Forecasts predict American shoppers will spend around $1,530 on holiday-related costs like gifts, travel, and entertainment – a 7% increase compared to 2022, according to PWC. It’s also anticipated that 40% will exceed their previous years’ expenditures. In such a climate of escalating costs, the holiday season might cause emotional and financial strain. Therefore, careful budgeting becomes imperative, particularly when loved ones might not share your financial reservations during this festive time.
If you are keen on celebrating the holidays to the fullest without financial regret, here’s how you can set boundaries for a prosperous season:
FIX BUDGET FOR HOLIDAY EXPENSES
Begin by setting a concrete budget for your holiday expenses. This should be an amount you can comfortably afford without compromising on essential bills and costs. Extra money for gifts should not deter your regular essential expenditures. So even if you have some cash left over at the end of the month, use it judiciously, ensuring you don’t spend your rent money in the process.
CREATE AND ADHERE TO A GIFT LIST
To curb over-expenditure in the spirit of holiday gifting, create a budget and outline a list of vital recipients and your intended spend per person. Planning ahead offers the opportunity to start early and avoid a concentrated hit on your purse closer to the holidays.
TAKE ADVANTAGE OF EARLY DISCOUNTS
Don’t hold out for traditional seasonal sales events. Most reputed retailers offer deals and discounts all year around. Shopping early for both gifts and holiday apparel could save money on significant purchases. In addition, it’ll help you avoid the last-minute holiday shopping frenzy.
SEARCH FOR THE TOP BARGAIN
Scour for sales, promotions, and discount deals to make the most of festive shopping. Use price comparison tools, and remember, e-retailers might offer better deals compared to physical stores. Research prices ahead of the annual heavy discount period between Black Friday and Cyber Monday.
THINK OUTSIDE THE BOX FOR GIFTS
Expensive presents can be replaced with innovative alternatives such as homemade items, experiences, charitable donations, or even spending time with distant loved ones. This ensures tokens of affection are meaningful and pocket-friendly.
DIY YOUR FESTIVE TRIMMINGS
Americans reportedly spend a whopping $3.2 billion annually on gift wrap alone (Data: Hallmark). To cut back, create custom decorations and wrap gifts in homemade paper. This not only reduces expenses but also adds a touch of personal creativity to the festivities.
ETHICAL AND SUSTAINABLE GIFTS
Cheap, perishable gifts tend to create waste and cost more in the long run. Think gifts that require minimal packaging, like event tickets or gift cards. Send cards made from recycled material. Environmentally friendly presents such as a reusable shopping bag, a solar-powered phone charger or toys made from recycled materials are thoughtful and unique. Don’t forget perennial holiday favorites like homemade baked goodies. Reinforce the spirit of recycling by reusing gift boxes, and recyclable items.
TO CONCLUDE
Establishing financial boundaries is integral to achieving a stress-free holiday season without compromising your financial health. It reduces the risk of overspending on festive expenses, which might escalate into a potential debt. Cap your expenses to avoid post-holiday debt and ward off the chance of impulsive purchases, thus laying the groundwork for a sustainable financial future.
Credit: SmartAsset.com
