25 Holiday Budgeting Tips to Keep You on Target

Holiday shopping can be a difficult time of year and it can be even harder on your budget. Keep your sanity, and get into the holiday spirit, with these 25 holiday budgeting tips to help you stay on target.

1. Plan ahead

It’s easier to stay on your budget if you plan for Christmas expenses all year long. You can set up an account to put money into throughout the year. If you haven’t done this in 2014 you can do it starting next year.

2. Determine what you can spend

Consider your monthly income and expenses. The amount you have to spend is what you have left over after paying your expenses. If you’ve been saving all year, great, you can have a larger holiday budget. However, if you only have a couple months’ worth of savings, you’ll want to determine a stricter holiday budget.

3. Make a list

Make a list of everyone you need to shop for and how much you can spend on each person. If you have a list you will be focused on exactly what you need to get and how much you can put towards the gift.

4. Trim the list

Even if you have a budget you could easily overspend. Try implementing a secret Santa gift exchange with your family so you only have to buy one present instead of multiple presents.

5. Leave the plastic at home

If you bring cash it’ll be easier for you to track how much you’re spending, thus making it easier to stay within your budget. Debit cards can be okay, but be sure to leave the credit cards at home.

6. Look for credit card discounts

Some credit card companies offer discounts at certain stores during the holidays. Although it’s best to utilize cash during this shopping season, see if your credit card has any outstanding deals available. If so, set that amount of cash aside for the item you’re going to purchase and utilize the credit card discount.

7. Team up on gifts

One of the easiest ways to get the biggest bang for your buck is to consolidate your money with your friends and family. Pool your money and get the perfect gift(s) that stay within your budget.

8. Cut back over the year

Even the smallest things you cut back on throughout the year will add up. If it means packing one extra meal for lunch or not buying coffee one or two days then do it. It‘ll all add up at the end and you’ll have more to put towards the holidays.

9. Bake your gift

Who doesn’t like freshly baked goodies? If you’re tight on money or you just love to bake, whip up a big batch of Christmas cookies, gift wrap them, and send them to your favorite people.

10. Look back at last year

One way to come up with a budget is to look back at what you spent last year during the holidays. Examine what you liked and didn’t like about your spending and correct it this year.

11. Start comparing prices online

If you have some big ticket items on your shopping list this year start looking around at prices now to gain a better understanding of how much you’ll be spending and where to find the best deal. When looking online be sure to weigh benefits such as free shipping, coupon codes, and other incentives that decrease the cost of the item you want.

12. Consider giving homemade gifts

If you like to be crafty, Christmas is your time to get creative and personal. Make a list of the people you need gifts for and which ones would appreciate a homemade gift. To save more try buying your crafting supplies in bulk and taking advantage of discounts at craft stores and thrift stores.

13. Use coupons

Look for and utilize as many coupons and deals as you can. From actual presents to buying food for the holiday feast, many stores send out coupons. Take advantage of these discounts to save a few bucks.

14. Try trade-ins

If you have some old technology you don’t use and you can make a buck or two from it, go ahead and sell it. This not only cleans out your home but it adds a little extra cash to your holiday budget.

15. Set spending limits

Making a budget is obviously the first step, but the next is determining how much you’re willing to spend from your savings. If you set a limit ahead of time you know to stay away from items outside of your price range.

16. Decide where to shop

Figuring out what you’re going to buy is almost as important as figuring out where to go to purchase it. If you start early you’ll have time to compare prices or you’ll at least have time to ask for a few suggestions from your friends of where to find reasonably priced items.

17. Know the timing

Prices fluctuate significantly over the holiday season. If you know when stores start cutting their prices or when the best deals will be, take advantage of these prices. During these times you may have to choose between price and selection. It may be worth the risk if you want to save a few bucks.

18. Understand return and exchange policies

Return policies will vary per store. Be sure you understand each store’s policy when it comes to exchanges, returns, and shipping items back. If you have to pay for shipping in order to return the item, be aware of this.

19. Don’t underestimate gift cards

People have a tendency to say gift cards are extremely impersonal. However, if the person you’re shopping for loves music, perhaps the perfect gift would be an iTunes gift card. If the card will work, take advantage of the ease of it and your ability to choose an amount in your budget.

20. Keep extra gifts on hand

It’s happened at least once or twice to everyone where you receive a gift unexpectedly and then you have nothing to give in return. Try keeping a few picture frames, books, or even a couple jars of jam or homemade sugar scrub in your house to give in those awkward situations.

21. Don’t wait until the last minute

Waiting until the last minute adds stress and can sometimes mean you missed the opportunity to shop around for the best deals. Start looking for deals in advance and try to get your shopping done early so you can relax much sooner.

22. Give a family basket

Instead of buying everyone a gift, buy a basket and fill it with inexpensive items everyone would enjoy. This helps decrease the cost of gift giving and increases the opportunity for you to include gifts everyone can enjoy.

23. Recycle

Try purchasing gifts from secondhand stores, or finding items around your house you don’t use or want. Then you can host an elephant gift exchange with your friends or your family. Elephant gift exchanges are cheap ways to have a good time.

24. Give back

Instead of buying gifts this year for your loved ones, sponsor a family in need through a church or local non-profit. You can also choose to buy gifts for children placed on angel trees this holiday season. Doing this allows you to give only as much as you can afford.

25. Give innovative gifts (give your time)

If you don’t have much to give this season give a homemade coupon or two to your loved ones. The coupons can be redeemed for a night or two of babysitting, or one massage. The coupons have a lot of flexibility and many times, your time is more valuable than your money.

It’s the thought that counts

There are numerous holiday budgeting tips to keep you on target this year, but remember no matter what you do this holiday season, it’s the thought that counts.