12 Stress-Free Tips to Help You Save for the Holidays
Ah, the holidays — a time to be with family and friends and be thankful for everything in life. You’re excited about holiday treats, gift-giving, and celebrating in all the festivities.
But these celebrations don’t come cheap, and if you’re not careful, you could turn this holiday season into something that isn’t so cheerful or even something you might regret.
It’s all too easy to get caught up in the excitement and go wild on spending. I mean, look at Black Friday for crying out loud. “Deals” are now coming earlier than ever and creating absolute chaos. People have even been trampled to get a minor discount on things forgotten next month.
When did we lose sight of what’s really important during the holiday season? Things like giving back or spending quality time with loved ones.
Some people even go into debt over holiday spending! I don’t want that for you, and you don’t want that for you. To avoid this trap, it’s important to focus on ways to save for Christmas. With the right strategy, planning, and smart Christmas savings, you can save for holidays without going broke.
This is why I’ve put together a list of ways to help you manage your holiday spending, minus the stress.
1. Budget Early
This may seem over-the-top for some of you, but one of the best ways to reel in your Christmas spending is to start budgeting early in the year—and I’m talkin’ like January early.
Most people think they can put off budgeting until later because they believe they have their spending under control. But think about all the other holiday expenses besides gifts —food, decorations, events, and shows. These things add up and can derail your financial goals for the whole year in one swift move.
For example, if you set aside $100 monthly for the Christmas season, you would have roughly $1,200 by the time Christmas rolls around. On top of relieving some financial stress, it also gives you a clear picture of what you can afford to spend.
It could be a good idea to create a spreadsheet or use some type of budgeting app to track your savings and expenses. You could include categories like gifts, going out, and decorations, to name a few. Also, think about incorporating a little extra cash each month if you expect to buy larger gifts or host a holiday party.
Adding a Christmas budget to your monthly expenses will take a massive load off your shoulders because you will already have the money you planned for. Resist the temptation to dip into your Christmas savings for non-holiday expenses. Like I always say, fail to prepare, then prepare to fail.
2. Set Up a Separate Savings Account
Set up a separate savings account specifically for your holiday spending. Commit to saving a certain amount in the account or contribute when you have extra cash. Hell, throw in that bonus or overtime check into the account. By the time Christmas rolls around, you already have the funds to pay for everything.
On top of that, many savings accounts let you create separate savings goals within your primary account, making it easier to track your progress. This can be especially helpful for more visual people. Personally, I find it motivating to designate a portion of my savings solely for holiday expenses.
You can also automate your savings: Set up an automatic payday transfer to move a preset amount into your Christmas savings account. And don’t forget about high-yield savings accounts! Most of the time, they offer way better interest rates than traditional savings accounts. You could be earning money on your holiday savings!
To make sure you stick to your budget, try making it a rule that if you don’t have cash in the account, you can’t spend that money. This will make it harder to overspend so that you don’t add unnecessary financial stress to your life.
3. Track Your Spending
Just like tracking your regular spending, keeping tabs on your holiday expenses can show you exactly how much you spend. This awareness alone can help you dial back the spending and make more informed decisions.
Monitoring your purchases will give you a better idea of where you’re at with your Christmas budget. When you see those numbers, you’re more likely to stay mindful and stay away from overspending.
By actively tracking your holiday spending, you’ll be able to enjoy the holidays stress-free.
4. Shop Year-Round
Instead of cramming all your holiday shopping into one crazy month, keep an eye out for gift possibilities throughout the year. By breaking up the shopping, expenses are more manageable around the holiday season, and you already have the gifts purchased from earlier in the year.
Lots of gifts go on sale right after Christmas in January and February. This makes it an ideal time to score some great deals for the next holiday season. Not only will it save you money, but it will also save you the last-minute rush that leads to regret and overspending.
Tips to Shop Year-Round:
Create a Gift List: Keep a list of people you want to shop for. Write down gifts or list them in your Notes app when they come to mind.
Watch for Sales: Be on the lookout for sales throughout the year — not just during the holiday rush.
Purchase Off-Season: Buying seasonal gifts or decorations when they’re not in high demand can save boatloads.
Think about how much LESS stressed you’ll be knowing you already have your gifts sorted.
5. Give Fewer Gifts
Plain and Simple: Don’t give as many gifts. Christmas is about family, but somehow, the retail world has turned it into a billion-dollar industry.
If you want to give gifts this Christmas, save them for the people who matter most—like close family and friends. Communicate this to other people as well to set some expectations.
For example, this year, my husband and I decided not to do gifts for each other but to buy something we both wanted. So, we decided to go on a trip to Mexico instead. This way, we’re not stressed about what to get each other, and the money is going toward something we both love doing: traveling.
At this stage in my life, I don’t particularly enjoy receiving gifts as much because if it’s something I want, I’ll buy it. You could save hundreds during the Christmas season by giving fewer or more meaningful gifts.
6. Go in On A Group Gift
If you have siblings, this may be a familiar concept. But if not, buying a group gift can save you tons during the holiday season. Pooling your cash together can allow you to buy a nicer gift than you’d be able to afford on your own.
Tips for Organizing a Group Gift:
Discuss Ideas Together: Talk with other family members or friends about what to buy. Collaborating makes sure everyone is on the same page.
Set a Budget: You knew this was coming, but set a realistic budget to make sure everyone can chip in without feeling strapped for cash.
Plan Ahead: Plan well ahead of time. This will help make sure you have enough time to collect cash from everyone and make the purchase.
7. Stop Impulse Buying During Sales
News flash! There’s a reason so many sales happen around the holidays. These sales are specifically designed to entice you into spending. And not just holiday sales, any sales for that matter. How many times have you heard from a friend, “I got it on sale!” Only to realize they didn’t even need it in the first place?
These sales are NOT here to deliver the best value; they want your money. This is why making a list before you start shopping is helpful. Stick to your list! If anything from the list is on sale, that’s great, but if not, don’t worry — remember, you already saved for these purchases.
Tips to Avoid Impulse Buying:
Create a shopping list: Like I said, make a list and stay with it. This will keep you focused and less likely to get distracted by other items.
Take Your Time: Please, please, please don’t rush purchases because something is on sale. Give yourself time to think about whether you really need that thing.
Recognize Sale Tactics: Remember that holiday sales are created to lure you into spending. Not necessarily to deliver the best value. Learn to tell the difference between a “good deal” and a necessary purchase.
8. Say “No” to Random Gift Exchanges
It’s one thing if you do a gift exchange with your family, and it can be fun. But if you’re offered to participate in the unit’s holiday gift exchange, say no. Chances are you’re going to give or receive something junky, and you’re just gonna toss it either in the trash or the back of a cabinet, never to be seen again.
Tips to Avoid Unnecessary Gift Exchanges:
Assess the situation: Before participating in the random holiday gift exchange, decide if it adds value to your life and, better yet, aligns with your holiday budget.
Be Polite: Politely say “no” to avoid spending on these unwanted expenses. You can still express your appreciation for being included and nicely explain that you have other commitments this year.
Suggest Alternatives: You could try proposing an activity or gathering that doesn’t involve spending money on gifts.
9. Consider Homemade Gifts
This is one of the things I’m considering this year. Making homemade gifts can significantly reduce your expenses during the Christmas season. Things like homemade jam, cookies, cards, or marshmallows can go a long way in showing thoughtfulness.
Tips for Homemade Gifts:
Think Personal: Tailor the gift to the person’s interests and likes, like their favorite food or hobby.
Plan: Start early, especially for things that take time to prepare, like crafts or food items.
Let Them Know: Share your plans with your family and friends. It will set expectations and might inspire them to do the same kind of homemade gift.
10. Stick to Cash for Purchases
When making Christmas purchases, stick to using cash. Set aside a certain amount of money only for holiday spending. Similar to the Christmas savings account, you can’t spend the money on those holiday expenses if the cash isn’t there.
This is also a way to avoid using your credit card and possibly racking up credit card debt over Christmas shopping.
11. Look for Online Discount Codes
Take advantage of discount shopping codes and special offers. Some credit cards offer special rewards, cashback, or a considerable discount for purchases made with certain credit cards.
Doing this lets you get your shopping done and add some points to your loyalty programs or cashback.
Tips for Maximizing Discounts:
Research Before Buying: Before purchasing, spend a few minutes researching discount codes online. This way, you can make sure you’re getting the best deal.
Use Cashback Offers: Look for cashback offers through credit card programs or designated websites. These can help you earn money on your holiday purchases.
Combine Offers: Stack your discounts! Use a coupon with your credit card offer for even more holiday savings.
12. Set a Spending Limit and Follow It
No matter what method you use to manage your Christmas savings, you should set a spending limit and follow it. This rule applies to all other strategies listed above.
Setting a monetary limit is kinda like laying the groundwork for your holiday spending plan.
Why Setting a Holiday Spending Limit is So Important:
Prevents Overspending: A clear spending limit helps you stay within your budget, staying away from the temptation to splurge for the holidays.
Encourages Thoughtful Giving: With a set spending limit, you’ll be more thoughtful about your purchases. Putting meaningful gifts first.
Less Stress: Staying within your budget can help decrease your stress around the holidays, which can be the most stressful time of the year.
If you don’t set a spending limit, you won’t be successful using just one of the above methods, like using cash only, group gifts, or budgeting.
Final Thoughts on Ways to Save Money for Christmas
The holidays can truly be the most wonderful time of the year (haha-get it?), surrounded by friends and family. However, it shouldn’t come at the cost of going into debt over Christmas gifts.
By using these tips—setting a holiday spending limit, budgeting early in the year, or deciding to give fewer gifts—you can have a stress-free Christmas without breaking the bank. So, which strategy are you going to try this holiday season? Let me know in the comments! Happy holidays!
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