The holiday shopping season is about to kick into high gear. Are you prepared to get through this season without spending everything you’ve earned this year? According to this article from Paul Sisolak, highlighted in U.S. News, even if you’ve taken steps to save money and stay frugal during the holidays, you still might be habitually wasting money without knowing it. Here are some ways you’re overspending… and how to stop.
Hosting a holiday feast. Christmas usually becomes Thanksgiving Part II, with a banquet-sized dinner big enough to feed a family 10 times the size of your own. The hundreds of dollars spent at the grocery store, plus preparation and cooking time – and that Pinterest-inspired table decor – isn’t always worth the effort for a grand meal. Save yourself some money and energy by turning your dinner gathering into a potluck instead. Invite relatives and guests to bring their favorite dishes so the cost of your holiday meal is spread out evenly over everyone who comes to the table. Bonus: You won’t have to loan out your containers for leftovers either, because everyone will have brought their own.
Shopping without a strategy. Having a clear-cut budget for gifts is a great start, but it can quickly go to waste if you don’t have a shopping plan in place. Saunter through your local mall, and you’ll likely have a hard time resisting the temptation to buy impulsively for your kids, spouse or yourself. Indulge, and you might be paying more than if you compared prices online or in other stores beforehand. You might even be shopping at the wrong time. If you buy because you happened to wander into a certain store, you could be paying full price for a boatload of toys that will go on sale the next day. Your best course of action is to outline a budget and shopping wish list, compare prices, look for discounts or coupons, and adjust your shopping list to fit within your budget. That way, you’ll have your finances set, and you’ll have a strategy to get exactly what you need at the right time.
Putting everything on a credit card. It’s possible to stay within your budget yet overspend at the same time if you exclusively use your credit cards for your Black Friday-to-Christmas Eve shopping. If you don’t pay off your balance on time, the penalty interest you’ll be hit with will cancel out all your efforts to save money during the Yuletide season. Rely too much on your plastic, and it’ll show up on your credit report, too. Your credit score might even take a hit if your debt-to-credit ratio is too high. Like reminding yourself not to drink too much egg nog this year, use credit in moderation. Opt instead for your debit card or cash if you need help staying disciplined.
Going overboard with Christmas lights. Don’t try to compete with those houses with the massive light displays set to music that you’ve seen in viral videos. Lights covering every inch of your house isn’t exactly a bright idea from a financial standpoint. It can cause your utilities bill to skyrocket for the month of December. Try going easy on the lights and opt instead for simple, colorful decorations that can be seen during the daytime and at dusk, such as ribbons, tinsel or an inflatable seasonal character. Combine them with fewer lights for a tasteful, yet affordable, effect.
Buying overpriced wrapping paper. You know you’ve got a problem when the wrapping paper you’ve bought ends up costing more than the gifts you’re wrapping. Boutiques and gift shops can be great places to pick up trinkets for friends and family, but you should pass on the expensive paper sold there. Just like that holiday meal that gets devoured in minutes, wrapping paper is torn through in seconds and then thrown away. Adorned with a nice bow or ribbon, wrapping paper from a discount store like Dollar Tree is often just as pretty as more expensive paper. Or, you can make your own wrapping paper using old newspapers, brown paper bags or even pages from old books or maps that you can find in bargain bins.
Overspending on shipping. When it comes to gift shopping, you can usually get better deals and selections if you buy sooner than later. If you’re purchasing some gifts online, however, you might pay too much in shipping if you shop too soon. Free Shipping Day, when many retailers offer free shipping on holiday purchases, is Dec. 18. As part of your budgeting and shopping strategy, plan ahead to take advantage of free shipping offers. If you’re traveling to visit family for the holidays, save yourself the trouble of carting all your packages with you by shipping gifts directly to where you’re spending the holidays together.
