Outside costs might include rent, groceries, and travel and commute payments. If you plan ahead, you can start setting money aside for holiday shopping well before the holiday season gets going. Aim to start saving in the summer to have plenty of shopping funds by November and December.
This will give you a more realistic sense of how much money you’ll be spending during the holiday season, beyond the normal, everyday expenses you have.
You may also want to include people who’ll receive holiday tips, like your babysitter, mail carrier, or doorman. Write your list down on paper or on your phone. Having it handy when you’re out shopping will help you avoid getting distracted by other gifts, which can take you over your budget.
Factor in sales tax as well. Look up the percentage in your state and calculate it for each gift to get the most accurate projection. Don’t feel bad if you’re spending more money on some people than others. It’s normal to give more expensive gifts to people you’re closer to than acquaintances.
Some websites will give you free shipping if you go over a certain dollar amount. If you end up under the magic number, decide whether it makes more sense to add another few items to your cart, or if you’ll save more money by simply paying the shipping costs. Some stores will also have free shipping promotions around the holidays, including free shipping days. Keep an eye out for these promotions—the retailer might announce them a few days beforehand or on the day of.
If overspending is a big problem, try going to the ATM right before you head into a store. Withdraw enough cash to purchase the gift(s) you’re going there for, and that’s it.
You may also want to compare online sellers against brick and mortar stores. Occasionally, the stores will sell the items at a cheaper price. Only buy from legitimate retailers and stores that you’re familiar with. Scammers abound during the holidays, so now isn’t the time to try a new site, even if their prices are lower.
Try making jewelry, bath bombs, ornaments, or candles.
You can even shop for gifts all year round. By the time the holiday season starts, you may not even need to go shopping!
You can also try the 24-hour rule. If you find something that would be a perfect gift, but it’s not on your list, wait 24 hours before buying it. Waiting that extra time can help you realize that the gift isn’t necessary or worth the extra cost.
If the deals are good, this is a great chance for you to save money and finish your holiday shopping early. Don’t worry if you miss this gift-buying window. Some retailers offer holiday sales through December as well.
You can also use cards that give you cash back on your purchases.
