Anticipations are high that American consumers will shell out approximately $1,530 on presents, travel, and enjoyment during the upcoming festive season, indicating a 7% surge from 2022, according to PWC. Estimated to outdo their previous year’s spending are a considerable 40% of buyers. Amid rising living costs, the holiday season often leaves individuals feeling not just emotionally exhausted but financially drained as well. This is particularly challenging for those seeking to maintain a holiday budget, more so when friends and family do not share similar spending or financial views during the season.
If you’re known to be a holiday enthusiast and are keen on making the most of the season without emptying your wallet, here are seven practical tips to foster financial prosperity.
**Setting your holiday budget**
Start by planning a rigorous budget prior to embarking on your holiday shopping. Review your finances and settle on an amount you can confidently dispense. Any sum allocated towards gifts should not interfere with bill payments. If you wish to expand your budget, ensure you’re not diverting essential funds such as rent.
**Creating a shopping list**
Holiday cheer sometimes leads to overspending on gifts, thus pre-planning is crucial. To abide by your budget, make a list of recipients along with the estimated amount to be spent on each. Getting an early head start on this can allow you to buy items gradually without significant financial impact later.
**Shopping early**
Avoid waiting for regular sales events and grab early-season bargains instead. This could be beneficial in landing attractive deals on valuable items you’ve been wanting. Preemptive shopping also helps you evade the holiday rush.
**Seeking the best bargains**
Search for ongoing sales, deals, and offers to get the most from your holiday shopping. Synchronize with sales events and use price comparison apps or sites. Be on the lookout for potentially better online deals during the prime discounting period around Black Friday and Cyber Monday.
**Exploring non-traditional gifts**
Homemade gifts, experiences, and charitable donations are excellent low-cost alternatives. Also, valuing the gift of time, like visiting distant relatives, can be a significant and cost-effective gesture.
**Creating homemade decorations and wrapping**
Purchasing gift wrap alone could be financially draining. With Americans spending around $3.2 billion annually on gift wrapping as per Hallmark’s research, homemade wrappings and decorations can be a money-saving festive activity.
**Practicing sustainability**
Opt for affordable, durable items that contribute less to waste. Go for gifts that use minimal packaging. Consider eco-friendly gifts like stainless steel water bottles, reusable shopping bags, and solar-powered phone chargers. Don’t forget the undeniable appeal of homemade baked goods and recycle as much as you can.
**In conclusion**
Strategically setting financial limits during the holidays fosters a healthier relationship with money without compromising your festivities. This approach helps avert overspending which leads to financial stress and potential debt. It minimizes financial strain, allowing you to savor the celebrations without money-induced worry. It curbs the tendency towards post-holiday debts and impulse buying, giving you better control over your finances and goals.
