The holidays should be filled with peace and happiness, and surrounded by the ones you love the most — not stress. However, many folks become anxious during the holidays because they overextend themselves financially and stress about finding the “right” gifts. Approach this holiday season by being prepared and plan ahead.
Here are some helpful tips to make the season merry and bright for your loved ones…and your wallet!
Create a realistic holiday spending budget and stick to it.
Work with what you have available without going into debt to impress friends and family. You will want to factor in the cost of holiday gifts, cards, gift wrapping, shipping, stocking stuffers, etc.
Create a list of people you plan to purchase gifts for and set a limit for the amount you intent to spend on each person. Try to stick with immediate family and close friends. Neighbors and co-workers do not usually expect gifts. However, it is wise to purchase a few extra inexpensive gifts in the event you forget someone or get invited to a last-minute party. Fight the urge to treat yourself during holiday shopping. Stick to your list to stay within budget.
Plan ahead and keep an eye out for deals.
Lots of retailers offer great deals starting around Thanksgiving, especially on Black Friday. If you plan ahead and start your holiday shopping early, you can score some awesome gifts for a fraction of the cost. Compare prices online, look for sales, clip coupons or gather coupon codes. Take advantage of price matching, discounts (kama’aina, military, student, senior citizen, etc.) and free shipping.
Pay for gifts with cash or a debit card when possible.
Avoid using retail credit cards (ex: Macy’s, Target, etc.) with interest rates upwards of 20 percent. If you do use a credit card, look for one with a low interest rate and rewards or cash back. Be sure to pay your debt in full once you receive your monthly bill.
Don’t forget about low- or no-spend gifts.
Spread holiday cheer by volunteering for a good cause, and make memories with family and friends while giving back to the community. Planning a shared experience, like a movie night in or a picnic at the park, can be just as meaningful as a material gift. Homemade gifts can often be more meaningful than something store-bought, so get creative and give a personalized gift like a photo in a thrifted frame, or a home-baked treat!
Plan ahead for next holiday season by establishing a savings account that can serve as your holiday spending account that you regularly contribute to throughout the year. Automatically deposit money into this account all year while earning interest.
Keep these tips in mind to avoid overspending, and remember that the holidays are really about sharing love , whatever form that may be.
