t quite make the cut, consider baking cakes or cookies and gift wrapping them as an alternative. Sometimes handmade gifts are even more appreciated.
Another idea to keep your recipient list short is to team up with a group of friends or family members who are also trying to save money. Instead of buying a gift for everyone, put everyone’s names into a hat and pick one at random. Each person buys a gift for just that one person. That way, everyone gets a gift, but no one has to overspend.
3. Resist the urge to match last year’s budget
Just because you spent $200 on someone last year does not mean you have to do the same this year. If your financial situation has changed or you are just trying to save more money, it makes sense to work with a smaller budget this time around.
Similarly, if your brother-in-law, who makes twice as much as you, buys everyone fancy gifts, you don’t have to play catch up.
Guilt can easily lead to overspending, which can quickly get out of control. Try to focus on your own budget and resist the urge to compare it to last year’s or other people’s budget.
4. Use a prepaid debit card
When shopping on a budget, your choice of card can make all of the difference. If you know you’ll struggle to avoid overspending, a prepaid card is a great choice. All you have to do is load up your holiday budget and only use that card for holiday shopping.
5. Use a shopping voucher app
While clipping coupons out of magazines hasn’t quite disappeared, more and more people are using voucher apps, websites, and browser extensions to save money. Do a search for “best browser extensions to save money” to see a list of ones that might be helpful to you.
Getting into the habit of using these tools for all your purchases could help you shave off a few dollars here and there that quickly add up.
Sticking to a holiday budget doesn’t need to be complicated
Sometimes the best budgeting tips are the simplest. By using some or all of the above ideas, you can make small changes to your spending and saving habits to ease some of your money worries.
Remember, plan ahead, stick to your budget, and do what you can to avoid impulse purchases.
If you often struggle with holiday spending, next year, make it your mission to start saving a small amount each month in the run-up to the holiday period. Some savvy savers even start as early as January because it gives them so long to save up. That way, you’ll avoid the stress that can often come with the holiday budgeting and the shopping rush.
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