Tip No. 1: Reduce your regular budget expenses
Cut back regular costs in your household budget to increase the cash flow you have available for holiday spending. Take your lunch to work, cook at home instead of dining out, and don’t buy clothes or home goods (put then on your list). You can also plan ahead to avoid expenses like car maintenance or vet visits for your pets around the holidays.
Tip No. 2: Always shop with your list
Once you complete your holiday budget, take the shopping list with you wherever you go. Save it on your smartphone so it’s always with you. And make sure you have it even if you shop online or through an app. Retailers are very good at putting online ads in front of you to get you to spend more. Stick to your list and avoid impulse purchases.
Tip No. 3: Put your credit cards on freeze… literally
We’re not kidding! Take your credit cards out of your wallet and find a big glass or jug you can fit them in. Then fill it with water and stick it in the freezer. With your credit cards stuck in ice, you won’t be able to use them to overspend. At the very least, you’d have to wait until the ice melts to get to them. That gives you time to reconsider using them, which can help keep you on track.
Tip No. 4: Take one name off your gift list
Buying individual, personalized presents for everyone that you know is expensive. If you have more than 10 names on your gift list, it’s probably time to cut back. Review everyone you’re gifting and take one name off the list. If you really can’t find anyone to cut, then it’s time to consider bulk gift options or handmade gifts.
Tip No. 5: Make travel arrangements early and bundle
Early reservations reduce the cost of airfare and accommodations. Bundling flights, hotels and car rentals usually gives you an even better deal. Start comparison shopping for your flights early and use Consolidated Credit’s Tips for Cutting Air Travel Costs to get the best price possible.
Tip No. 6: Find a teen for pet sitting and house sitting
Instead of paying two different professional services to take care of your house and pets while you’re gone, find a responsible teenager in your neighbourhood who wants to earn some extra cash. Show them everything they need to take care of while you’re gone – house care, watering plants, feeding and walking pets. Paying a teen will cost less than professional services and let you group everything together.
Tip No. 7: Rearrange and swap out decorations
If you love to decorate for the holidays, you know costs can get out of control quickly. Instead of buying new stuff this year, rearrange everything that you have already. You can also set up a decoration swap party with friends or family that don’t live in your neighbourhood. Each person brings items they’re willing to trade. Then you swap stuff out and everyone gets to have “new” decorations. Just make sure to agree, in advance, how you want to cover costs for damaged or broken items – accidents happen.
Tip No. 8: Ask guests to chip in
This applies to meals, parties and extended family visits. For meals and parties, ask your guests to either bring a dish or bring the hard liquor they wish to drink; you provide mixers and nonalcoholic beverages. Additionally, if your house looks more like a hotel during the holidays, as your guest to chip in a few bucks to cover costs for their stay. A little bit can help with your budget and it’s still much cheaper than them booking a hotel.
Tip No. 9: Make a new tradition
Instead of spending all your energy focusing on the stuff you need to buy, focus on creating a new family tradition. Set up a family holiday movie night, plan a bonfire, pack everyone into the car to take a Christmas light tour, or volunteer as a family to help a charity, such as Toys for Tots. Planning an inexpensive new tradition will help you make memories instead of amassing debt.
Tip No. 10: Don’t ignore your balances until the New Year
If you end up charging anything for the holidays – whether it’s on purpose to earn rewards or because you ended up overspending – don’t decide to ignore your balances until the New Year. Once people start running up balances at the holidays, the instinct is to ignore the debt until the holidays are over. You end up making a conscious decision to charge whatever you need and worry about the debt next year. But that’s a recipe for a bad start to your New Year.
Instead of ignoring your balances, keep track of them and make sure they stay manageable. If you see that the total is getting too high for you to repay on your own, don’t wait to get help.