Find out what are the best ways to save money during this holiday season, according to experts!
The holiday season can be an exciting yet financially demanding time of year. However, with a few strategic approaches, you can enjoy the festivities without overspending. From early shopping and DIY gifts to cashback rewards and sticking to a budget, there are many ways you can make a difference in your holiday finances. So, here are the best ways to save money this holiday season!
Best Ways To Save Money This Holiday Season
1. Set a Holiday Budget and Stick to It
Establishing a budget is a foundational step to saving money. Start by determining how much you’re willing to spend across all holiday expenses, from gifts to travel and dining. Make a list of expected costs and adjust as necessary to align with your overall budget. Breaking down spending categories can help you stay on track and identify where you might be able to cut costs if needed. Consider using apps or spreadsheets to track your expenses.
2. Shop Early and Look for Deals
Starting your holiday shopping early can help you find better deals and avoid the last-minute rush when prices often surge. Many retailers begin offering discounts well before Black Friday or Cyber Monday, so take advantage of these early sales. Signing up for retailer newsletters or following your favorite brands on social media can grant you early access to exclusive discounts or flash sales.
3. Consider DIY Gifts
Handmade gifts not only save money but also add a personal touch that store-bought items often lack. Homemade candles, baked goods, or even personalized photo albums can be heartfelt and budget-friendly options. You can also create gift baskets with themed items like hot cocoa ingredients or holiday cookies, which can be both affordable and cherished by recipients.
4. Take Advantage of Cashback and Rewards Programs
Utilizing cashback or rewards credit cards can reduce the effective cost of your holiday purchases. Some cards offer higher cashback percentages during the holiday season, especially on certain categories like groceries or department store purchases. If you’re shopping online, consider using cashback apps or browser extensions like Rakuten or Honey, which can apply discount codes and give additional cashback.
5. Make a Gift List and Stick to It
Impulse purchases can quickly inflate your holiday spending. To avoid this, create a detailed gift list for everyone you plan to buy for and commit to sticking with it. This list will help you stay focused on essentials and prevent overspending. If you’re shopping for a large group, consider organizing a Secret Santa exchange. This way, each person buys only one gift, significantly reducing the overall cost for everyone involved.
6. Use Price Comparison Tools
Online tools and browser extensions make it easy to compare prices across multiple websites. Some popular options include Google Shopping and CamelCamelCamel, which track price history on Amazon. These tools can help you ensure you’re getting the best deal available. Set up alerts for items on your holiday shopping list so you’re notified when they drop in price.
7. Focus on Experiences Over Gifts
Many people appreciate quality time and experiences over material gifts. Consider organizing group activities like a holiday dinner or movie night instead of exchanging individual gifts. Not only can this be more meaningful, but it can also cut down on costs. Look for community events like free holiday concerts or outdoor light displays. These can provide entertainment without any significant expenses.
8. Shop Second-Hand or Consider Refurbished Items
For certain items, such as electronics or toys, you can find great deals on gently used or refurbished products. Many refurbished items come with warranties, so you can still gift quality products without paying full price. Check for reputable refurbished options on sites like eBay Certified Refurbished, Apple Certified Refurbished, or local buy-and-sell groups.
9. Limit Holiday Travel
Holiday travel can be one of the biggest expenses, especially if it involves long distances or last-minute bookings. If possible, consider traveling before or after peak times, as flights and accommodation tend to be more affordable outside of the holiday rush. If you need to travel during the holidays, book your transportation as early as possible to lock in lower rates. Flexible dates can also help you find the most budget-friendly options.
10. Set Boundaries for Gift Exchanges
If you have a large extended family or a wide social circle, it’s easy to feel obligated to buy gifts for everyone. Setting boundaries, such as only exchanging gifts within immediate family members or opting for low-cost Secret Santa arrangements, can help limit spending. For friends or colleagues, you could suggest an activity-based celebration instead, like a holiday potluck, where everyone contributes food instead of gifts.
11. Cook at Home and Plan Holiday Meals
Dining out or ordering takeout during the holidays can add up quickly. Planning and preparing holiday meals at home is a cost-effective and enjoyable alternative. Create a meal plan, buy ingredients in bulk, and share the cooking responsibilities with family or friends. Cooking extra allows you to have leftovers, reducing the need for additional meals during the busy holiday season. Plus, bulk buying can reduce costs per serving.
12. Be Mindful of Small Purchases
Small purchases, like daily coffee runs, holiday décor, or novelty items, can add up over time. Before buying these small items, consider if they align with your budget or if they’re necessary to the holiday experience you want. If you love holiday-themed items, try buying them after the season when they’re deeply discounted, and save them for next year’s festivities.
13. Plan Ahead for Next Year
Saving money this holiday season can also mean planning for the future. Start a small savings fund or look out for off-season discounts on items you know you’ll need next holiday season. For example, decorations and wrapping paper often go on sale in January, so stocking up then can save you money next year. Set up an automatic transfer to a holiday savings account each month. Even small contributions can add up to make a big difference by the time next year’s holiday season rolls around.