PWC expects that American consumers will be spending 7% more this holiday season compared to last year, equating to roughly $1,530 per person on gifts, travel, and entertainment. Around 40% of consumers are expected to increase their spending from the previous year. With rising costs, holiday expenses can be tough on both wallets and emotions. Creating a holiday budget can be challenging, especially when loved ones may not share your financial habits. Nevertheless, if you’re excited about the holidays, here’s a plan to enjoy it without financial stress. Here are seven rules to help you maximize your financial capabilities for the holidays.
1. **Set Your Holiday Budget**
Decide how much you can spend on holiday expenses before you start shopping. Look at your financial situation and set a budget that you can afford. Make sure that the money for gifts doesn’t interfere with paying your regular bills. If you want to spend more, try saving extra cash that won’t affect your monthly rent so that you stay financially stable.
2. **Make a List and Stick to It**
To avoid overspending, it’s essential to stick to a budget, especially during the holiday season when gift buying is common. List out the main people you want to give gifts to and how much you plan to spend on each one. By making your list early, you can start buying gifts gradually, which helps prevent a last-minute financial crunch.
3. **Take Advantage of Early Sales**
Don’t wait for big sales events like Black Friday and Cyber Monday. Many top sellers reduce prices well before these dates. Shopping during these off-peak times can help you get the items you want at lower prices and avoid the rush later in the season.
4. **Compare Prices for the Best Deals**
To get the most out of your holiday shopping, keep an eye out for sales, discounts, and promotions. Time your shopping to coincide with these events and use apps or websites to compare prices. Some online retailers might offer better deals than brick-and-mortar stores.
5. **Think Outside the Box for Gifts**
Consider more affordable options such as handmade gifts, experiences, or charitable donations instead of expensive presents. Giving your time can be very meaningful, especially for distant loved ones who might appreciate a visit from you.
6. **Make Your Own Decorations and Wrapping**
Americans spend roughly $3.2 billion on gift wrapping annually. Save money by creating your own decorations and gift wrappers. It can be a fun holiday activity and will likely cost less than buying expensive materials.
7. **Embrace Recycling and Reuse**
Choose gifts that are durable and environmentally friendly to cut down on waste and expenses. Look for items with minimal packaging or those that help the environment, like a reusable water bottle, reusable grocery bag, solar-powered phone charger, or toys made from recycled materials. Homemade edible gifts can also be a wonderful option. Reuse packaging materials whenever you can.
**Conclusion**
Setting financial boundaries for the holiday season is a smart way to manage your money. This strategy allows you to enjoy the festivities while maintaining your financial health and fostering a positive relationship with your finances. By following these guidelines, you can avoid overspending, reduce financial stress and post-holiday debt, and steer clear of impulsive purchases, all while working towards your long-term financial goals.