How To Be Frugal During The Holidays (without missing out)
Overspending occurs around the holidays among many people. A sizeable portion of this money may be set aside for gifts for family and friends, but other costs like travel, holiday décor (for those who want to go all out), entertainment, food costs, and more may add up quickly. You can survive the holiday season without going over your spending limit or incurring debt. By January 1st, it will all have been worthwhile, even though it requires a little planning and effort. Keep reading…
Here are some tips to help you avoid the holiday financial headache:
Tip #1: Create a budget
Most people don’t like the “budget” word — but if you decide how much you can spend, you are more likely to spend less. It’s best to always have a budget for the entire year in addition to one tailored especially for the end-of-year holidays.
- Prepare your budget
- Make a spending plan to cover your travel costs without severely depleting your bank accounts.
- Making a decision about what is most important should come first, and everything else can follow.
In considering what you are ready to give up, keep your expectations realistic. If you spend all of your monthly clothing allowances on holiday presents, you might not have any money left over when it comes time to buy anything worth your while in the coming year.
Tip #2: Make a List…
Compile wish lists from family members and make a list of presents you could give your friends. Without a list, you are more likely to make impulsive purchases and last-minute, frantic purchases that will break your budget.
A list can let you search for specific items, compare costs, and locate the best offers.
Tip #3: Now that you’ve made a list, be sure to keep it short
Everyone is experiencing the effects of inflation, so your friends and family will likely appreciate your suggestion to scale back on gift-giving this year.
Review your gift list and think about it.
Try a “secret Santa” exchange so that each person buys just one gift rather than exchanging gifts with everyone in your social group. Trust us, they will understand.
Tip #4: Another great way to save money is to shop early
You can benefit from bargains and discounts such as seasonal end-of-season sales, Black Friday sales, Boxing Day sales, and other sales occasions to get gifts for the holidays.
You can also explore the alternative of early shopping, you won’t have to stress about running about at the last minute, which can result in overspending.
PS: No matter how good the discounts are, don’t go overboard and buy things that aren’t on your list, or you’ll blow your budget in no time.
Tip #5: Limit Little Luxuries
It can be hard to resist treating oneself when shopping for others, but tiny luxuries can pile up quickly. Establishing a budget for rewarding yourself will help you strike a balance between deprivation and indulgence. So don’t fall for it, stay on track with your budget plan and list.
Tip #6: Plan a Potluck dinner
It can be expensive for one person to arrange holiday dinners. Invite everyone to contribute a dish, then combine them all. Offer the protein of your choice, such as chicken, and invite guests to bring sides and dessert. You will save money and time by allowing everyone to pitch in, giving you more time to enjoy your time together.
Tip #7: Invest a little against the new year
We saved the best for last (we do say so ourselves). While drafting out your budget plan for the holidays, it’s always a smart idea to set aside a portion (no matter how small) and invest it. You can invest on Wealth.ng and grow a diverse portfolio.