Americans are predicted to spend $1,530 on holiday gift-giving, travelling and entertainment this festive season, marking a 7 percent increase from 2022, as per PWC. Interestingly, a staggering 40 percent of these consumers aim to spend more than they did last year.
In light of the escalating cost of essentials, managing your expenses while planning holiday celebrations may pose as an intimidating task, more so, if your loved ones aren’t on the same wavelength about festive finances. So, if you’re stoked about the forthcoming holidays and want to have a blast without straining your budget, here are seven tips to set you on the path of fiscal triumph.
ESTABLISH CONCRETE SPENDING BOUNDARIES
Plan a well-defined budget before embarking on your holiday shopping escapade. Survey your personal finances to decide on a sum you can afford to spend without landing in a financial crunch.
Always remember, the money you allocate for gifts should be the extra cash that’s left after paying your bills. However, don’t shy away from spending a bit extra, as long as it doesn’t infringe upon your foundational expenditures such as rent.
CREATE A DETAILED LIST AND ADHERE TO IT
Gift shopping can be trickier than it seems, given the festive ambiance and the tempting discounts. Thus, it’s crucial to draft a budget in advance. To adhere to your budget, jot down your major gift recipients and specify how much you’d like to spend on each individual.
Beginning your shopping spree early not only eases the financial burden closer to the day but also helps align your expected expenditures with the reality of your budget.
EXPLOIT THE EARLY DISCOUNTS
Forego waiting till the conventional seasonal sales burst onto the scene, such as Black Friday or Cyber Monday. Popular outlets offer discounts quite frequently.
Early bird sales often provide incredible deals on big-ticket items and help you sidestep the bustling holiday rush later in the festive season.
HUNT FOR THE MOST ENVIABLE BARGAINS
Search for enticing sales, discounts, and promotional offers to score the best deals on your holiday shopping. Align your shopping schedule with sales events and use price comparison apps or websites to fetch the best offers.
Stores traditionally slash prices between Black Friday and Cyber Monday presenting some of the most attractive deals of the year. So, don’t forget to compare price points and look beyond physical stores to online retailers that may present more affordable prices.
DEVISE ALTERNATIVES TO CONVENTIONAL GIFTS
Rather than splurging on pricey gifts, consider cheaper alternatives such as DIY gifts, experiential gifting, or making donations on someone’s behalf. Taking time out to spend with far-off loved ones might be the most priceless gift.
DO-IT-YOURSELF DECORATIONS AND GIFT WRAPPING
Americans reportedly spend a staggering $3.2 billion each year on gift wrap alone, according to Hallmark research. Leverage your creativity to design your own festive decorations and gift wrap to save a few extra bucks.
RECYCLE AND CUT BACK ON WASTE
Opting for cheaper, less durable items often results in excess waste and unnecessary expenditure. Go green this season by choosing environmentally friendly gifts that don’t necessitate extravagant packaging, such as gift cards or concert tickets.
In essence, creating financial benchmarks for the holidays allows you to relish the festive season without jeopardizing your monetary stability, thereby fostering a healthier, sustainable relationship with money:
– It curtails overspending, a common dilemma during the festive season due to the rise in expenditure towards gifts, decor, travel, and entertainment.
– It alleviates financial stress, a perennial issue during and post-holidays.
– It mitigates post-holiday debt accrued due to unchecked spending during the festive period.
– Without fiscal boundaries, the chance of unplanned and regrettable purchases increases, thwarting progress towards other financial objectives.
