Health talk
9 Best Ways to Save Money During the Holiday Season
 

Before you hit the mall or organize a big party, it can help to have a comprehensive plan in place so you know exactly where your money is going this holiday season – that way, you can ring in the new year with celebration rather than panic. Here are several ways to keep your spending under control this December.

1. Make a Budget

There are a couple different ways to set a holiday budget. You might want to establish a general spending cap, or try allocating a specific amount to each person on your gift list. Be aware, though, that while making a holiday budget is great, it can go sour in one of two ways:
  • Setting a Budget That’s Too Tight. While setting a tight budget always starts with good intentions, an unrealistic one can do more harm than good. To prevent this from happening, look over your numbers. Don’t just pick numbers out of thin air – really think things over to ensure that you make the right decisions.
  • Forgetting the Little Things. If possible, add some money into your budget for unexpected costs so you’re not left scratching your head.
2. Track Your Spending

  • Keep a separate Christmas fund in a dedicated bank account. This makes it easier to separate holiday spending from regular, day-to-day expenses.
  • Spreadsheets are also an excellent and accurate way to track your holiday expenditures. By establishing a budget and entering your real expenses, you can easily keep yourself on track. Just be sure to remain diligent.
3. Cut Back on Extras

Getting lattes piled sky-high with whipped cream, splurging on a pair of shoes for yourself, paying for a photo with Santa – we’re all guilty of indulging a little more than we should simply because it’s the holiday season. However, you can’t get stuck in a trap where constant spending on “extras” eats into your budget. Cutting back on those extras can have a big impact on your bottom line. Before you splurge on a little treat or “extra” for yourself, be sure it’s really worth the price.
4. Use the “Secret Santa” Method

Instead of buying for each member of the family or even pulling names out of a hat, funnel your resources into a Secret Santa experience by choosing to purchase gifts for anonymous beneficiaries (e.g. orphanage, home for the aged, etc.). Not only does a Secret Santa experience help relieve some of the stress and financial burden of exchanging gifts with every member of my family, it gives us a chance to talk about the importance of service and giving during the holidays. It would be great for the kids to get a break from the “gimmes” and get to focus on someone less fortunate.

Funneling what you would have spent on family gifts to those in need is a great way to give back, have a charitable experience with your loved ones, and relieve holiday stress.
5. Choose Cheaper Traditions

While traditions are important and admirable, they don’t have to be expensive to be memorable. In fact, you might find that your kids prefer the cheap stuff to the grander gestures. So many activities and traditions are inexpensive, or even free – you just have to know where to look. By making cheaper events and traditions part of your celebration, you can save money without skimping on the festivities and memories.

Here are some of my favorite cheap activities:
  • Touring neighborhood Christmas lights
  • Watching a movie with hot chocolate at home
  • Seeing Santa at the mall
  • Making Christmas crafts
  • Baking together
  • Reading favorite Christmas stories
  • Seeing a high school production, such as a play or choir performance
  • Caroling
Teach your kids that traditions aren’t about what you spend, but the time you spend together.
6. Embrace Potluck

If you’re hosting an event, embrace the idea of potluck assignments. Let everyone know you’re going to make the main dish, but that you’d appreciate help on sides, appetizers, desserts, and drinks. Send out an email a few weeks in advance letting everyone know what their assignments are to ensure you don’t end up with five vegetable trays and no dessert.
7. Take Care Around Sales

Holiday sales can be an epic opportunity to save money – but be careful. Not all deals are created equal, and some may not even be truly discounted, as some stores keep prices the same but simply mark items with a “sale” sign. Always compare shop before you purchase an item during a sale.

Of course, you never save money by spending, no matter how significant the discount. Sales are great, but they don’t mean much if the money isn’t in your budget. If necessary, bring a printout of your budget so you can check your spending in real-time and avoid being swayed by a screaming deal.
8. Know When to Stop

When your list is finished and you’ve checked it twice, it’s time to stop shopping. Know when you’re finished, and avoid stopping by the mall “just to see what they have” – this can lead to making poorly planned purchases and blowing your budget.
9. Get a Head Start

The period right after the holidays is the perfect time to check over your budget and make plans for the new year. How did you do? Did you stay within budget? Were there places you could have cut back?

This is also the time to start planning a credit card payoff strategy if you used plastic to finance your festivities. In a perfect world, you wouldn’t have put anything on your credit card that you couldn’t pay off in a month, but if you went overboard, commit to a payment plan that eliminates your balances within the next three or four months.

If you’re really savvy and have the storage, the days following Christmas are also ideal for getting a jump-start on purchasing decor and wrapping goods for next year. Of course, that’s only if you’ve budgeted accordingly.