Even with the best of intentions, it’s easy to let your holiday spending get a bit out of control. You start with a plan to buy just a few holiday gifts—and pretty soon your car is full of items that you didn’t necessarily have room for in your budget and you’re wondering how to save money for Christmas next year.
To avoid making this costly mistake, consider sitting down to make a holiday budget before you start shopping. This way, you can enjoy the holiday season, give fun Christmas gifts to those you love, and avoid running into financial trouble while still maintaining your savings goals. In addition to making a budget, you may want to consider getting cash back rewards by enrolling in a savings account from The People’s Federal Credit Union.
And, if you’re still looking for ways to save money during the holidays, here are some helpful savings tips for when you need to do Christmas on a budget.
Set a Christmas budget
One of the best ways to avoid overspending during the holidays is to set a budget of the maximum amount you can afford to spend on buying your friends and family gifts. This budget will look different for everyone depending on your monthly fixed expenses, your savings goals, and what you’d feel comfortable spending considering your income.
Make a holiday shopping list
Coming up with cheap, fun gift ideas before you start shopping can be a great way to cut down on your Christmas spending.
Start by making a list of people you’d like to buy gifts for, then take your time looking for gift exchange ideas in magazines or online while keeping in mind what each gift may cost you.
Comparison shop
Once you have decided what you are going to purchase for everyone on your list, take some time to compare prices between retailers.
In addition to looking for great prices, you can also search for things like free shipping and coupon codes for shopping online, which will bring down the final cost even further.
Start Christmas shopping early
Although buying gifts at Christmas festivals or markets may be fun, the vendors often get away with overcharging people shopping so close to Christmas time. Instead, start your Christmas shopping early by choosing to shop online or buy gifts during sales or whenever they’re on discount.
Shop for deals all year long
If you can get your Christmas list down early you stand the chance to take advantage of some pretty great sales throughout the year. Black Friday, discounts for buying in bulk, and finding great gift deals online during months without any holidays are great ways to save money while still buying great, affordable gifts.
Don’t shy away from thrift and discount stores
Buying used items or cheap gifts from a thrift shop or discount store can be a great way to save money. Thrift stores are perfect to shop secondhand for vintage clothes, trinkets, or stocking stuffers on a budget.
With a little wrapping paper and some creativity, no one need ever know how much money you saved on their gift. Better yet, most discount stores have great deals on gift wrap so you can save money on that too.
Consider coupons or homemade gifts
DIY gifts and gifts of service, like breakfast in bed or a plate of freshly baked cookies, are all great choices for cutting down your spending. If you love crafting, baking, or sewing, your homemade gift choices are endless.
Limit the number of gifts you’re buying
Another great option to cut down holiday expenses is to set a limit on the number of gifts you plan on buying. One way to do that is by opting for a gift exchange like secret Santa which requires everyone at Christmas dinner to buy only one gift for one person they’re assigned to in secret.
Save in other areas
To make some extra room in your budget for holiday gifts and other costs, consider cutting back in other areas for a month or two as part of your savings plan.
You could also sell items you don’t use anymore, opt for a more affordable, alternative tree, or reuse gift boxes and bows to cut down costs.
Leave a little wiggle room
To avoid ending your holiday spending more than planned, aim to keep around 10% of your original Christmas budget as extra money. That’ll give you a little extra room if you end up spending too much money on a few gifts and prevent you from cutting into your holiday savings.
Also, it will give you the freedom to change your mind at the last minute and spend a bit more on a different gift that you think is a better choice.
Avoid buying gifts on credit cards
Although paying off your Christmas spending on a month-to-month basis may seem like an easy solution, the idea of paying for gifts later can make it easier to spend more than you can afford on gifts as you won’t see any immediate change to your bank balance.
There is no reason to add stress to the holiday season by stretching your budget to its absolute limit. Consumers spend billions every year exchanging gifts and buying unaffordable presents only to suffer the consequences a week or month later. Instead, try to apply some of the tips on how to save money during the holidays above to keep things within reason while still having fun with your family.
If you need help planning your Christmas budget or want more information on how The People’s Federal Credit Union can help make Christmas a little easier on your pocket, call (806) 359-8571 today.
