Staying Within Your Budget During the Holidays

This can be an expensive time of year. Between buying gifts, traveling to see family and buying food for meals and parties, it’s easy to see why so many people don’t even keep a budget for the holidays. Those are the same people who spend months and sometimes years paying off their December debt.

You can get through the holidays without going into debt. Here are some money-saving tips to help you think outside the box while staying inside your budget.

Reward Points and Cash Back Bonuses

Check with your credit and debt card companies to see if any offer reward points or cash back bonuses. Those are dollars and prizes you have earned by using your cards. Use them to help pay for gifts this holiday season.

Skip a Payment Programs

Many financial institutions offer the option to skip loan payments during specific months of the year. Interest still accrues on your loans that months, but that money is usually a drop in the bucket compared to the debt you could accrue by shopping with credit cards.

Free Gift Cards or Store Bucks With Purchase

Shop at stores offering free gift cards or store dollars when you spend so much money. Give those free gift cards as presents, or use them to pay for other gifts.

Re-Gift

If you received a present you’ve never even opened, wrap it up and give it to someone else who might love it. There’s nothing wrong with re-gifting if it’s something you won’t use and something you know another person will use.

Give the Gift of Time

Gifts don’t always have to fit in a pretty package. If you don’t have the money to spend on gifts, give friends and family gifts that save them time or money: a homemade certificate for free babysitting, a free home cooked meal, free house or yard work, etc. Google “free gift certificate templates” for professional looking certificates you don’t have to pay for or design yourself.

Potluck Parties and Holiday Meals

Save money by asking guests to bring part of the meal. Tell them you’ll provide the meat and beverages if they each bring a side dish or dessert. This works for holiday parties and holiday meals.

Donate in Lieu of Gifts

Ask your circle of friends or co-workers to skip a gift exchange this year and use that money to buy a holiday meal for a needy family or adopt an angel from the Salvation Army. Buying part of a gift for someone in need saves you money and goes a lot further than buying a gift for each of your friends or co-workers.

The people who love you most do not want you going into debt just to buy them a gift. Make a budget and stick to it. Most importantly, if you can’t afford gifts this year, be honest with people. They will understand.