7 Ways to Rein In Holiday Spending

With a little planning and restraint, you can enjoy the holidays without blowing your budget.

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You probably don’t want to start the new year with a big credit card bill. Pacing yourself during the holiday season is a great way to keep sticker shock down.

With a large shopping list and entertainment to plan, costs can skyrocket quickly. But with some planning and self-control, you can enter the new year at or under budget. Here are seven ways to rein in your holiday spending.

1) Avoid Retail Marketing

According to the National Retail Federation, its annual holiday forecast predicts spending to be between $1.01 trillion and $1.02 trillion. Last year’s spending was $976.1 billion.

To achieve these numbers, retailers will heavily advertise and offer “great” deals. Luring you to spend extra money is the goal. But keep in mind, if you spend it on items that you don’t really need, you’re not saving.

If you have your gifts purchased, don’t pick up “just one more” because it’s on sale.

And while you’re at it, skip the store card offer. Offering you 10–20 percent off your purchase if you open a store card is a marketing ploy. The interest on the card and potential additional spending will eat up the savings.

Another way retailers advertise to you is through your email. You might have signed up for emails from your favorite store. But these are promotional messages that are made to convince you to spend more. You may end up purchasing items that you didn’t really plan for or need.

You may want to take temptation away by clicking unsubscribe from the retailers’ emails.

2) Find Unused Gift Cards

Have you used all your gift cards? You may have some stashed in a drawer. According to Capital One Shopping, 43 percent of Americans have unused gift cards, totaling around $23 billion in unspent funds.

Look around for your unused or partially used gift cards. You could use them to purchase gifts or re-gift to others.

3) Be Careful of Free Shipping

Most people don’t like to pay for shipping when buying online. Fortunately, many retailers will offer free shipping. But there’s usually a catch. You’re expected to spend a specified dollar amount to qualify for it.

If you’re going to spend the required amount, then take advantage of the free shipping. But try to avoid overspending on items you don’t really need, just so you can ship for free.

4) Cash-Only for Holiday Spending

Withdraw a fixed amount of cash from the bank. Then, only use cash when purchasing gifts, food, wrapping paper, etc. You’ll stay on budget. And the best part is that you won’t have those big holiday bills in January.

5) Take Inventory of Your House

You may already have holiday supplies in your house. Take the time to hunt around your home for wrapping paper, greeting cards, or holiday décor. Nobody is going to care if you use the same greeting card you used last year. They probably won’t remember.

Are there any gifts given to you that you’ve never used? Those items still in the manufacturer’s package may be able to find a home with someone else.

Make it a point to take inventory of all your holiday trappings in order to avoid spending money on duplicates.

6) Track Your Spending

Most credit card companies have an online portal where you can see your spending in real time. Make it a point to check it periodically to see how much you’re driving up that bill.

The same goes for your bank account. If you’ve been swiping that debit card, check your balance and ensure you’re not draining your account. This is especially important if you have impending ordinary bills.

7) Give Gift Cards Strategically

Even though many people forget they have them, gift cards are an inexpensive way to buy a present. For example, instead of buying a $40 gift from a store, buy a $25 gift card to be used at the same store. You save money, and the recipient may end up picking something you didn’t think of.

Buy a few “vanilla” gift cards like the kind issued by Visa or a bank, not from a store. These make great unplanned gifts, and if you end up not needing them, you can use them yourself for necessities.

Check Your Attitude When It Comes to Holiday Spending

Look at the season with clear eyes. A lot of what you spend will be forgotten within days or weeks of the event. Don’t spend without asking yourself if it matters whether you don’t buy something or buy something less expensive?

According to You.gov, one-third of Americans attended a Christmas party at a friend’s or family member’s home. But these parties don’t have to be perfect, especially when “perfect” means spending more money.

Enjoy the season, save money, and reduce stress.

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