In many locations, Christmas turns out to be an expensive time. Moreover, the holiday period is associated with a lot of shopping, eating, and drinking. You may wonder, are there financial tips to reduce spending during the Christmas period you can implement? Using good financial tips can help you curtail your spending and avoid being short on cash as the New Year begins.
Here are some financial tips to help you reduce spending during the Christmas season.
Have a Christmas expenditure budget
First, you should set a Christmas budget. Including a Christmas budget within your household budget can help cushion the overall effect of Christmas expenditure on your finances. Remember, you can budget for unplanned purchases too. This way, your budget is not ruined. Surely, having a budget makes you more careful in spending unnecessarily or beyond what you can afford.
Create a shopping list
Second, do not just walk into that shopping complex. You may just spend all your money on unplanned purchases. Rather, make a list of intended purchases. Remember, it is all about how much you can spend. Not what you want to buy. Where the list becomes too long, go over it to reduce the list or spending amounts.
Inform family members of changing expectations early
Third, you may find it necessary to establish expectations early. For example, if you want to reduce the number of Christmas gifts this holiday, your kids should be aware of the new gift-giving habits.
Opt for secret Santa gift exchanges
In the same vein, you can use the secret Santa gift exchange for large gatherings. It is fun and exciting. More so, you may not spend more to buy gifts and cook for all. A draw is made where everyone draws a name secretly and purchases a gift for that person. Generally, a moderate spending cap is set up.
Besides, with this method, it is easy to cover the entire family in a list without anyone feeling the need to buy gifts for too many people. Similarly, you can use potlucks and e-cards as other ways to save money and time. For instance, you can get nice online e-cards instead of buying holiday cards and paying for postage for each.
Pay cash or use prepaid cards
In addition, after setting up your budget, you may decide to withdraw the money needed from your bank. Thereafter, you stick to your spending plan and pay cash for everything. Consequently, you would terminate your shopping once the cash is exhausted.
When it comes to shopping online, you can buy prepaid cards and use them. This will limit your spending to the preloaded amount on the card. In other words, you not only track your spending, but you also limit it. However, keep the reload fees and associated charges in mind.
Use savings with the least interest
Likewise, when financing your Christmas spend; dip into a savings account paying the least interest. Consequently, the cost in terms of alternative forgone will be reduced.
Take advantage of deals and discounts
Furthermore, it wouldn’t hurt to shop around for great deals. You may find several retailers offering discounts on their prices for the season. Similarly, supermarkets may entice you with bargain prices.
Keep your receipts
Sometimes, you may need to return defective goods or gift items. Likewise, your friends may need to return your gift items. As such, keeping your receipts makes refunding such presents possible.
Track your bills
Moreover, as you spend, it is wise to add up your running total. Perhaps, you can use your mobile phone or tablet for this. This way, when your bills arrive, you already have an idea of your bottom line. Moreover, it can help you reduce excessive spending. This means you become more disciplined in your approach to spending.
Use money-saving apps
Interestingly, there are a good number of budgeting and money-saving apps out there. These include Rakuten, RetailMeNot, and Honey. They can help you automatically get cash-back deals and discounts when you shop online. Besides, you can confirm prices on your phone or computer before making purchases.
Reduce convenience costs
Generally, with the holiday season comes increased “convenience” expenses. Due to added responsibilities and activities, you may just find yourself spending more unnecessarily. For example, you may order fast food because you are running late for an appointment. A little planning beforehand can reduce such extra spending.
Watch out for traveling expenses
Typically, a really large expense in this season is travel expenses. This is an important tip among financial tips to reduce spending during the Christmas period. Granted, you may consider it important to travel and be with family each Christmas. Still, you can look for ways to reduce traveling expenses. Perhaps you can book ahead at reduced rates? You may explore the option of light packing to avoid baggage fees. You may even pack meals and research hotel costs.
Improve your Spending Habits
Yes, it is possible to use this Christmas period as an opportunity to improve your spending habits. For instance, you could decide to carve out the amount you spend on gifts from your regular spending. Thereafter, you can use such amounts for your Christmas shopping. What’s more? You can continue the habit in subsequent months and save such money in your savings account.
Give personalized gifts
Again, a little planning can help you save money. After all, a small thoughtful gift may be better valued than an expensive gift the other party may never use. You can get creative and think of less expensive alternative gift items based on the passions and interests of family members. Examples of such gift items could include a framed photo, a decorative pillow, tickets for a show, or even an engraved letter opener.
Gift your time instead
Finally, if you are not able to buy someone a gift, consider giving them the gift of your time. Perhaps you can babysit or walk the dog if their schedule is tight. Your elderly relatives might appreciate your running errands or doing housework for them. Likewise, you could craft handmade gift items or make an extra batch of cookies.
The Bottom Line
In all of this, you can keep one thing in mind. The holiday season is about fun. You should not incur expenses that give you a debt headache. Rather, when you use these financial tips to reduce spending during the Christmas period, you avoid debt and keep your spirits up even after the holidays.
