Christmas is a season when we tend to spend a lot of money, so taking care of your spending habit will be a wise decision. You can find out how to manage Christmas spending below:
1. Create and share a budget
When it comes to holiday budgets, you have two common approaches to consider. According to experts, the first is setting a cap on how much you are going to spend. You can take for example, $200. The other approach is allocating a certain amount for each recipient, such as spending $100 per person. Even though you technically have a budget, and that is better than careless spending, there are a couple of problems.
For beginners, you don’t have much wiggle room when staying within a specific amount. For example, you could find the perfect gift but cannot buy it because it costs more than you are supposed to spend. The other issue is that, there is more to your holiday spending than just presents.
If, for any reason you don’t take this into account, your budget can become drained quickly.
Besides those concerns, you can create a budget however you want. Basing a budget on wants and not needs could be more effective in the long run. It would also help to share your budget with friends and family. If everyone you know is aware that you are being money conscious, they may work with you, instead of thinking that you are a cheapskate.
2. Make a list and check it twice
After you have created your budget, make a list of all the people that you want to buy presents for, then go over that list and come up with a ballpark figure on how much you are going to spend on each person. Remember that you should not get too hung-up on the price. You may spend less on some people and a little more on others. In the end, you may stay within your budget. This list is only to guide in making sure that you don’t go overboard and aren’t impulsively purchasing gifts for everyone that you know.
3. Keep Track of Your Spending
Your budget and lists can only go so far if you aren’t tracking your spending. One way to track your spending is to record the amount of money that you want to spend on each person and the actual amount you spent. It is a simple method to keep your spending in check.
4. Avoid buying holiday gifts on credit
Save money this holiday season by spending only what you have in your bank account. This means not using credit to purchase gifts. Buying gifts on credit puts a strain on your finances, such that even when the holiday is over, you find yourself still paying for some of the gifts you bought. If for whatever reason, you don’t have much to spend during the holiday, it is better to cut your coat according to your cloth.
5. Master the ‘10-second’ rule
Whenever you are in a store and you pick up an item, hold it for ten seconds. During those ten seconds, ask yourself if you really need it and also if that money wouldn’t be better used somewhere else. You will almost always find yourself putting that unnecessary item back on the shelf and walking away, quite proud that you did not waste your money on something so unnecessary.
This is especially effective for smaller items. Because they are so inexpensive, it is easy to get carried away and spend more than you should.
6. Use Cash
Even after creating a budget and being more money conscious, it is still easy to overspend during the holidays. That is when you should consider using paper over e-cash. Set a limit and take out that amount from your bank. When the cash is spent, so is your holiday spending. There are some other perks of using cash as well. The first is that you don’t have to pay interest or other sundry charges.
The other is that you have more bargaining power. For certain merchants, such as a salesperson, cash tells them that you are ready to make a purchase and they will gladly offer you a discount.
7. DIY or buy slightly used gifts
If money is tight or you are on a limited budget, then consider making your own presents, or used gifts. DIY could be something like baked goods for your friends, family and neighbours. Plus, if you have children, it is a great activity to do with them during the holidays.
Used presents are a great option if you have people on your list who are into vintage products.
8. Procrastinate
Procrastination doesn’t work for everything. For instance, waiting to buy plane tickets at the last minutes will typically end-up costing you more. However, if you wait to make certain purchases, you can save money because you will find a more favourable price if you browse or shop some more.
9. Avoid Window Shopping
Always have a plan when you shop. Have your lists ready so that you know who you are purchasing gifts for and an estimate on how much you are going to spend. When you are done with your shopping, don’t visit online stores or the mall to see what else is out there. There is no need to. You already did your holiday shopping for the year. By window-shopping, you would definitely find reasons to spend more.
Christmas season will forever remain important period to many people but remember to spend wisely so that you will still be left with some money to pay bills after the season. You are better informed on how to manage your Christmas spending now.
