The month if December is already here, and with it comes many additional expenses which you are supposed to incur.
It’s too late to “get a jump” on saving in advance for this holiday season, but that doesn’t mean you’re stuck paying through the nose. These budgeting tips will help you make the most of the money you’ve got for this season, however much money that happens to be.
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Decide on Your Budget
Be honest with yourself about how much money you can responsibly spend this year. Creativity and bargain-hunting can help you stretch your money a bit further, but only if you’re realistic about how much money you have in the first place.
How do you calculate this amount? First, take a look at your existing budget. How much do you normally spend each month on discretionary items like restaurant dining, internet subscriptions or DSTV? Can you cut any of these bills — at least temporarily — while you save for the holidays?
In other words, “reallocate” some of your discretionary spending towards your holiday budget. You can either afford to dine at restaurants or you can cover presents for your family, but you might not have space in your budget for both.
2. Choose Cheaper Traditions
Traditions are what make the holidays so special, but they can be a financial burden. If your traditions include holiday travel, paying for a special attraction, or surprising your kids with extravagant gifts, you might find yourself going significantly over budget in the name of family.
While traditions are important and admirable, they don’t have to be expensive to be memorable. In fact, you might find that your kids prefer the cheap stuff to the grander gestures. So many activities and traditions are inexpensive, or even free – you just have to know where to look. By making cheaper events and traditions part of your celebration, you can save money without skimping on the festivities and memories.
3. Lists Are Your Friend
Last-minute emergency purchases are the easiest way to throw your budget into a tailspin. Writing lists can help you remain on track.
Write down everyone you’ll need to buy presents for this year — family, friends, etc. and write the amount of money you have to spend on each person.
Write down all the festivities for which you’ll need to buy food and drink, from the family Christmas Eve dinner to the New Year’s Eve bash you’d like to bring a bottle of wine to.
Outline all the travel-related expenses you’ll incur. Remember you won’t just have to pay for bus fare and lodging, but also for meals on the road, public transit or airport parking.
Continue making lists of everything you’ll need to spend this holiday season, from gifts to travel to parties. You may need to cut back in one area to make room for another.
4. Take Care Around Sales
Holiday sales can be an epic opportunity to save money – but be careful. Not all deals are created equal, and some may not even be truly discounted, as some stores keep prices the same but simply mark items with a “sale” sign.
Always compare products prices in different shops before you purchase an item during a sale. Or, if you tend to fall victim to the festive atmosphere of a store and make unwise purchases, try shopping solely online. You can snag great deals on Jumia, Olx, Kilimall etc. and get a lot more for your money.
Of course, you never save money by spending, no matter how significant the discount. Sales are great, but they don’t mean much if the money isn’t in your budget. If necessary, bring a write-up of your budget so you can check your spending in real-time and avoid being swayed by a screaming deal.
5. Know When to Stop
When your list is finished and you’ve checked it twice, it’s time to stop shopping. Know when you’re finished, and avoid stopping by the mall “just to see what they have” – this can lead to making poorly planned purchases and blowing your budget.
I typically get the itch to shop a few days before Christmas, so I specifically save shopping for stocking stuffers until the last minute. That way, I’m still operating within my budget and purchasing something I actually need while fulfilling the urge to be part of the holiday hustle and bustle. By planning purchases and stopping when you’re done, you can be spared that holiday hangover come January.
6. Shop Smart
There are lots of ways to save on holiday gifts. Take the time to bargain-hunt and get creative by employing tricks like Booking your holiday travel during non-peak days (You can often find great deals if you’re willing to fly or travel on Christmas Day.)
7. Tweak Your Budget Temporarily
If you’re really up against a wall, you may want to institute an emergency budgeting protocol like you would for an unforeseen large expense like a home repair or medical bill. You can free up some extra room in your budget with temporary measures like:
Slashing other areas of your budget — maybe you can forego eating out for the next couple months, or lower your DSTV or ZUKU or WIFI plan since you won’t be home to watch much TV anyway.