Coming out of the Coronavirus pandemic, this holiday season figures to like none that we have experienced in the past. With limited financial resources, this is the year when consumers will need to focus on not overspending during the holidays.
In recent years, consumers have reported spending an average of as much as $1,000 on Christmas gifts. While the trend has been on an upward trajectory, things could be very different in 2020. To help you avoid overspending at a time when your financial resources are likely limited, here are 6 tips for your consideration.
1. Create a Budget
Throughout your life, you have likely encountered people who have encouraged you to create budgets and abide by them. Well, this would be a great time to start the budgeting process.
The process is actually very simple. You start with the maximum amount you can safely afford to spend this holiday season. You can budget out your expenditures over line items like decorations, gifts, meals, and travel. The amounts you list are your target expenditures. The key to an effective budget lies in your ability to abide by it.
2. Search for Deals Online
The internet is like a superhighway to information. If you want significant savings on your holiday purchases, you are going to have to invest some time searching for the best deals. The good news is you can do your search online without ever having to leave the house.
Even if you anticipate visiting brick and mortar stores to make your purchases, you can save a lot of time by identifying deals before heading out to the stores. If purchases can be made online with free shipping, the money you save by staying home might beef up your budget a little bit.
3. Find Alternative Ways to Celebrate the Holidays
There is nothing written in stone that says the holidays exist only to exchange gifts. Maybe, this is the year to try a little experiment. This could be the year to simply focus on alternative ways to enjoy the holidays without breaking the proverbial bank. You might want to focus on simply bringing the family together for a massive potluck with limited gifts in tow.
4. The Group Gift Concept
If you have a large family, your shopping list might be a little intimidating at a time when financial resources are limited. When buying gifts for everyone is no longer feasible, there are a couple of great group-giving alternatives.
Try a Secret Santa, but with a theme. Depending on the ages or interests in the family, assign each member of the family with a name and then everyone in the group has far fewer people to buy for. Everyone wins in this scenario. Additionally, there’s a lot less stress involved.
5. Time to Use Your Credit Card Points and Cash Back Offers
If you consistently use credit cards throughout the year, you might have a lot of rewards points sitting in your accounts. This would be the right year to convert those points to gifts or discounts. Also, your credit card company might be offering holiday cashback rewards, something you should consider pursuing.
6. Change Your Mindset
The focus of the holidays is to bring family together and enjoy each other’s company. The problem you have with overspending likely comes from the pressure you feel to give. The reality is that a good meal, a great conversation and a lot of laughter is all you really need.