‘Tis the season to shop until you drop-or until you go broke. But you don’t have to overspend.
There’s no need to rack up a huge credit card bill or go into debt to cover your holiday expenses. Enjoy a stress-free season by keeping your spending in check with these six tips.
1. Create a detailed list of all your expenses
Don’t leap into your holiday shopping armed with nothing but a credit card. Before you hit the mall or start browsing, draw up a complete list of every holiday expense you can anticipate. Include all gifts, holiday décor, travel expenses, charitable donations and food costs. Keep it as trim as possible by cutting out non-essentials and using stuff you have in storage from previous years. Bonus points for any homemade gifts!
2. Determine how much money you can spend
Once you have all of your expenses listed, determine an amount that will cover everything and that you can realistically afford. Ideally, this money should come from funds you’ve set aside just for this purpose.
3. Divide and conquer
Assign specific amounts of money in your budget for each expense category and for every person on your gift list. For example, allocate $300 to spend on your preteen daughter’s gifts and $100 to donate to charity this season. Again, make sure your numbers will work from both a financial and practical perspective.
4. Track as you shop
You’re ready to hit the mall! As you shop, keep a careful account of how much you’ve spent for each person and in each expense category. It’s best to use cash or a debit card and review your budget often to ensure you’re staying on track. This way, you won’t be hit by “Santa shock” come January when you need to pay those credit card bills.
To make this job easier, use an app designed for this purpose. A common favorite is one called Santa’s Bag. It allows you to set a budget for each person on your list and makes tracking your spending super simple. It will even warn you when you’re nearing your preset spending limit or when you’ve gone over budget.
5. Shop smartly and spend less
Keep your spending to a minimum by following these hacks:
- Use shopping apps to get your favorite retailers’ best deals and coupons delivered right to your phone.
- Follow the 24-hour rule. Before purchasing anything on the expensive side, wait 24 hours. Sometimes, after sleeping on it, you’ll find that you don’t need to buy that pricey gift after all. Or, you might find the same item somewhere else at a lower price.
- Shop online on Tuesday morning. Research shows this time of week is when you’ll find the hottest online deals.
- Shop with a friend. Take advantage of BOGO sales by splitting the cost of a single item with a friend. You will each get to take one item home from the purchase.
- Shop late. Everyone likes to get an early start on holiday shopping. However, prices actually drop in the weeks leading up to Christmas as retailers seek to clear out their holiday inventory.
6. Let McCoy FCU help
If you’re having trouble covering your holiday expenses or want to get a head start on next year’s costs? Let McCoy FCU help! Here are three ways we can take the financial stress out of the holiday season.
- Skip-a-Payment. We get it. The holidays are crazy expensive. That’s why we allow qualifying members to skip one payment on a loan [or credit card] this time of year. It won't hurt your credit, and you won't default on the loan. It’s extra breathing room, just when you need it most!
- Personal Loan. If you can’t come up with the holiday funds you need, consider taking out a McCoy FCU Personal Loan. Our fantastic terms and affordable rates make it a no-brainer!
- Holiday Club Account. Spread the cost of the holidays across the year with an account created just for that purpose. You’ll set aside a little bit of money each month into your Holiday Club Account. Then, when the next holiday season rolls around, you’ll have all the funds you need on hand.
Don’t let financial stress ruin your holiday cheer this year.
Follow our tips to keep your spending down and stop by McCoy FCU to see how we can help!
