It’s the most wonderful time of the year, except that your wallet is empty and your hand is aching from swiping your credit card over and over. If you need help budgeting and saving for the holidays, here are a few tips to give your wallet and credit cards the break they deserve.
Set Your Budget
How can you be expected to stay within a budget if you haven’t set a limit? The first step to staying in a budget is making one. List everyone you will be buying a gift for this holiday season. Decide how much you want to spend on each person and add up your totals. If the total is too high, you’ll have to cut down on the amount for each person, remove a person, or go for a homemade present. Once you’ve decided on the right amount, you can move on to the next step.
Plan Ahead
Now that you know how much you want to spend, take a look at your personal finances. If you are already putting money aside for savings, decide how much you want to move over into a holiday budget. You can figure out how much you’ll need to save by the holiday by dividing that number by the number of paychecks you’ll receive before the holidays. The result is how much you’ll need to save from each paycheck in order to pay for your holiday budget.
You can also budget for how much you will charge to your credit card if you don’t want to cut someone off your list or make a homemade present. Decide how much you can honestly afford to put on your credit card during holiday shopping and then stick to it. If you are worried about charging money to the credit card you currently have, you can always apply for a card with more agreeable fees and with better rewards and protection. If this is the case, shop around before you start your holiday shopping.
Clip Away!
Once you’ve got a plan, start looking for coupons and deals now. Many stores offer great deals around the holidays and allow for coupon stacking on certain days. Take advantage of any rewards your credit card offers, such as money back. If you can plan ahead to save your coupons or rewards for stores you know you’ll be visiting during your holiday shopping trip then you will be able to save money and even possibly be under budget. These rewards can make shopping during the holidays much easier and less stressful.
Keep Calm and Shop On
If you do make a mistake with your budget (hey, accidents happen!) don’t freak out. Take a step back, do a little tweaking here and there, and start over. Remember, the holidays are about spirit and joy, not about money. Try to keep that in mind while you’re shopping, planning, and spending. Do your best to stay calm and levelheaded. You may be over budget in some places, but under in others. It will all even out in the end.
