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The smells. The displays. The music. The sales. All these add up to spending more money than you had planned on during the holidays. Even when you are trying very hard to cut back and stick to a budget, there are various ways you are overspending without even realizing it.
US News has an article about 11 ways you waste money during the holidays. They are:
- Hosting a holiday feast. Christmas usually becomes a repeat of Thanksgiving with a lavish feast that isn’t always eaten and gets thrown out, elaborate table decor, plus all that preparation and cook time that could be spent enjoying the day with family. Instead, consider turning the meal into a potluck. Invite relatives and friends to bring their favorite dish and everyone shares in the food and the cost.
- Shopping without a strategy. Don’t wander the mall or stroll into a store looking for a gift. Have a plan in place and know your prices. Have a budget, a wish list and look for sales and coupons. Don’t impulse shop. Those impulse purchases usually aren’t that great of a deal.
- Putting everything on a credit card. It is possible to stay within your budget yet overspend at the same time if you use your credit card exclusively to pay for everything. You could end up overpaying through interest if you don’t pay off your balance right away. Your credit score could also take a hit if you end up with too big of a debt-to-credit ratio. Use credit in moderation.
- Going overboard with Christmas lights. You don’t need massive light displays in your yard to look festive. And you don’t need your electric bill to skyrocket as a result. Opt for simple, colorful decorations. As it says in the article, “Remember, Santa doesn’t need lights on the ground to guide his sleigh; that’s what Rudolph’s nose is for.”
- Buying gift cards at full price. While gift cards are a great gift for someone who is hard to shop for and they help you to spend the exact amount you had budgeted for that gift, you don’t have to pay full price for them. Watch ads for sales on gift cards, like iTunes. Or buy them at your favorite warehouse club store, for example, BJ’s has them on discount everyday, not just during the holidays. Another idea is to check out gift card exchange websites like Gift Card Granny, Cardpool, CardKangaroo, CardHub or GiftCardRescue. You can find fully loaded or partially used gift cards for reduced prices on these websites.
- Sending too many greeting cards. It’s always nice to get heartfelt holiday cards in the mail from friends and family. However, when you are sending them it’s not fun to get them returned because of a wrong address or to send them to someone who never responds back. The cost of traditional cards or photo cards along with stamp prices can add up. Consider sending them to only your closest friends and families and send the rest thoughtful e-cards or a Facebook message.
- Buying overpriced wrapping paper. Wrapping paper covers the gift for only a short while, gets shredded up as the gift is opened and then thrown away. Why spend a lot of money on it?
- Paying full price for a rental car. If you are going on a roadtrip for the holidays, don’t pay full price for a rental car. Reserve it ahead of time and save the money. Last minute costs more. Also, when reserving online, google discount codes and use them. You can save a lot more money.
- Being too charitable. The holiday season is always the biggest time people donate money to charity. Especially if they want to get a tax deduction for it. But be selective in the organizations you give to, budget how much you plan to give to charity, and stick to it! If you drop a few dollars into the bucket every time you pass someone ringing a bell, next thing you know you have overspent what you can reasonably afford to give. It’s great to be generous during the holidays, but stick to your plan and give what you intended.
- Overspending on shipping. Most online retailers will have free shipping days during the holiday season. Sometimes they only last a day, sometimes a few weeks. Don’t buy too early or you will miss out on the free shipping offers. There are also some websites that offer free shipping year-round. Click here for a list of 72 of them.
- Splurging on yourself. According to the US News article “More than half of all shoppers surveyed by the National Retail Federation plan to splurge on an item for themselves while they’re out shopping for others. Dipping into your gift budget to indulge can throw off your spending plan or even cause you to rely on credit cards to finish up your shopping.” Put your gift recipients first. Maybe someone will buy that gadget that caught your eye as a gift for YOU. Or it might hit the discount racks after the holidays.
So, don’t waste money during the holidays! Make a budget and stick to it. When Jan 1 comes around, you will be glad you did!
For the full article from US News, click here.
