It’s that time of year again – the holidays are on the horizon, and with that comes the frenzy of gift-giving season. This can be a particularly stressful time for some, especially those looking to be careful with their spending. Even for those who aren’t on a budget, it’s always a good idea to plan out your holiday shopping and manage expenses effectively.
Start Budgeting and Planning Ahead
Creating a holiday budget is one of the most effective ways to stay on top of spending, which includes both essential and non-essential purchases. Firstly, start by listing out all your essential items and be as specific as possible. Then determine what you can spend on any non-essentials or last-minute, unforeseen purchases. All of these items should be divvied up and fall within your pre-determined budget limit.
There are several ways you can get a jump start on your holiday shopping, spending, and budgeting. First, set yourself a maximum spending limit. From there, it’s helpful to jot down a list of all the family, friends, colleagues, and others you intend to purchase gifts for, then assign each of them an appropriate dollar amount that each add up to your total budget limit. Be mindful to account for any holiday expenses you will incur outside of gifts as well, such as decorations, traveling, or food and beverages for holiday get-togethers.
Planning ahead also applies to the shopping itself. Waiting until the last minute forces you to make hasty purchases, which can make it much easier to go over budget and will in turn add unnecessary stress to your plate. Be sure to stay on top of your account statements and double check that you’ve stayed within budget and you’re still on track to maintain your spending limit.
Utilize Online Shopping
Not only can you find an extensive assortment of gifts online that can be ordered straight to your door but shopping online also allows you to compare prices. If you think you’ve found the perfect gift, you may be able to find it online or at a different store for a cheaper price.
During the holidays, special deals and sales are always evolving. And while most are aware of the craze of “shopping holidays” like Black Friday and Cyber Monday, most stores offer deals all season long that will save you just as much as a one-day special. When you shop online, you can be on the lookout for sales on different websites as well as companies that are offering in-store specials.
Additionally, shopping online allows you to use tools that automatically identify whether there are any coupons available for the site you are shopping on. Some examples are browser add-ons like Honey, Shopper.com, and Capital One Shopping.
Limit Your Credit Card Spending
Credit cards can be an easy way to cover holiday expenses, but it can also be easy to get carried away, especially with last-minute purchases. It’s important to be wary of approaching your credit limit too quickly as well as being aware of your debt-to-credit ratio. Lenders typically prefer a debt-to-credit ratio of 30% or less of your credit limit and going above that could negatively impact your credit score.
Plan Holiday Travel Early
The closer you get to the holidays, the more expensive it becomes to make travel purchases such as transportation and accommodations. The holidays are already fast approaching, so it’s best to act fast on any travel plans, whether they be for leisure, business, or visiting relatives.
Celebrate With Confidence!
While there can be a lot of moving parts to holiday shopping, spending, and budgeting – and it can be overwhelming – you don’t have to drain your bank account to find the perfect gifts. We always recommend setting aside money year-round to account for holiday shopping, especially if you know you will have a few pricier gifts to purchase, to ensure you won’t deplete all your hard-earned money in the span of one or two months.
As the holidays are quickly approaching for this year, using the tools above will help you maintain a budget that is comfortable for you and will keep the stress away. For more money managing information, reach out to one of our team members at Republic Bank by calling 800-526-9127 or browse our other posts!
