For many, the holiday season is regarded as the most wonderful time of the year. However, after the cookies and eggnog are gone, the wrapping paper’s been tossed and the bills are all due, it often feels a bit more like the most expensive time of the year. And it doesn’t help that it can take several months afterward trying to recoup the cost.
But don’t let a little budget talk get your stockings in a bunch. Here are 8 helpful tips to avoid overspending this holiday season.
1. Set Holiday Spending Limits — And Stick to Them
Setting a budget is easily one of the most vital things you can do to keep from overspending this holiday season, especially when you consider that the average consumer plans to shell out a record $902 across gifts, food, decorations and other seasonal items.
When creating your budget, be sure to look through your finances and decide how much you can afford to comfortably spend on everything from gifts to parties and meals. You might also consider looking at what you spent last year for reference. How did last year’s holiday spending affect your overall budget? Were you paying off bills for months afterward?
Your goal isn’t just to avoid overspending during the holidays, but to spend responsibly for the year ahead as well.
2. Make A Holiday Gift List — And Check It Twice
Planning for what you need is one of the best ways to save on your holiday shopping. After all, if you head to the store looking for gift ideas, you’re likely to spend more. But if you brainstorm a few ideas before you head out, you’ll at least narrow down what you’re after, as well as give yourself time to price shop, if needed.
It also doesn’t hurt to make a list of everyone you plan on giving a gift, paired with a dollar amount per person. Setting price limits will also help you keep your holiday budget in check.
3. Redeem Your Credit Card Rewards — And Cash In
Do you have a credit card that offers redeemable rewards? If so, what better time than the holidays to put those rewards to use? Whether your card offers cash back, bonus points or special deals at certain stores, the holidays are a great time to use those rewards to purchase gifts, travel, and more. Not only will you save money by using what you’ve already earned, but it’ll also help you avoid racking up more credit debt in the process.
4. Consider Homemade Gifts — And Skip the Store
When you think of gift giving, it’s easy to conjure up images of crowded department stores, handfuls of packages and a wallet full of receipts. However, if saving yourself a little money (and a lot of stress) is at the top of your list this year, you might consider skipping the hustle and bustle of holiday shopping by making homemade presents at the kitchen table instead. And if crafting isn’t really your thing, don’t rule out the opportunity to give of your time in service. Going homemade might not work for everyone on your list, but it’s a great option to keep things affordable.
5. Be Proactive — And Plan Ahead
Whether you’ve been waiting for that holiday bonus check to arrive or you simply let time get away from you, you may be scrambling to do a little holiday shopping at the last minute. Not only does this make a stressful time of year even more stressful, but it’s also a surefire way to overspend. Instead, try to proactively make your gift lists ahead of time, and then schedule time to get out and shop. A little thoughtful planning can lead to less stress and unnecessary expense.
6. Price Check with Your Phone — And Shop Around
Despite the best intentions, stumbling upon that perfect gift can have an uncanny way of spoiling your spending plans. If you happen to find a gift that’s over your allotted budget, or if you’re simply interested in making sure you’re getting the best deal possible, go online or use your phone to see if a better price can be found elsewhere. There are several websites and apps like Google Shopping, ShopSavvy, and BuyVia that can help you quickly compare prices on the go.
7. Don’t Limit Yourself to One-Day Promotions — And Miss Other Deals
It’s become big business for shoppers to wait for Black Friday or Cyber Monday to do all their holiday shopping. And while businesses claim to offer “doorbuster” deals that can’t be found any other day, the fact of the matter is there doesn’t tend to be a huge difference, if any, in markdowns between these advertised one-day sales and regular holiday sales. In other words, rather than focus all your attention on day-specific event sales, look for deals every day.
8. Save Up for Big Items — And Save Time
One of the great things about the holiday season is that we have all year to plan for it. With a little forward planning, you can put aside money throughout the year for big-ticket gift, thereby helping prevent you from depleting your bank accounts or going into debt during the holiday season. With the help of some easy online banking features — like creating a holiday savings account or setting up automatic transfers — you can save some money for future gift giving. These features can also help you save some time on how you manage your money as well.
The Holidays Are Your Time to Shine
Zions Bank can help with your holiday budgeting and spending thanks to helpful tools like budgeting calculators as well as credit cards with great benefits, including the Agility Cash Visa® credit card and the Vivid Rewards Visa® credit card. Visit a local Zions Bank branch to speak with a banker today.
