PWC predicts that Americans are likely to entertain, travel, and buy presents amounting to $1,530 this festive period, indicating a 7% hike from 2022. Roughly 40% of this population is predicted to spend more than they did the previous year. Given the increase in cost of living, managing holiday expenses can be daunting, both financially and emotionally. It gets even tougher when we have different spending habits and financial values with our loved ones. But no need to worry; if you’re a holiday enthusiast, and yearn to fully relish this season without harming your bank account, here are seven guidelines to ensure a successful financial season.
ESTABLISH SPENDING LIMITS
Before anything else, prepare a stringent budget for your holiday expenses. Scrutinize your income and come up with a comfortable amount. Your gift budget should be sourced from funds not assigned for bills. However, you can always spend more provided it’s surplus cash, not integral for paying your rent or other necessities.
CREATE A LIST, AND ADHERE TO IT
Gift expenses can swiftly get out of hand without proper planning. The best approach is to prepare your gift list early and stick to it. This early planning also paves the way for early shopping and cushioning your wallet from the usual end-year financial blow.
SHOP EARLY
Don’t just wait for Black Friday, Small Business Saturday, or Cyber Monday to grab deals. There are various sales throughout the year so make the most of these. Buying larger items you’ve been coveting during these early sales can be a cost-effective strategy.
HUNT FOR HOT DEALS
Seek out promotions, discounts, and sales to save on your holiday shopping. Use price comparison apps or websites, and plan your shopping around sales events. Ensure you’re well-versed on pricing details, and don’t overlook online retailers who may offer sweeter deals.
THINK BEYOND COSTLY GIFTS
Explore the option of giving inexpensive but meaningful presents, such as homemade treats, experiential gifts, or contributions to charities. Another precious but cost-less gift can be spending quality time with distant loved ones.
DO-IT-YOURSELF WRAPPING AND DECORATIONS
Wrapping and decorations can add up surprisingly quick, with Americans spending $3.2 billion annually on gift wrap according to Hallmark. So, why not get crafty and make time for a festive activity of DIY wrapping and decoration creation.
RECYCLE, REDUCE AND REUSE
Gift sustainably to save money and help the environment. Opt for gifts with less packaging and ones that are more durable. You could also consider low-impact gifts like a solar phone charger, Water bottle, or reusable shopping bag. Do not forget, homemade cookies are always a nice touch. Always remember to recycle materials like card boxes, electronic gadgets and unwanted gifts.
THE BOTTOM LINE
