It’s the most wonderful time of the year and probably the most expensive.
Between gifts, travel, decorations, and events, the holidays can be a stressful time for your wallet. However, it’s important to not get stressed out and avoid unnecessary debt or depletion of your savings account due to overspending. Here are some easy ways to keep yourself in check financially this holiday season.
Set a holiday budget
The first and most important thing is to set a budget. First, define how much you are willing to spend on everything on your vacation. This budget includes experiences, gifts, decorations, events, and travel. When creating your financial plan, keep your regular daily expenses in mind. Once you have the number, stick with it. To do this, be sure to record your purchases once you start spending.
create a list
Santa doesn’t have to be the only one making the list. You can too. Consider identifying a loved one you would like to give a gift to. You can also make a list of other holiday-related expenses, such as decorations and food. Having a clear list will help you plan your purchases in advance and avoid impulse purchases.
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You may find it helpful to save your yearly running list in the Notes app. When you find something that would make a great gift for a loved one or friend, take note of where you saw it and the price. If it’s in a store, note which one it is, and if it’s online, save the link so you can find it later.
Start early and save year-round
While it may be stressful for some to think about the holiday season before it’s even November, it may actually help you start your holiday shopping earlier. You don’t necessarily have to start shopping in spring. But starting your holiday shopping even a few months early, in late summer or early fall, can make a big difference.
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This spreads the financial burden and reduces stress when shopping. As the holidays approach, you may be pressed for time and worried about spending.
Shop sales and discounts
There are so many sales during the holiday season that it’s important to keep your eyes peeled. There are many opportunities to achieve significant savings throughout the season. Knowing what you want is helpful because you can also track specific sales.
Also, consider using coupons and loyalty programs to save even more money when shopping. I personally love browser extensions like Rakuten and Capital One Shopping that help me save money on online purchases.
Give the gift of time
If you’re like me and don’t like giving material holiday gifts, consider gifting an experience to a loved one. One of the greatest gifts you can be given is your time, and creating quality memories that you can cherish forever is truly priceless.
For children, you can consider giving them gifts for the future and putting money in a 529 savings plan or custodial savings account. The money you deposit today will grow with compound interest. Therefore, the money you deposit today becomes the gift that keeps on giving. Finally, don’t feel obligated to spend money on gifts. If you have time, tap into your crafty side and make your own presents. Your loved ones will still appreciate them and may love them even more.
End the season with savings
The holiday season is a time of joy, gifts, and family gatherings, but unfortunately it’s also a time of extravagance. But with a little planning (and personal restraint), you can avoid a financial hangover. For more money tips this holiday season (and all year long), follow us on Instagram where we share the best money hacks.
Erika Kullberg is an attorney and personal finance expert. You can find more of her work at Erika.com.
