Menu #46: Smart Ways to Save This Holiday Season

STATS STACK 🥞

4 hours and 20 minutes is the average daily time U.K. adults now spend online across devices, a significant increase from 3 hours and 41 minutes in 2023 (Source: Ofcom)

610,000 U.S. new home sales in October 2024 marked a 17.3% decline, with the South experiencing a 27.7% drop and the median sales price rising to $437,300.  (Source: Bloomberg)

$33.6 billion was spent globally online on Thanksgiving, followed by record-breaking Black Friday sales with U.S. consumers spending, contributing to a global total of $74.4 billion — marking year-over-year increases of up to 10.2%.(Source: Bay Area Times)

DEEP DISH 🍕

Smart Ways to Save This Holiday Season

The holiday season is a time of joy, celebration, and, let's be honest, spending. Gifts, decorations, and festive gatherings can quickly add up. But with some smart budgeting, you can enjoy the holidays without breaking the bank. Here are some personal tips and insights on managing holiday expenses effectively.

Create a Holiday Budget

Start by listing all potential expenses, including gifts, decorations, food, travel, and events. When I first budgeted for the holidays, seeing the total helped me stay on track and avoid impulse spending.

Set Spending Limits for Gifts

Gifts are a major holiday expense. Set a spending limit for each person on your list. A few years ago, my family did a Secret Santa exchange with a set budget, which made gift-giving fun and affordable.

Get Creative with Gifts

You don't need to spend a lot to give meaningful gifts. Consider homemade gifts like baked goods, crafts, or photo albums. One year, I made homemade candles, and they were a hit.

Shop Early and Look for Deals

Avoid the last-minute rush by starting early. Look for sales, compare prices, and find the best deals. I spread out my spending by picking up gifts throughout the year during sales.

Use Cash or a Prepaid Card

To avoid overspending, use cash or a prepaid card for holiday purchases. This simple strategy helped me stay within my budget and avoid post-holiday credit card bills.

Plan Your Holiday Meals

Plan holiday meals in advance and make a shopping list. Look for sales on non-perishable items and buy them ahead of time. I also host potluck-style gatherings to share the cost and effort.

Travel Smart

If you're traveling, plan and book early for the best deals. Flexible travel dates and alternative routes can save money. One year, I saved by flying a day earlier and staying with friends.

Limit Impulse Purchases

Stick to your budget and shopping list to avoid impulse purchases. Waiting 24 hours before making an unplanned purchase often helps me decide if I really need it.

Make a Post-Holiday Plan

After the holidays, review your spending to improve next year's strategy. I also start a holiday savings fund in January, setting aside a little each month to build a cushion.

Managing holiday expenses doesn't have to be stressful. With a bit of planning and creativity, you can enjoy a festive season without worrying about finances. Remember, the holidays are about spending time with loved ones, not about how much money you spend.

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