
Top 7 Tips to Rein in Your Holiday Spending
The holidays come with a lot of unexpected expenses, from wrapping paper and holiday cards to baking materials and those last-minute items that are always forgotten until you need them. While the holiday season can be a joyous time of year, it can also take a toll on your budget.
But it is possible to have a great holiday season and not go into debt. Here are some tips for reining in your holiday spending and being frugal while still enjoying the holiday spirit.
1. Recognize Your Spending Triggers
Spending triggers are when certain emotions cause you to spend money. If you find yourself getting stressed and making purchases because of feelings rather than needs, you might subconsciously have a spending trigger.
If you want to avoid making spontaneous purchases this holiday season, think about how you feel when you buy something. This can help you figure out if certain situations trigger you to go shopping. Remember, you don't need to go into debt to make the season special for your loved ones.
Once you identify your triggers, take steps to avoid those triggers or replace shopping with something else. For example, if you shop when you're stressed, try to go for a walk instead. You can also unsubscribe from store emails and delete shopping apps from your phone to avoid the temptation of shopping. Another trick is to enforce a waiting period before you make a purchase. Chances are you might not want the item after thinking about it for a day or two.
2. Make a List
When it comes to the holidays and staying within budget, lists are key. Once you decide on a budget for the season, make a list of everything you need to buy. Keep the list even after you've finished shopping so you remember what you bought for everyone. Even if you see something that's a better deal or fit than what you already bought, remind yourself that it's not on the list. And if it's not on the list, it doesn't belong in your shopping cart!
You can also price-check your list before you start shopping so you know your price range ahead of time.
3. Set Clear Expectations
Before the holiday season kicks off, sit down with your family and set clear expectations. Decide what's most important, and set up your budget accordingly. That might mean spending most of your budget on plane tickets to see your parents, or cooking a meal from scratch. Here are some questions to ask yourself as you set your holiday expectations:
- What is your food budget?
- How much money will you spend on gifts?
- Do you plan to travel?
- Are there certain traditions that are important to your family, like making cookies together or seeing the holiday decorations in your neighborhood?
If your budget is going to differ this year compared to past years, let your family know. Consider other fun ways to do gifts, such as pulling names for Secret Santa with a predetermined gift budget. If you can't travel this year because of financial restraints, be up front and honest about it with your family.
4. Open a Separate Savings Account for the Holidays
One way to keep your budget on track is to set up a separate savings bucket just for the holidays. Look at how much you spent in prior years to get an idea of the average amount you spend during the holiday season.
Then, instead of relying on your December paychecks to get you through the season, plan ahead and save the money you need throughout the year. You can do that by setting up an automatic savings plan, which essentially puts a chunk of money into a separate account or sinking fund each time you get paid.
When shopping for the holidays, use that separate account so you aren't dipping into your everyday checking account. But make sure to be aware of your other savings and retirement accounts. Your holiday budget shouldn't get in the way of meeting your savings goals.
To earn extra cash throughout the year, consider opening a high yield savings account like those offered at Synchrony Bank. With no minimum deposits or monthly fees, it's a great way to help grow your funds.
5. Consider Thrifting
Not all gifts need to be new. To save on gift-giving this year, consider buying used items. You can find a lot of great deals on Facebook Marketplace, through secondhand apps like Vinted and at local thrift shops. Plus, buying used is good for the environment.
You can also consider regifting items, especially if it's something you no longer use but the recipient will love. Or consider giving the gift of time spent with others, or a ticket to an event instead of an item. In the end, the holiday season is about the thought behind the gift, not its monetary value.
6. Shop During Sales
If you have a specific gift in mind, wait for the sale season to find a good deal. While you can find some sales during the holiday season, such as on Black Friday, pay attention all year-round. Set up price alerts through Google Shopping so you know when an item lowers in price. You never know when you'll find the perfect gift on sale.
You can even consider shopping year-round for the holidays. While it takes a bit of extra prep, it can mean you spread your spending throughout the year. You can also take advantage of other sales, such as Labor Day and Prime Day sales.
7. Use Coupons
Coupons aren't just for groceries. You can also search coupon sites to find deals on many high-end items that would make great gifts. With coupon sites, you can find promotional codes and alerts for when specific items are on sale.
Enjoy the Holiday Season Without Going into Debt
While the holiday season can be stressful and expensive, you don't need to go into debt to have a magical holiday. By setting a budget, talking to your family ahead of time, saving for the holidays beforehand and shopping for sales, you can enjoy the holiday season this year without blowing the budget.
Looking for other ways to save? Discover other simple ideas for how to save money fast.
READ MORE: Get More: Joy From the Holidays