Christmas is easily the most expensive holiday of the year. In fact, the average American adds $1,000 worth of debt to themselves each holiday season. That includes meals, gifts, decorations, travel, and other expenses. As we get closer to this time of year, we need to start preparing our budget right now. Here are 5 ways to prepare for holiday spending.
1) Take a Christmas Inventory
You don’t have to buy brand new things every single year. You may already have a lot of stuff laying around your home. Do you have a few dusty decorations hiding in your attic or basement? What about a few gifts you’ve received in the past and never used? Regifting isn’t a crime. Neither is using old decorations. If it saves you money, that’s what matters most after the season.
2) Make a List and Check It Twice
Take a look at how much money you’ve spent during other Christmas seasons. Then, write a list of everyone you want to buy for. You can start working on that list earlier in the year. For example, Amazon Prime Day is often in July. That’s a perfect time to get a lot of great stuff for Christmas earlier. Rather than going into debt buying everything in November and December, start early. Take care of each need little by little.
3) Set Up a Christmas Savings Account
If you’re someone who enjoys going all out for Christmas, then set up a savings account. Little by little, throughout the year, you can add to it. This prevents you from having to go into debt. You should also decide that whatever you saved is what you’re going to spend. Be disciplined and don’t go over that amount.
4) Cut Other Types of Spending
When you know you have a lot of spending coming up, it’s good to find other things to cut. Wasteful spending on top of everything else will only put you deeper in the hole. Again, it’s better to set a budget and stick to it.
5) Remember the After Christmas Sales
If you’re looking for new decorations and other things, it’s best not to buy them before Christmas. That’s when they’re the most in-demand and the most expensive. After the season, stores are looking to get rid of the extra stuff they have. That allows them to sell it at a discount. There’s no harm in waiting until after the season to get the decorations you need for next year. It will save you a lot of money in the long run.
