5 Ways to Get Your Pandemic Holiday Spending Under Control
This holiday season looks a bit different this year and is proving to provide more challenges in trying to save money than ever before.
While shopping for family and friends is made easy by most stores switching to online shopping this Black Friday, it is easier than ever to go over your initial spending budget.
“According to the National Retail Federation (NRF), in 2019, the average American expected to spend a total of $1,052 on gifts and other holiday-related items, such as decorations and food.”
It can be difficult to balance both your savings and make the most of this holiday season this year, however, there are helpful ways to determine how to manage both.
While holiday plans are being shifted and guest lists are being cut down, it is crucial to figure out what is worth overspending.
Plan Ahead
Spending for the holidays is unavoidable and should be treated as such. It is essential to determine how much funds you have left over after subtracting all other necessary expenses each month. Your holiday spending should not disrupt your other essential costs.
After budgeting how much you have left, then you can determine your guest lists and food spending that you actually have the funds for.
Consider holiday shopping in intervals after you’ve calculated your budget for the next few months. That way you’re not overwhelmed with unexpected costs at the last moment.
Control your spending by locking that spending limit that you set for yourself each month so that you can maintain control of the amounts of gifts you give each year.
As you begin your holiday shopping, it’s important to manage and track your spending. Maintain your budget as you proceed with expenses.
Scale Down on the Gift Giving
Set spending limits for each family or friend and consider cutting back on your gift list. It can get overwhelming and challenging to figure out how much to spend for each family or friend.
If your holiday expenses exceed your spending limit, consider scaling back your gift-giving list to a few close family and friends.
Talk openly with them and let them know your downsizing this Holiday season. Given this difficult year, most would also welcome the chance to also downsize to save for other necessary expenses.
Instead of determining how many gifts to each person, set cost limits for each person. Don’t stray off the list by any means as it could change up the initial budget that you set for yourself.
Research Sales
It’s easier than ever to shop for someone in an affordable manner as most all stores are transitioning to online shopping.
This gives you the perfect opportunity to research sales and price match the most affordable option for you. There is browser add ons and cashback apps that can save you money, such as Ibotta, Rakuten, and Honey for shopping online.
Ibotta offers cashback on gift cards and Honey can save you money by searching for coupons that you may not have known about.
Some stores offer lower shipping costs or bulk deals that allowing you to check more than one person off your list.
Shopping online allows you to second guess whether you can fit the expense in your budget before clicking checkout.
Shop early
One way of stretching your money strategically is by getting a head start in shopping.
Instead of feeling the financial loss all at once, shopping early allows you to slowly track your expenses so you don’t feel overwhelmed.
While shopping online is easy, you can save by saving small businesses, and by getting creating homemade gifts.
With shipping taking longer than usual in most states, shopping early takes away the extra expenses of rush orders.
Sales are happening mostly every day online and by getting a head start you can take full advantage of those deals.
Continue to Track Your Spending
Whether you're making the most online shopping or getting creative to cut back, always track your spending through the Holidays. The budget that you created before your holiday season should guide you to make the right decisions.
If you make an impulse buy, always check how it can affect your following month.
January and February are the months where people feel the most impact of the expenses that the Holiday season has brought, however getting ahead can get rid of the stress.
There are budget apps available to you that will alert you when you overspend so that you know where you stand financially. While it may seem as a burden to constantly track your expenses, there are tools available that take away the stress and do all the tracking.
Learning how to save and how to control your expenses also prepares you to make smarter choices in the future or to increase your savings or setting aside money for an emergency fund.
Continue to follow through with your gift-giving list and manage your budget to ensure that you make the most of your money and make the most of this Holiday season.