Has going over budget become your holiday tradition? Every January, do you dread your credit card statement? Fear not! There are easy ways to budget without compromising any of the fun.
Here are our five tips to help you stick to your budget during the holidays.
1. Make a seasonal holiday budget
As the season gets closer, prepare a budget for the holidays. Decide how much you are willing to spend, and most importantly how much you can afford to spend.
First, figure out how much you have to spend. Look at your bank account, your paycheques for the rest of the year and your fixed spending, like rent. If you have available funds, decide how much of it you're willing to put towards holiday cheer.
Second, list all the extra things you must spend money on during the holiday season. This may be gifts for your kids, tips for your hairdresser or barber, extra groceries, photos with Santa...you get the idea.
Third, decide what items on your list are "must-haves" and which are "nice to haves." Apply your available cash to these two categories to create your holiday budget. Track your spending and stick to your budget.
Can't make it work? You can also balance your budget by bringing in more money. Is there a way to hustle on the side and make a bit of extra dough this season? If not, cut back on a nice to have that brings you less holiday joy.
2. Buy non-perishable groceries in advance
When it comes to non-perishable items, stock up in advance. You can save money if you stock up when things are on sale. Look for deals in your grocery store flyers months ahead for things like baking supplies, frozen food, cookies, and crackers.
Buying ahead of time will keep you from having to spend last-minute when items are at a premium. And spacing out your holiday food purchases over time will help you manage your monthly expenses.
3. Don't wait until the last minute to buy gifts
For those you need to buy for, shop early. Take advantage of sales throughout the year, not just Black Friday and Cyber Monday deals. While you can wait in the long lines on Black Friday, online deals are often just as good and can save you time.
If money is tight, organize a Secret Santa or White Elephant gift exchange where everyone brings one gift. Or instead of giving a gift, organize a cookie swap with friends where everyone bakes several dozen of their favourite holiday cookies and gifts a dozen to each friend. Not only is it a fun and entertaining holiday activity, but it also saves you the stress of finding gifts for everyone.
4. Take advantage of credit card points
Want to buy people great gifts but don't have a lot of cash? Redeem your credit card points for the gift cards, luxury items or electronics you want to give them.
You might also want to look through your wallet to see if you have unused gift cards you can re-gift. If you've started using them already, you can buy gifts with the remaining balance or sell them online for cash.
5. Crowdsource holiday dinners
Preparing a holiday dinner can be expensive. You can cut back on the cost by asking guests to pitch in. Some guests will love the opportunity to bring a dish they're proud of. Family and friends can easily bring dessert, drinks or side dishes.
This not only spreads the costs around, but it also saves you the time of having to make the whole meal. In addition, you may end up with enough leftovers to help you save a little on groceries.
Breathe easy in the New Year
Saving money will actually help you enjoy the holidays more, and stretching your dollars means you can breathe easier in the New Year.