Holiday spending is an event that happens every year. We all love to spend money on material items or experiences during the holidays. Holidays are special so why not treat yourself or others to something special. The problem is that some people get consumed with holiday spending that it affects them months if not years in a negative way. In 2018, the average American spent over $1,500 for Christmas. For others, they spent even more. Think about the rent payments, car payments, meals, and even investments that can be funded by that $1,500. The holidays are a time to splurge on loved ones; however, we cannot get consumed to the point that we make unwise purchases that affects us negatively down the road. Here are 5 ways to save money during the holidays.
November 29, 2020
By: Darius Malbon
1. Make A Budget
Making a budget is probably the most import thing one can do in terms of saving money during the holidays; however, the key is to stick to the budget. Many people can start creating a budget early in the year and that way they can start saving early for holiday purchases. One should map out decorations, travel, food, and any gifts that they are planning on buying. Also, be smart and remember not to go overboard. In addition, one can find extra work to try to add extra income for certain purchases, but again, you need to be smart. Adding a budget will allow you to stay on track and make planning for expenses much easier throughout the holidays so that it doesn’t negatively affect you down the road.
Reflection 1: Create a budget early so you can map out the expense’s way in advance.
2. Create A Shopping List
After you make a budget, make a shopping list. You can write down a list of all the people that you want to buy gifts for that year. Then, add how much you want to spend on each individual and gift to the list. Focus on how much you want to spend not on what you want to buy. This tip helped me the most because it allowed me to focus on the amount that I was spending versus getting consumed by some extravagant gift that I wanted to purchase for someone. If your list exceeds your budget, then you may have to leave out some people or change the gift that you purchase to something less expensive.
Reflection 2: Making a list allows you to visually see all the individuals and gifts that you want to purchase up front that way you don’t overspend by falling victim to unexpected sales that look appealing.
3. Be Extremely Careful Using Credit Cards
Be careful with using credit cards. Using cash and prepaid cards can be more beneficial because you are able to limit your spending much easier. Credit cards offer spending limits that far exceed what an individual needs to spend which causes people to get trapped in consumer debt. When one pays with cash or a prepaid card, they have no obligation in terms of paying for that gift long term. However, when people use a credit card, that debt can easily linger for a while. People often say they will pay off the debt the next month, but forget to plan for any other obstacles that life may present to them. Also, credit cards have a nice feature called interest. Most of the time, people pay much more for a gift because they get hit with interest from the credit card. Don’t fall into the trap.
Reflection 3: Using cash and prepaid cards can prevent people from accumulating consumer debt.
4. Thoughtful Gifts Outshine Expensive Ones
Some people are hard to shop for in life. They have reached a point where they have everything they need. Personally, this is how I am. I am not very materialistic which makes thoughtful gifts more appealing for me. Thoughtful gifts can be inexpensive but have a longer lasting impact on the individual receiving the gift. Many times, people get caught up and buying expensive material items that people use one time and then forget about it. The gifts that come from the heart can create a special memory for someone that can create a greater impact.
Reflection 4: Photos, decorative items, engraved items, and even tickets can be thoughtful gifts that can have an unique impact on someone.
5. Take Advantage Of Special Sales Days
Holiday sales can save you tons of money. Often times, items are slashed a significant amount that can save you hundreds. Also, if you are shopping online, there can be items that you purchase with free shipping. I know people love free shipping!
Amazon Prime Day kicks off on Oct.13.
Black Friday is the Friday after Thanksgiving.
Cyber Monday is the Monday after Thanksgiving.
Free Shipping Day is on Dec. 14.
Reflection 5: Sales are a smart way to purchase gifts. Remember not to go overboard with expenses.
Proverbs 22:7 – The rich rule over the poor, and the borrower is servant to the lender.
Disclaimer: This is for general and educational purposes. Profits or losses are not guaranteed. We are not liable for your financial engagements nor outcomes.
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Website: www.dariusmalbon.com
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Sources:
G Dautovic, “Christmas Spending Statistics: Deck the Halls with Boughs of Money” Fortunly, June 18,2020, accessed November 27, 2020 https://fortunly.com/statistics/christmas-spending-statistics/#gref
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