7 Ways to Save Money This Holiday Season
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Christmas is right around the corner. As much as I love all the holiday fun, sometimes it hurts my wallet. It is super easy to overspend at the holidays and wind up paying for your Christmas gifts well into the new year. Don’t feel too bad if this sounds familiar. According to CNBC, “A new holiday survey from American Express Pay It Plan It found that 86% of millennials (23 to 38) spent more money during the holidays last year than they planned to. Of those who overspent, about one in five (21%) went over budget by approximately $500 or more.”
Don’t fret. With these 7 tips, you can save money this holiday season while still enjoying all the holiday cheer.
1. Create a Budget
Before you begin holiday shopping, you need to create a budget. Make a list of every person you plan to buy gifts for and set a budget for how much you are willing to spend per person. Prioritize the list. For example, designate more money for your immediate family members and less money for your co-workers.
Note – Stick to your budget. It’s pointless if you make a budget and don’t follow it.
2. Prioritize Your Spending
When budgeting, think beyond gift giving. We tend to spend a lot of money during the holidays on extras, such as holiday décor, entertainment, and food. Limit the extras on your budget. Plan for those things you know you must have and allocate a certain amount. For example, you know you will have a holiday meal, so set aside money for it now rather than going overboard when the day comes.
On the same note, be sure to include stocking stuffers in your family’s gift budget. If you aren’t careful, you can wind up blowing your budget on these little things.
3. Only Buy Items on Sale
Make it a rule this holiday shopping season to only buy items on sale. Refuse to pay the full price for anything. Thankfully, technology makes this super easy. For example, go ahead and set a price drop alert for the hot toy item on your child’s wish list using Camel Camel Camel, which tracks Amazon price drops. Look for coupons online before you click buy (or on your smartphone while shopping in-store). Use price comparison apps to make sure you are getting the best price.
4. Start Shopping Now
Sadly, 2020 production is still slower than usual, so anticipate delays and products running out. If your child wants a popular toy, it is better to go ahead and buy it than risk waiting and not be able to find it. The good news is most big stores have already started Black Friday and holiday deals now.
5. Shop Online
You can save money shopping online this holiday season. According to a First Insight report, “89 percent of women and 78 percent of men who visit physical stores shared that they add additional items to their cart beyond their identified need. By comparison, a lower 67 percent of men and 77 percent of women reported adding extra items to their carts when shopping online.”
6. Take Advantage of Curbside Pickup
Along the same lines, rather than going into a store and overspending, take advantage of curbside pickup. This will prevent you from impulse buying and overspending. Plus, curbside pickup is convenient and safe.
7. Talk to Family and Friends About Cutting Back
The best way to cut back on overspending is to stop spending as much. Period. I’m not suggesting you quit buying Christmas presents, but it may be time to cut back on the number of presents you buy or how many people you buy for or how much you spend on each person. For example, ask if your family would like to draw names to give to one person rather than giving to everyone or ask family members to set a spending limit.
