Anticipations indicate that U.S. shoppers will shell out around $1,530 for gifts, travel, and entertainment over the holiday season, as per PWC. This figure represents a 7% increase from 2022, with 40% of customers expected to exceed the previous year’s spending. Notwithstanding the mounting costs of nearly everything, finding a suitable holiday budget can be daunting, more so when your financial approach diverges from your loved ones.
So, if you’re a holiday enthusiast like me hoping to enjoy the festive season without straining your finances, here are seven measures to establish a path to financial accomplishment.
SET REALISTIC HOLIDAY BUDGETS
Before leaping into the holiday shopping frenzy, take the time to outline a definite budget. Evaluate your finances to ensure that your spending aligns with your affordability. Money expended on gifts should come from excess funds that aren’t related to bill payments. Nonetheless, it’s entirely reasonable to set aside a small portion of your income for holiday spending, provided it doesn’t interfere with essential expenses.
COMPILE AND ADHERE TO A LIST
Prevent overspending by generating a list of those you plan to gift this season, including how much you’re willing to spend on each individual. Initiating this process in advance allows for scattered purchasing, resulting in less financial burden as the holiday season progresses.
OPT FOR EARLY-SEASON SALES
Resist waiting for common seasonal discounts such as Black Friday and Cyber Monday. Instead, seize the recurrent deals from popular retailers. By engaging in these sales, not only do you secure valuable savings, but you can also smoothly navigate through the holiday shopping madness.
EXPLORE FOR THE BEST BARGAINS
Always hunt for sales, promotional offers, and discounts. Enhance your shopping experience by using price comparison apps or websites. Remember to keep in mind the expected price reductions during the traditional seasonal sales and consider online merchants with better proposals.
EXPLORE NON-TRADITIONAL GIFT OPTIONS
Embrace options like home-crafted gifts, experiences or charity donations as substitutes for expensive presents. The most cherished presents may simply be your presence, especially for loved ones residing at a distance.
DIY DECORATIONS AND GIFT WRAPPING
Create your own festive decorations and gift wrapping to save money. This DIY approach is not only cost-effective but can also be a fun-filled activity.
ADOPT ENVIRONMENTALLY-FRIENDLY PRACTICES
Avoid purchasing short-lived, low-quality items. Opt for gifts that come with minimal packaging, such as concert tickets or gift vouchers. Give eco-friendly presents such as reusable shopping bags or toys made of recycled materials. Don’t forget to recycle packaging materials where possible.
IN SUMMARY
Establishing a financial plan for the holidays is a proactive way to manage your money without compromising your enjoyment or putting a dent in your wallet. This approach prevents you from overspending on gifts, decorations, and entertainment. It also helps you face the post-holiday financial strain and prevent credit card debt, enabling you to pursue other financial goals. Credit: SmartAsset.com
