Steal these money experts’ tips to save on holiday expenses
According to CNET’s holiday spending survey, most shoppers plan to spend the same amount on holiday shopping this season as they did last year, but about a third plan to spend less.
Still, spending can easily go astray, especially during major shopping events. Financial writer and podcaster Miranda Marquit learned that the hard way. During the past few vacations, she had no plan for her holiday expenses. Instead, she made purchases at events or sale popped up, making the holiday even more financially stressful.
Since then, she has found savings tools and strategies that can help reduce costs. Here’s how she does it while minimizing stress and sticking to her budget.
1. Look at last year’s holiday expenses
Marquit always starts by reviewing the previous year’s holiday expenses. She looks at bank statements to estimate how much she has spent. She then draws up a realistic budget and plan.
Looking at how much you spent last year can be difficult, but it can help you better prepare for how much you plan to spend on gifts, travel and other holiday expenses. It can also help you strategize for the holidays. For example, if you spent too much on holiday decorations last year, or if you have a high energy bill because you left Christmas lights on for a month, you can set aside more money in advance or think about redecorating to cover the bill. decrease.
2. Start saving any amount
You don’t need to set aside a large amount of money for your savings. Every contribution adds up when you take into account costs such as gifts, food and wrapping. If you don’t have any money set aside this year, try to start saving for the holidays as soon as possible. Marquit initially set aside $10 a week to start her vacation fund, but as her income increased, she was able to save $100 a month.
She usually doesn’t exceed what’s in her fund. This year she will use her holiday money for entertainment and gifts.
3. Consider alternative gifts for the holidays
It’s hard to stick to a holiday budget with your loved ones, but Marquit makes it work. In her case, not everyone gets a gift. Her cousins exchange gifts with a spending limit, but her friends don’t exchange gifts at all. They’re having a holiday potluck.
In addition to the potlucks, Shang Saavedra, a CNET Money expert, shared a few ways to avoid gift debt by leaning more on your skills and less on your wallet. For example, giving the gift of coupons for babysitting or dog walking is an inexpensive, thoughtful way to keep costs down.
3. Earn cashback rewards
This year, Marquit is leaning further credit card rewards And cashback apps to increase her holiday budget. She earns money from it all year round Swagbucks by completing tasks such as surveys or games. Marquit says these rewards can amount to Amazon gift cards, which she uses to buy presents. For example, she could use rewards to purchase an Expedia gift card to help her brother and his wife plan their next trip. She also monitors offers throughout the year to redeem rewards at a higher rate.
“Using the rewards I save throughout the year means I don’t have to dip into my vacation fund as it continues to grow,” she said.
4. Use a browser extension
Marquit uses browser extensions, such as Capital One’s shopping portalto find savings on the gifts she buys. She will receive a notification on the desktop when the site she is on offers rewards. Sometimes she can stack rewards for even more holiday savings. However, Marquit recommends choosing only one rewards program because the browser extensions you can’t always claim two rewards for one purchase. She recommends choosing the program that offers the best possible reimbursement.
There are other shopping browser extensions that CNET recommends, including Honey, Offers and RetailMeNot.
Look at the holidays differently
Last-minute holiday entertainment and great deals on gifts can easily lead to more debt. But there are plenty of ways to celebrate the holidays differently within your budget.
“I think you might be surprised when you start talking to people and you find that many of them are just as fed up with the overconsumption during the holidays,” Marquit says. “They just want to enjoy the company of loved ones.”
