ust because you’re on a budget during the holiday season doesn’t mean you can’t have a great Christmas. You just need a plan and early preparation. Here are six solid tips for stretching your holiday budget to the max.
1. Budget Every Dollar
If you’re low on cash this year, you’ll need to know exactly how much you can spend on holiday gifts without overspending. To make the most of the money, make a list of everyone you need to buy for and then give every dollar a job. Write out how much you can spend on each person and stick to that amount no matter what.
2. Track Spending
Simply watching your bank account online to make sure you don’t overspend is not enough to keep you in the green. You need to know exactly where the money is going and how much you have left, which is achieved most accurately with a good tracking system. Keep the receipts, write down everything in your checkbook, or use budgeting software to show how much money you spent and where it went.
3. Shop Early
Get a head start on your shopping to save money. Break up the payments over several months instead of cramming it all into December to make holiday shopping more manageable. If you know that you’d like to get an expensive gift for someone, shop early and put it on layaway or create a payment plan so that you will own it by the time Christmas comes around.
4. Pre-Shop
Before you hit the stores, do a little pre-shopping to find the best deals on items you want. Check online stores, catalogs, and coupon books for special deals and the best pricing. Knowing which stores have the cheapest items could save you hundreds.
5. Hit the Sales
Take advantage of sales. If you can handle the stress of Black Friday, do your shopping then. Also look into Cyber Monday, which is the online version of Black Friday. Be aware of the times when stores have sales too. For example, it might not hurt to save some of your shopping for the week before Christmas when stores slash prices to get rid of inventory.
6. Don’t Use Credit Cards
If you don’t have the money to pay for something in your checking account, or know you won’t be able to eliminate your credit card debt by the end of the month, don’t buy the item. You don’t want to be spending the several months following the holiday season paying off your expensive purchases. If you’re worried about overspending, leave your credit cards at home when you go shopping and pay for everything in cash.
Don’t stress over the money this holiday season. By budgeting and shopping wisely, you’ll be able to enjoy time with family and friends instead of worrying about money.
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