Holiday Budget
How to Set and Stick to a Holiday Season Budget
Black Friday and Cyber Monday have come and gone, officially kicking off the Christmas shopping season. According to the American Express Spending & Saving Tracker, two-thirds of Americans will make a holiday budget this year and almost half believe they will stick to it. Here are some tips to help you do just that.
Create a Budget.
If you're strapped for cash this year, Frugal Families recommends creating a holiday budget based on what you can afford to spend, not on what you think others expect you to spend. What do you need to include in your budget? According to the National Retail Federation, the average person buys gifts not only for family and friends but also for co-workers, babysitters, and others, plus holiday decorations, flowers, food and candy, and holiday cards and postage. Having a budget at the outset will help keep you from overspending on such things this holiday season.
Use Cash Only.
Christmas shopping causes too many people to fall into the trap of putting everything on a credit card and realizing only in January, when the bills come in, that they drastically overspent. Let's face it: It's much easier to exceed your budget if you don't have to worry about the consequences in the moment. To keep within a holiday budget, Frugal Families advocates buying only what you can pay for in cash. If you must use a credit card, make sure you can pay it off all at once without racking up interest by making payments well into the new year.
Shop Sales and Use Coupons.
While coupons and sales can save you money all year long, retailers practically beg for your business during the Christmas shopping season. A sale or a coupon will appear almost everywhere you go. Compare those sale prices and coupons to make sure you get the lowest possible price. Keep in mind, though, that just because it's on sale doesn't mean you absolutely have to have it. Yep, we're talking about impulse buying here. Ask yourself if you really need it for the holiday season, and if not, don't buy it.
Shop Online.
We recently compared the cost of in-store shopping at Walmart and online shopping at Amazon to determine which was cheaper. The question of Amazon or Walmart is a tricky one to answer, but Amazon came out cheaper when we priced out a handful of the exact same gift items, including a LeapPad Explorer tablet for kids and several books and movies. The comparison also revealed some additional online shopping perks, such as the fact that Amazon doesn't collect sales tax in most states. Free shipping on many orders and the convenience of shopping from home, away from the crowds, add to the appeal. Plus, it can be easier to compare items to get the best deal when shopping online, as opposed to running from store to store to compare specs and prices.
Take Advantage of Outlets.
Our recent research on outlet shopping vs. retail showed the outlet mall to be a real money saver, offering nearly 30 percent savings on a list of gifts and other holiday items. If there's an outlet mall near you, it can't hurt to check it out.
Are you making a holiday budget this year? If so how do you plan to stick to it?
