Be a Savvy Shopper This Holiday Season

The holiday season is upon us, and the cheer and festive atmosphere can be infectious! Between the lights, music, food, gifts, and spending time with loved ones, it can be the most joyful time of the year. It can also be the most expensive time of the year.

That’s why it’s more important than ever to check your list – and budget – twice! Even as prices continue to rise, there are still many ways to keep your spending in check and put huge smiles on the faces of friends and family.

In this article, we’ll help you become a smarter shopper so that you can keep your finances on track and your holiday joy intact.

Start with a Holiday Budget

Budgeting…we know, bah humbug! Many find budgeting to be such a chore. However, a proper budget is the best way to grow wealth and manage expenses. It’s even more important during the holiday season as costs rise and impulse purchases become the norm.

Use the following blueprint to create a realistic holiday budget:

  • Make a List & Check It Twice:

Begin by listing everyone you plan to purchase gifts for, including friends, family members, coworkers, schoolmates, neighbors, etc. Review your list carefully to ensure you don’t accidentally miss anyone. It’s always wise to budget for an extra present or gift card in case you’re invited to an unexpected party.

  • Don’t Forget the Extras:

The holidays wouldn’t be complete without decorations, parties, activities, and travel. All these items will drain your budget quickly if you don’t plan accordingly. Think back to previous years and detail all the travel plans, festivities, and events you normally attend or host. Then, add these items to your list.

  • Set Your Budget:

Once you have a comprehensive list of everything you need to buy and who to buy for, you can set specific amounts for each person and spending category. Then, use those numbers to build up to your overall holiday budget.

Another option is to review your normal monthly budget. Determine how much extra funds are available to work with. Then, work backward to set specific amounts for each person and category.

Shop the Sales

Extravagant sales and holiday shopping go hand in hand. Between Black Friday, Cyber Monday, and a whole host of other holiday sales, you have countless opportunities to find deals and stack your savings. However, don’t fall into the trap of stalking the sales just because prices appear low. Compare the deals to the items on your shopping list so you can get your gifts at a great price and avoid overspending on other items you don’t need. You can also use price trackers and comparison tools to ensure you’re snagging the best deal possible. Make the sales work for you to maximize your savings!

Cash In Credit Card Rewards

If your credit card comes equipped with a rewards program, consider redeeming your points to help extend your holiday budget. Plus, many cards will offer bonus points on select or all spending categories around the holidays – allowing you to earn even more.

You can cash in your reward points on things like:

  • Cash Back: If your credit card offers cash back, use it to boost your holiday spending! You can add the cash back as a credit on your statement or deposit it into your checking account.
  • Gift Cards: Trade in reward points for gift cards to either purchase items on your shopping sprees or to give as gifts for those hard-to-shop-for folks.
  • Travel: Redeem rewards to cover costs for flights, rental cars, or other travel needs.
  • Hot Items: Snag that smart device or exclusive experience you’ve been eyeing for that special someone on your gift list.

Avoid Shopping Pitfalls

While holiday shopping can be exciting with all the hustle and bustle and cheer, it’s easy to veer into common pitfalls that can derail your joy and your finances. Stay mindful so you can avoid falling into these traps.

  • Waiting Until the Last Minute: Don’t put off your holiday shopping until the holidays are just days away! Getting started early with plenty of time to spare will help you avoid unnecessary stress – not to mention avoiding the crowds of other frantic buyers!
  • Buy Now, Pay Later: As helpful as these services may seem in allowing you to afford things on your list, they can cause you to accumulate more debt than you otherwise would have and leave you with high bills after the holidays. Avoid using these tempting services and instead only spend what you have.
  • Overspending: To help you avoid overspending, set spending limits for each shopping outing or per category (gifts, decorations, travel, food, etc.). Consider leaving your credit cards at home so you aren’t tempted to spend more than you have, and instead, stick to your debit card or cash.

When Necessary, Borrow Smart

If your finances are spread a little too thin this season, don’t immediately start swiping your credit cards. Instead, consider a Holiday Loan. These loans are simply personal loans wrapped up in a fancy package – often with holiday incentives.

While credit cards are convenient, personal (holiday) loans offer significant financial benefits:

  • More Affordable: Most holiday loans will have significantly lower interest rates than traditional credit cards from big banks or store-sponsored cards.
  • Easier Budgeting: With a holiday loan, you will receive a set dollar amount. This feature is one of the best ways to prevent you from overspending and causing financial challenges come January.
  • Quicker Payoff: Unlike credit cards that only require a minimum monthly payment, holiday loans have set repayment terms, like a car loan. The result is that you’ll likely pay the debt off much faster and pay significantly less interest when compared to a credit card.

We’re Here to Help!

Keep the holidays merry and bright by budgeting wisely and shopping smart. With a bit of prep work, you can keep your spending in check and find great deals for everyone on your list this year.

If you want to learn more about our low-rate holiday loans and how they can provide an affordable alternative to credit cards, we’re ready to help. Please stop by any of our convenient branch locations or call 801-451-5064 to speak with a team member today. Happy Holidays!

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