The Christmas and Hanukkah holidays are three months away, so you might be wondering…do we really need to talk about this right now? If you’re on a budget, like most of us are, the answer is YES. With three months to go, you may feel like you have all the time in the world to prepare, but time can fly by in the blink of an eye, making this the perfect time to make a plan.
Here are some easy steps to ensure you have the money you’ll need to shop ‘til you drop (and the tools to shop smart) this upcoming holiday season.
1. Get Organized
Make a list – yes, a real list that’s not in your head! I like to keep this list somewhere on my phone, like in the notes app or a Google form in Google Drive, so I always have it with me.
List the people you want to buy for and how much you plan to spend per person. Then, tally the list to make sure you can afford all these wonderful gifts. If not, consider making tweaks, such as reducing the spend-per-person or opting for a card instead of a gift for specific recipients.
Also, use this list to record gift ideas, and check off names once a gift is purchased.
2. Sock it Away
Take a look at your savings and then calculate how much you need to save each week to reach your total gift list tally. Make sure you have enough wiggle room in your paycheck to do this!
Ideally, set up an auto withdrawal into your savings account and don’t touch your savings account until you are ready to start shopping.
3. Tighten That Belt
If you can’t reach your desired number with your existing savings and funds from your paycheck, another solution is to cut back a bit on spending temporarily. Here are some easy (ish) ones:
– DIY: What are you paying someone else for that you could do yourself? For my husband and me, that’s working in our yard. Sure, we’d rather have someone else do it, but we can save a couple hundred dollars doing it ourselves. Other ideas are your monthly mani/pedi, car wash, and house cleaning. Each time you don’t spend that money, add it to your holiday fund.
– Selfish Shopping Moratorium: Take a break from buying for yourself. Yes, it hurts, but it’s for a good cause.
– Sell It: If you can’t bear to deny yourself anything, try selling things you no longer want on a platform like Amazon Marketplace, Craigslist, or eBay.
4. Change Traditions
If you’re still struggling to reach your target number, maybe it’s time to evaluate your Holiday spending. Are you stuck in traditions that are causing you financial strain, like buying gifts for every co-worker or every member of the family?
If either or both are the case, consider trying something new, such as a White Elephant, Yankee Swap, or a name draw at work. These gift exchanges can work with the family, too.
Another family solution is that everyone agrees to only buy for the kids and the elders.
The holidays are great and all, but it’s simply not necessary to go into debt because of them.
5. Pay the Right Way
Shop with the credit card that offers the best benefits, such as points, miles, or exclusive discounts.
Or, if you have a store card, remember to use it when you shop with that retailer to take full advantage of the benefits.
If you’re carrying debt, try to avoid bringing more debt into the new year. Instead of using credit cards, consider using your debit card, paying in cash, or using a cash app like PayPal or Venmo.
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