Do you want to stop debt from piling up this holiday? That’s easy! You just have to come up with a holiday spending strategy!
Although it is already November, there is plenty of time for you to think of a plan that will keep you from having holiday debt when the New Year comes around. We all want a debt free life and it would be great to have that status when you welcome 2015.
But before you can achieve that, you may want to decide how you will go about your holiday shopping this year.
According to the survey done by the National Retail Federation, holiday sales this year is expected to rise. This data found on NRF.com revealed taht despite the shaky start in 2014, the sales in November and December will increase by 4.1%. That is an estimated $616.9 billion. This figure does not even include the spending that is expected to be made on cars, restaurant meals and gas.
Despite that expectation, you should know that you still have full control over your own holiday spending. You may decide to spend more this year, as the report forecasted, but you can also decide to keep your spending to a minimum. Believe it or not, you can enjoy the holiday festivities without having to spend a lot of money. At least, it is not practical if you know that you cannot afford it.
Different strategies for a modest spending this Holiday
The key to control your spending this season is to come up with a strategy. That simply means coming up with a plan that will help you maximize your limited budget. There are a couple of strategies that you can look into that will help you control your holiday spending.
- Shopping early. Some of you may think that November is already too late. Well it may be but at least it is not yet December. The closer you get to Christmas, the harder it will be for you to get the best deals. But if you start earlier, you have enough time to shop around and wait for the best deals or sales promotions that are coming up. If you want to avoid holiday debt, then this is what you want to schedule early. When you are in a hurry while shopping, you tend to make impulsive choices that usually make you spend more than you should. Not only that, you might have to squeeze in all your shopping in one place. That will help you stick to your holiday spending budget.
- Shopping online. Another strategy that you may want to look into is to do your holiday shopping online. According to ConsumerAffairs.com, 56% of consumers plan to shop online. Retailers are expecting that the number of consumers who will buy online will go up this year by 4.5%. Not only will consumers consider buying online, they are expected to purchase 44.4% of their shopping list via the Internet. This is considered to be the highest percentage since 2006. Some shoppers will even use their mobile devices to complete their purchases. Around 55.7% of consumers will use their smartphone to purchase some fashionable pieces this holiday. 35.8% of them will use their phones to research products and prices. All of the popularity will benefit your holiday spending because of convenience. You do not have to deal with long lines or physically driving yourself from store to store. You don’t have to carry heavy bags of purchases. A lot of these online shopping sites have their own promotion codes that can help you buy items for free.
- Making homemade gifts. You can also start making your own gifts – or at least, some of them. If you know how to bake, you can whip up some brownies or cupcakes, put them in decorative containers and give them to your colleagues and friends as gifts. Tap into your creative side and come up with something nice to give the people around you. That should help you save on your holiday spending.
- Limiting gifts. Lastly, and probably one that is difficult to do – you can limit the gifts that you will send out this year. Just be honest about what you can afford to spend this holiday and stick to that budget. Then take out your list and scratch off the people that you do not have to give gifts to. If you cannot make homemade gifts for them, then simply scratch them off your list. Or you can probably group your gifts. For instance, instead of buying a gift for every member of your neighborhood, why not group them into families? Give them one gift that you are sure everyone can enjoy. Or you can tell your couple friends that you will not give them gifts so you can concentrate on giving gifts to their children instead.
Your strategy does not even have to be one of these. You can come up with your own. The bottom line here is, you should have a plan when it comes to your holiday spending. That is the only way that you can get the most out of your budget.
Tips to save money while shopping this Holiday
If you want to have smart spending tips, here are a couple more that you can use while you are going through your holiday shopping.
- Start with a shopping list. This will keep you focused and help you avoid buying things that is not part of the budget.
- Know what you will buy each person on the list. You can research online and compare prices before you go to the actual store to buy what you need.
- Organize the shopping trip. Spread it out to different weekends if you have to. But make sure that you know where you will be and what you will buy in every store. That way, you can come and go without wasting any time. If you can, visit all the stores in one weekend to save on gas. Also, call each store to make sure that what you want to buy is still available.
- Work on your patience. Do not grab the first thing that you see. Compare prices and look for great deals before you settle on a product to buy. According to USAToday.com, competition is expected to be fierce this year and retailers will be vying for customers by enticing them with deals and promotions. Be on the lookout for the best one.
- Take note of any rewards that your credit card may have. You may be able to utilize this for more savings or freebies.
- Do not shop with the crowd. If your schedule can permit it, shop early or during late store hours. You will find what you need easily and you can finish shopping a lot faster.
- Avail of freebies. Things like free gift wrapping will really be a huge thing. You can save both time, money and effort. If someone is offering it for free, why not grab it?
Remember that the way you handle your holiday spending will determine if you will be in debt next year or not. You do not want to wake up after a festive holiday only to find out that you have a lot of debts to pay off. Ideally, you want to use cash for purchases. But if you have a great rewards program on your card, then go ahead and use it. Just make sure that you know your limit and you can stick to it. And set aside the cash so you can pay it in full at the end of the month. That way, what you spent on your credit card will be paid off without any interest.