The holiday season is a joyous time of year, a season of gift-giving and, uh-oh, spending. To avoid being overwhelmed in 2019 with oversized bills and monthly payments, set a budget and stick to it.
It sounds tiresome, daunting, and boring, but taking time now to create a holiday budget will save lots of cash, time, and post-holiday stress. Here are a few things to make sure you stay on track:
- Make a list
Sit and brainstorm. Come up with a list of gifts and other items you’ll need for the holidays. Include everything down to the smallest gift or item. Once you’ve created a basic list, go over last year’s holiday gift and spending lists, as well as credit card bills and bank statements to see if you’ve missed anything. A densely detailed list will translate into maximum control and minimum anxiety.
- Create a budget
Small expenses can pile up faster than bedroom clothes. Keep an eye on them. Once you have your list, estimate the cost of each item. You may be tempted to lowball, but it’s much better to overestimate and give yourself some leeway. Don’t wait until you’re in the store to realize that most things cost twice as much as you anticipated.
Now compare your holiday budget to your fixed monthly budget. If the holiday budget is higher, you can either reduce your holiday obligations or find a temporary side hustle.
- Shop early in advance
The time you choose to shop is as crucial as your list and budget. Most retail stores offer sizeable discounts a week or two before holiday shopping season begins. As a general rule, even in Canada, the best shopping discounts surface immediately after the US Thanksgiving holiday.
Throughout the holidays, retailers swamp consumers with marketing gimmicks. Your list, budget, and early shopping mean you’ll be far less tempted by classic holiday marketing scheme. These are ultimate antidotes for impulse buying, allowing you to purchase truly meaningful gifts for your friends and loved ones. Being caught in the last minute commotion of the holiday season causes impulse buying of gifts that are more likely to be returned.
- Use browser extensions and shopping apps
We all want the best deals but don’t have the time to go from one store to another just to compare prices. As an alternative, sign up on sites like Ebates, ShopSavvy, or Honey to find the best deals. With some of these apps you can shop as you normally would via the web and automatically receive rebates on the items you purchase. Other apps allow you to find the best prices online or locally simply by scanning the barcode of a particular product.
- Sign up for alerts
Have you decided which preferred stores you are going to shop at? If you have, sign up for coupon alerts before you shop. For stores with no web presence, sites like Offers.com and Rather-be-shopping.com notify you when your retailers start offering rebates and coupons. Or you can sign up for the store’s email list. Most stores offer first-time subscriber discounts.
- Use a rewards credit card
Last but by no means least, use credit cards that offer rewards. Check whether your current credit card offers cashback points and rewards. For instance, some cards offer cashback if you shop at certain stores, online retailers, restaurants, hotels, gas stations, or grocery stores.
If you are not currently saving for a big purchase and have a good credit score, you might consider a new credit card. Some credit card issuers offer signup bonuses and other incentives which can translate into meaningful cash value.