5 Holiday Budgeting Tips to Save You Money

How much of the $52 billion spent on holiday last year shopping can you lay claim to? According to the number crunching elves, the average American will plunk down $804 for all their holiday shopping. That’s not a crazy amount of gifts. However, it doesn’t reflect the total amount of times you’ll be dipping into your wallet between Black Friday and Christmas Eve. Yes, the holidays are upon us and it’s the one time of year when your household budget goes flying out the window like so many of Santa’s reindeer. Before things get too crazy, it might help to project ahead for all those potential holiday wallet leaks. Check out these 5 holiday budgeting tips to save you money this holiday season.

Holiday Budgeting Tips – #1: Your Holiday Dinner(s)

This one is a big holiday budgeting tip – if you’re the lucky one in the family who hosts Thanksgiving or other holiday dinners, then you know how one meal can blow a hole in your entire food budget for the month. Things can become further complicated when you have to accommodate for all the gluten free, lactose intolerant and “I’m on a diet” restrictions your loved ones will put on you. One way to minimize the impact on your wallet is to invite folks to contribute a side dish. In other words, when one of your guests asks, “What can I bring?” give them a specific item. You can even provide the recipe if you like.

Holiday Budgeting Tips – #2: Your Self-Gifts

You spend the time going from mall to mall battling shoppers to find the perfect gifts for your family and coworkers. You devote several late night hours to wrapping those gifts. You make sure all the decorations are hung with care. You put all the stamps on the Christmas cards. You bake dozens of cookies without licking one spoon. Add it all up and it’s clear you deserve a special reward. Instead of waiting for a Secret Santa to give you what you want, why not go out and self-gift? Nothing wrong with that unless you go a little crazy with cash. Maybe wait until after the holidays when you can cash in some gift cards and find even better bargains.

Holiday Budgeting Tips – #3: Your Energy Bills

If decking the halls is your thing, then you can anticipate that your home energy bill is going to spike over the holidays. You might not feel that pinch until after the first of the year. That is also the time you’ll be paying off a slew of other holiday bills. Does this mean you have to pull a “Grinch” and turn off the lights? Not at all! There are some great ways to cut back on your holiday light bills. Of course, it starts with having a home that is operating at peak energy efficiency. Maybe this is the year you let the power of the sun in! Who knows? By this time next year, you could be selling back some of your stored up solar energy to the electric company. That will certainly put more money in your wallet.

Holiday Budgeting Tips – #4: Your Special Holiday Outfit

What special holiday occasion will be on your social calendars this year? The office Christmas party at a swanky hotel? A New Years gala? The run in with an ex at a holiday party? Those are all perfect excuses for lining up a special holiday outfit. Before you leap into the Prada you might want to consider what is already in your closet. Maybe you bought an outfit last year and only wore it once. Perhaps renting a dress is an good option. Bottom line: You don’t want to blow your budget on a single outfit that can only be worn at a fancy party. On the other hand, nothing beats an ugly Christmas sweater from the thrift store.

Holiday Budgeting Tips – #5: Your Credit Card Interest

Savvy shoppers know how to find the bargains. That might mean camping outside of Best Buy on Thanksgiving or going into shopping overload on Cyber Monday. No matter how much shopping you do, if you’re swiping the credit card, then you’re also piling up the interest. Something that appears to be affordable could end up costing a lot more when you factor in all that interest. Yes, we can all embrace the idea that the credit card companies are the ultimate Scrooges. However, we still have to pay. If you’ve got a good payment history, then try to negotiate a lower rate before the holidays. At the very least, try to keep those cards with the higher rates out of your wallet!