Forecasted data from PWC predicts American consumers will likely spend $1,530 on holiday season expenses like gifts, travel, and entertainment, a 7 percent increase compared to the previous year. About 40% of these consumers anticipate spending more than the preceding year. With expenses escalating across the board, the festive season can take a toll emotionally and financially, and budget planning can be especially challenging.
If you – like me – cherish the holiday season, yet want to avoid monetary constraints, the following seven tips will help you establish boundaries that attract financial prosperity.
CREATE A HOLIDAY BUDGET
Prior to launching your holiday shopping spree, create a rigid budget, factoring in your financial condition and ensuring the budget is manageable. Use the money reserved for gifts, which should not be allocated for bills. If you wish to have extra spending money, it doesn’t necessarily have to be the surplus at month-end, as long as you’re spending cash without dipping into your rent fund.
MAKE A GIFT LIST AND ABIDE BY IT
Getting swept up in the holiday cheer often results in overspending, emphasizing the importance of a pre-set budget. Make a list of primary gift recipients and determine how much you wish to spend on each. Starting this process early allows you to spread out your purchases, easing the pressure on your finances.
SET YOUR SIGHTS ON EARLY SALES
Don’t wait for conventional seasonal sales like Black Friday or Cyber Monday. Most retailers run deals throughout the year. These sales can provide savings on big-ticket items you’ve had your eye on and help you stay ahead of the holiday rush.
COMPARE PRICES FOR THE BEST DEALS
Keep an eye out for sales, discounts, and special offers to maximize your savings. Plan your shopping trips around sales events, and use price-comparison tools. Stores often feature their best deals during the Black Friday and Cyber Monday window, so remember to compare prices online for potentially better bargains.
EXPLORE NON-TRADITIONAL GIFT OPTIONS
Consider alternatives to costly gifts, such as homemade presents, experiences, or charitable contributions. Instead of material presents, giving your time can be a meaningful and budget-friendly gesture.
DO-IT-YOURSELF DECOR AND GIFT WRAP
With Americans spending approximately $3.2 billion on gift wrapping annually, according to Hallmark’s research, you can save money by creating your own decorations and wrapping paper. This fun and festive activity can help save substantial money.
PRACTICE THE 3R’S: REDUCE, REUSE, RECYCLE
Inferior, less durable items tend to wear out rapidly, leading to waste and additional costs. Opt for gifts with minimalist packaging, like concert tickets or gift certificates. Send cards made of recycled content to reduce virgin paper use during holiday season. Environment-friendly gifts made from recycled materials are also a great option.
IN A NUTSHELL
Establishing financial boundaries during festive seasons is a proactive way to manage your finances without sacrificing seasonal enjoyment. It helps avoid financial stress and debt, prevents impulse buying, and encourages a healthy, sustainable relationship with money.
