As we approach the holiday season, PWC predicts that American consumers will raise their spending by 7% from last year’s figures, investing an anticipated $1,530 on gifts, travel, and other holiday-related activities. It seems that about 40% of consumers are set to exceed their spending from the previous year.
No doubt, the holiday season, despite its joys, can be financially and emotionally draining, further complicated if your loved ones don’t share your fiscal sensibilities during such times. Yet, for those like me who find the holidays irresistible and wish to enjoy them without putting a dent in the wallet, here are seven practical strategies to align your holiday enthusiasm with financial prudence.
ESTABLISH SPENDING BOUNDARIES FOR THE HOLIDAYS
Create a clear budget outlining how much you can afford to spend this holiday season. Analyse your financial situation and settle on a figure that you will not strain to cover. Ensure that the funds intended for gifting aren’t repurposed from money you would typically set aside for other expenses. However, this does not exclude the possibility of spending extra—if your budget allows, and if it doesn’t interfere with your essential expenses, spend away!
MAKE A SHOPPING LIST AND FOLLOW IT
It’s easy to be swept into a spending spree during the holiday season, which is why a pre-set budget is crucial. To help manage your expenses, create a list of the people you’ll be buying gifts for and indicate the maximum amount you plan to spend per person.
The earlier you do this, the better since it allows you to start your holiday shopping early. This will avoid surprise budget discrepancies in November, and also spreads the financial load over a longer period, making it less strenuous.
TAKE ADVANTAGE OF EARLY DISCOUNTS
Instead of waiting for traditional seasonal deals around events such as Black Friday and Cyber Monday, consider shopping during regular sales offered by retailers throughout the year. Early-season sales often provide reasonably-priced items, enabling you to save money, and also avoid the last-minute holiday shopping rush.
LOOK FOR THE BEST DEALS
To get the most value out of your shopping, hunt for sales, discounts, and promotional offers on your holiday purchases. Plan your shopping during sales events and take advantage of price comparison tools on various apps and websites. Pay attention to the enticing deals expected between Black Friday and Cyber Monday, and make sure to compare prices across online and physical retailers.
OPT FOR LESS TRADITIONAL GIFTS
Rather than buying expensive presents, think about giving homemade gifts, experiences, or charitable donations. Time spent with loved ones, especially those living far away, can be a priceless and heartwarming gift.
SAVE ON WRAPPING PAPER AND DECORATIONS
Americans reportedly spend around $3.2 billion every year on wrapping paper alone, according to Hallmark. Save money by making your own decorations and gift wraps. This approach is not just economical but can be a fun and festive project, too.
RECYCLE, REDUCE, AND REUSE
Gifts with excessive packaging create more waste and may cost you extra. Consider giving electronic gifts like concert tickets, gift certificates, or products with minimal packaging. Using recycled-content greeting cards can reduce the need for new paper during the holiday season.
Buy gifts that are eco-friendly and reuse materials, such as a stainless-steel water bottle or a solar-powered phone charger. Homemade baked goods are another great option, and don’t forget to recycle what you can—cardboard boxes, gift boxes, electronics, and Christmas trees.
BOTTOM LINE
Setting financial boundaries during the holiday season allows you to enjoy the festive period without compromising your financial health. It ensures you avoid overspending – which is often associated with the holiday season – and alleviates the financial stress, often a common issue for many during this period. It also prevents the dreaded post-holiday debt caused by overspending and helps guard against impulsive, regrettable purchases, which can deter you from achieving other financial goals.
