It’s easy to spend too much money on holiday shopping. But if you plan and make a budget, you don’t have to spend all your cash or max out your credit cards to have a good time. Use these eight helpful tips to ensure you don’t blow your budget for the new year on holiday spending.
People nowadays are less financial literacy. That’s why they spend too much on useless things and don’t save for the future.
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8 Ways To Manage Your Holiday Spending
Set spending limits for the holidays
Give your credit card and mind a break by only buying things you can pay for with cash. Use this time to make or fix up your budget, and use it to figure out how much money you can afford to spend.
Make your list of “good” and “bad” things.
Santa has to buy gifts for everyone, but you don’t have to. If you have more than five people on your shopping list who are not in your immediate family, start cutting it down.
Then, bake some cookies for everyone you took off your original gift list. This will keep you from looking like Scrooge and make sure you spread holiday cheer.
Don’t spend more than you can afford.
Your older brother paid off his student loans five years ago and always got you the most excellent gifts. But if your financial situation is different, don’t feel like you have to do the same.
If you’re not sure if the people on your list will like the cheaper gifts you get them, think about what your friends and family gave you when they had less money. You will be better friends in the new year if you don’t put each other in debt this year.
Start to save coupons and coupon codes.
You can get great deals on gifts for your friends and family in other ways besides sales. Before shopping, do a quick web search for coupon codes for your favorite online stores.
Look through the coupons you got in the mail before shopping in stores nearby. Compare prices for the item you’re interested in as you look through the flyers. If you keep an eye out for deals, you can save money.
Give your time as a gift
Mom and dad (or other far-away family and friends) might want nothing more than a visit from you. Another thought? Writing up a “free night of babysitting” card for family and friends with young children or a “good for a home-cooked meal” certificate for your widowed uncle that can be used when the time is right.
Build Better Spending Habits
Stop worrying about how you will pay off your credit cards next month by giving yourself the gift of better spending habits.
For example, for every dollar you spend on gifts, find a way to take that dollar out of your regular spending. You can use the money you save to buy gifts for the holidays, but you can put it in an emergency fund next month and for the rest of the year.
Give personalized gifts
A small gift that shows you care is better than an expensive one that the person might never use. Don’t give in to the urge to shop at trendy stores. Instead, take a moment to think about what the people on your list need.
For example, if your sister loves to bake but has trouble making homemade pie crusts, you could buy her a simple tool for making pastry for less than $10 and include a copy of a foolproof recipe.
Instead of holiday parties, organize group volunteer work.
During the holidays, your friends probably have the same trouble as you with spending too much. Give them a break by organizing a group volunteer day, so they don’t have to buy you gifts. It’s also possible to volunteer from afar. You won’t have buyer’s remorse at the end of the day because you did something good. Anyone can benefit from volunteering.
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