Health & Fitness
5 Tips to Save Money and Stay Out of Debt This Holiday Season
During the holiday season, it is easy to feel overwhelmed and stressed about not having enough money to spend on your loved ones. An unfortunate reality is that debt is becoming about as common as Christmas trees and turkey dinners. It’s important to remember that you do not have to go into debt to show how much you care. Here are some tips to help you enjoy the holiday cheer without the financial fear.
Tip #1 - Develop a budget and stick to it
Decide how much you can afford to spend this year. Gifts, travel expenses, and holiday meals are the top three budget categories but don’t forget to include things like gift wrap, postage, and the holiday tips you may give to people such as your doorman, babysitter, and mail carrier.
It’s recommended that you spend no more than 1.5% of your household annual income on holiday gifts and entertainment. Try this online holiday budget planner to determine what you should be spending. With your overall budget established, create a list of everyone you wish to buy a gift for and decide how much you would like to spend on each person. Don’t forget to track how much you actually spend; a gift list can be a helpful tool to keep you organized.
Tip #2 – Start early and stay organized
Start shopping as early as possible. The holiday season can be hectic, and for many, the less time they have to shop the more likely they are to spend in order to check a name off the list.
- Shopping early lets you take advantage of sales and seasonal pricing trends.
- Starting early spreads out your spending; this helps you avoid using credit cards.
- Take your gift log. With the guidance of a good list, you can avoid drifting from store to store purchasing multiple gifts for some, and nothing for others.
- Shopping online is a great way to comparison shop and helps you resist the temptation to make impulse purchases.
Tip #3 - Entertain on a budget
Hosting a party or holiday dinner is a great way to bring folks together over the holidays, but these meals can be expensive. The good news is that it is possible to serve a bountiful meal on a budget. It just takes some planning and forethought.
- Check grocery store circulars and stock up on non-perishable staples when on sale.
- Shop the top and bottom of the shelves at the supermarket; the most expensive items are in the middle.
- Buy generic food staples, your guests will never know the difference.
Consider hosting a potluck holiday dinner. This way, you'll only be responsible for the cost and preparation of one aspect of the meal. Extend the idea to beverages and invite guests to bring a favorite wine or beer that pairs well with their contribution. A potluck done right is tasteful and a brilliant way to save money.
Tip #4 – Don’t wait for last minute travel deals
Unlike the numerous sales that run between Thanksgiving and New Year's Day, airfare and hotels tend to be less expensive the further you book from the holiday. Once you know your plans, start shopping for the best prices for your airline ticket or hotel room.
- Search travel sites like Expedia.com, Travelocity.com, and Kayak.com for the best flight and hotel deals.
- Smaller carriers including Southwest, JetBlue, and regional airlines don’t post airfares on discount websites so visit their websites directly.
- If you’re traveling with a larger party, book in smaller groups. You may be able to get at least some of the seats at a lower rate and save hundreds.
Recognizing someone with a tip who provides you with a valuable service is a nice way to say thank you. How much should you give? There's no one "right" amount for everyone, but here are some recommendations from Emily Post for holiday tipping.
Determining how much to tip will depend on how long you've used someone's services, how important the service is to your life, the quality of the service you've received, and where you live. If money is tight, but you still want to recognize someone, homemade gifts with a handwritten note of thanks are always appreciated.
Celebrating the season doesn’t have to make a huge dent in your savings or leave you starting the New Year in a mound of debt. Follow these money saving tips from Lakeland Bank to enjoy the holidays on a responsible budget.
