Holiday shopping and entertaining involve a whirlwind of activity to round out the end of the year. The holiday season also tends to be an expensive time of year. According to Capital One Shopping, the average spending for holiday travel, gifts and entertainment expenses is $1,638. The National Retail Federation says American consumers spend an average of $997.73 on gifts and other holiday items each Christmas.
For some people, adding an additional $1,000 to their November or December budgets can be challenging, and many individuals seek budget-friendly solutions for their holiday celebrations. The following guidelines can help corral spending this year.
Set a budget
It’s impossible to keep a budget if one is never established in the first place. Determine how much you can comfortably spend on gifts, travel and entertaining, as well as any other holiday expenses. Once the number is calculated, divvy up spending accordingly.
Plan your list
Make a list of everyone you need to purchase gifts for, along with gift ideas and estimated costs. Set a dollar amount for each individual, particularly if you will not be spending the same amount on each person. Having numbers in black and white, and comparing them to what you have allocated for gifts, will enable you to see whether you are overspending or on budget.
Shop early
Begin holiday shopping as early as possible. Such an approach enables you to take advantage of sales as they come up. Also, you will not fall victim to impulse buys or last-minute purchases because you are under a time crunch.
Track spending
Utilize whatever method works for you to keep apprised of spending. It may be jotting down numbers on a piece of paper or using a budgeting app on a smartphone. Having a clear idea of what you have spent and any dollars remaining will help you keep your overall spending in line with your budgeted amount.
Get coupons
Signing up for stores’ loyalty programs can enable you to receive members-only coupons or digital codes to your phone or email. Compare the discounted final price with other stores’ offers to make sure that you are getting the best deals. Browser extensions also can search automatically for coupons and apply them to the checkout when online shopping.
Use credit cards wisely
Credit cards come with various perks, many of which are points or cash back accumulated with each purchase. Utilize a card that works best for your needs, whether it’s to get airline miles or score extra spending money for a particular retailer. Only charge what you can pay in full when the bill arrives; otherwise, the benefits may be negated by high interest rates.
