Under the pressure of buying presents and entertaining guests, it’s natural to experience a spike in financial stress during the holiday season.
Instead of biting your nails at the thought of finding the right gift for your mother-in-law or fretting over a ritzy dinner for out-of-town relatives like you did last year, take a moment to regroup. The holiday season doesn’t need to be such a financial burden! If you’re looking for ways to keep your bank account afloat during December’s hustle and bustle, read on to discover our top money-saving tips for the holidays.
Lesson 1: Budget
Before you get sucked into the festive season, create a budget to ensure you’ll have the funds you need for the basics first. What bills are you obligated to pay in December and January before the presents and other goodies are factored in? Once you’ve figured out what you have to spend, you can budget for your holiday to see your sister and that action-figure your nephew can’t stop talking about.
If it looks like you’ll need a financial boost to make it through the holidays, don’t rack up the credit card debt. It’s better to take out a small personal loan that you can repay slowly at a fair interest rate than end up swimming in high-interest rates and overdraft charges.
Lesson 2: Avoid Impulse Buying
Big, blowout Christmas sales make it tempting to pick up a little something for yourself when you’re out and about. To help you stay focused, make a list of what you need to purchase and don’t veer from the list unless you’ve stumbled across a cheaper alternative to a gift for someone else.
Another money saving tip? Shop on your own! Experts say you are more likely to part with your money if you turn your gift hunt into a social outing. Fly solo and put on those blinders – you’re on a mission!
Lesson 3: Choose Gifts Wisely
Instead of heading to the shops without a game plan, decide how much you want to spend on gifts and make a list of those you can afford to spoil. If you set price limits for each person before you head out, you won’t end up treating your second cousin to a flamboyant gift set just because the David Jones window display put you in the Oprah spirit.
If you have a large family or are getting a group of friends together, consider drawing names so that each adult is only responsible for one gift.
Are you crafty? Brainstorm some ways you can put your talents to use, whether that’s making homemade body scrub for the ladies in your family or gifting your famous gingerbread biscuits to co-workers.
For those short on time, online shopping is a great option. You can compare prices on multiple sites, look for free shipping deals, and save on petrol!
Lesson 4: Save on Entertaining
You don’t have to splash out on a five-course meal at that new French restaurant to impress your family. Cook a simple dinner at home or organise a potluck so that you’re not stuck with a lengthy shopping list. If you live close to friends, you can even try a progressive dinner! By providing just one course, you’ll save both time and money.
Before you plan your meal, take a look at what you have hidden in the back of your pantry or freezer. Anything you can work with? From there, decide on a recipe and jot down all the ingredients you’ll still need to purchase. When you’re at the store, stick to your list and ignore the special on Christmas puddings.
Lesson 5: Relax!
Don’t forget – the purpose of the season is to spend quality time with loved ones and unwind. Your family and friends will understand if you can’t go all out with gifts, and will value your presence more than anything. No one wants you to begin the New Year worried about holiday debt, so give yourself the gift of a sound mind and bank account this year!