The festive season is undeniably a period I greatly look forward to every year. However, I also realize that it can lead to significant financial strain due to excessive shopping, decorating, events, and other added expenses. Roughly, an average home spends nearly $1,000 on Christmas each year. This is a substantial amount and I confess I have spent that much in a single year myself. Excessive holiday expenditure can bring about stress and a sense of being overwhelmed. Consequently, one may resort to working overtime for extra income or acquiring debt by charging these expenses to a credit card, which only adds to your future financial obligations. Therefore, I highly recommend saving money during this festive period. Below, I have shared five methods that I’m using to save money this festive season.
1. NO GIFT EXCHANGE WITH EXTENDED FAMILY
This year, my husband and I have chosen not to swap gifts with our extended family members. We are instead focusing on boosting our savings for the down payment on our anticipated home purchase next year, whilst still showing our affection in other ways, such as donating our time and skills. We will still attend festive gatherings and create memories, but will limit the exchange of gifts, thereby reducing the implication that everyone needs additional items. At our current stage, we have all we need, thus our main focus over the coming weeks is to cherish the moments spent with our family. This approach may not suit everyone, but ever since we pruned our gift list, I’ve noticed fewer stress signals. If I do purchase a gift for my mother or siblings, it is a choice made out of love and within my budget, not as an obligation due to commonly followed holiday traditions.
2. STAYING AT HOME MORE
Spending more time at home during the holiday season can contribute significantly to saving funds. If you manage to secure a few days off work, utilize it relaxingly at your own place, invite people over or spend it with family. Instead of spending a substantial amount on breakfast with Santa for the family or watching a pricey play, consider dividing your leisure time between enjoyable indoor and outdoor activities.
3. ADHERING TO MY HOLIDAY BUDGET
Another method I’m using to limit my expenditure is by adhering to my holiday budget. Each year, I start saving funds for the holidays early on by automatically transferring a part of my monthly income from my checking account to my savings account. To stick to this budget involves declining several offers, but it’s a much better option than falling into holiday debt.
4. UTILIZING REWARDS
Around the holiday season, I actively look forward to utilizing my credit card and loyalty rewards in order to save funds. If you own a rewards credit card, make sure to check if you’ve accrued any points or cash back that can be used for holiday bills.
5. CONSIDERING PRELOVED ITEMS
Lastly, I’ve considered purchasing gently used items, which has contributed to my savings this holiday season. In our recent experience with selling some of my son’s old toys that were in excellent condition on Facebook Marketplace, I’ve realized that procuring quality, gently used goods and electronics could make more sense than spending time in long queues and navigating crowded holiday traffic.
Hopefully, my methods may offer some insights into navigating your holiday shopping and saving money during this season.
