This coming holiday season, American shoppers are predicted to expend $1,530 for presents, travel, and entertainment, according to PWC’s estimates. This figure is a 7 percent increase compared to 2022’s spending. Approximately 40 percent of consumers project their expenses will be higher than the previous year.
Given the rising costs of virtually everything, budgeting for the holidays can be a formidable challenge – both emotionally and monetarily. Especially, if there’s a difference in financial perspectives or spending habits during holidays among your acquaintances and kin.
For holiday enthusiasts aiming to enjoy the festive period without straining their finances, here are seven guidelines for establishing financial freedom for the season.
1. DEFINE YOUR HOLIDAY BUDGET:
Before embarking on your holiday shopping, design a fixed spending plan, based on what you can afford. Your finances, not your bills, should dictate the feasible amount for gift expenses. Extra spending is possible, as long as you use available cash that doesn’t affect your rent payment.
2. DEVISE A PLAN AND ADHERE TO IT:
Holiday spirit can easily lead to excessive gift expenditure. Creating a budget and sticking to it is crucial. Listing your main recipients and allocating a specific amount for each can prevent overspending. The earlier you start purchasing gifts, the less intense the impact on your wallet.
3. CAPITALIZE ON EARLY SALES:
Avoid waiting for conventional seasonal sales. Most mainstream retailers offer sales and discounts year-round. Early-season sales often present impressive pricing for high-value items, and allow you to stay ahead of the holiday shopping frenzy.
4. SHOP SMARTLY:
Actively seek out the best deals, discounts, and sales for your holiday purchases, using price comparison apps and websites. Black Friday, Small Business Saturday, and Cyber Monday typically present the most budget-friendly deals, so plan accordingly.
5. CONTEMPLATE NON-TRADITIONAL GIFTS:
Expensive presents aren’t the only option. Consider unique alternatives such as DIY gifts, experiences, or donations. A personal visit could be the perfect gift for distant relatives and friends.
6. DIY YOUR HOLIDAY DECOR:
Switching to homemade decorations and gift wrap can save vast amounts of cash. With Americans spending roughly $3.2 billion annually on wrapping paper, according to Hallmark’s research, this unconventional initiative can yield substantial monetary benefits.
7. EMBRACE SUSTAINABILITY:
Choose long-lasting gifts over cheap, perishable ones. Opt for eco-friendly presents and reduce waste by recycling holiday items. Green gifts such as a stainless steel water bottle, reusable grocery bags, or solar-powered phone chargers are viable options.
In conclusion, setting financial limits during the festive season demonstrates proactive and sensible financial management. It prevents unnecessary spending, reduces monetary stress, circumvents post-holiday debt, and supports your ultimate financial aims. Preemptively planning your holiday budget guarantees you’ll relish the festive joy without compromising your financial health, according to SmartAsset.com.
