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5 Budgeting Tips to Save Money for the Holidays

Want to save money shopping this holiday season? Today’s guest post by freelance journalist Ivan Serrano begins our countdown to Christmas with these five budgeting tips.

With Thanksgiving only a week away, Americans are already shopping for the holidays.

budgeting tipsAccording to the 2014 Accenture Holiday Shopping Survey (.pdf), the average American is expected to spend $718 on holiday gifts alone. In addition, one-fourth of Americans plan to spend more on holiday shopping this year than they did in 2013.

While many Americans are planning to spend more during the upcoming holiday season, consumers are still looking for ways to save. Ninety-six percent of Americans believe discounts will be important for their purchasing decisions this year according to Accenture.

As you plan for the upcoming season, here are five tips to help you budget money for the holidays:

Set a short term savings goal for the holidays

Although Christmas is just over a month away, there’s still time for consumers to save some extra cash for holiday shopping.

Take a look at your budget and determine where you can cut back on costs. Are you able to sacrifice a meal out with friends? Can you give up your morning latte? Figure out if there are things you can remove from your budget to create more of a cushion for your holiday shopping.

Another thing you can do is set aside $50 or $75 from each paycheck between now and Christmas. While this might not seem like a lot, you’ll be able to accumulate a few hundred dollars over the upcoming weeks.

Compare prices before you buy

To guarantee the best deals this holiday season, it’s essential to compare prices before making a purchase. Especially if you plan on purchasing a tablet, TV, or even a bicycle, it’s important to find out which stores will have the best price.

According to Accenture, 71 percent of consumers are already “web-rooming”. This means people are comparing prices online before they go into a store to make a purchase. By simply doing some research before you go to a store, you’ll be able to get the best value on your holiday purchases.

Take advantage of loyalty programs and coupons

Take advantage of as many rewards programs, coupons, and discounts as possible this holiday season. While it might take a little bit more effort, you might be surprised at the number of holiday savings opportunities you find. You can also take advantage of different apps like Ebates and Ibotta to earn cash back on the purchases you make.

Use credit wisely

If you plan on using credit cards for your holiday shopping, it’s important to create a strategy. While credit cards can be helpful for making large purchases (like a new iPad or computer), it’s important not to make a purchase unless you know you can pay it off in January. Only use a credit card if you plan to pay it off within the next month.

Don’t wait until Black Friday

While it might make sense to wait until Black Friday deals, research by Accenture reveals nearly 20 percent of people have already spent $100-500 on holiday gifts. In addition, 18 percent of consumers believe they can find the best discounts before Black Friday.

This holiday season, do your best to start shopping early. This will give you more time to compare prices and find the best deals on products.

The most important thing you can do this holiday season is to create a budget and stick to it. While it might be tempting to take advantage of last-minute deals, you’ll be thankful you didn’t spend the extra money once 2015 rolls around.

Questions: What other budgeting tips do you have for saving money during the holidays? Have you already started your Christmas shopping?

Ivan Serrano is a business, personal finance and social media journalist living in the Bay Area in California. He can be reached on Twitter @IvanSerrano55.

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Comments

  1. Great ideas. I used to go out for Black Friday, mostly just for the tradition, but it’s easy to get carried away. Why do you think stores offer the doorbusters? It’s to get you in the door to overspend.

    When we do our Christmas shopping, the wife and I take prepaid cash cards with only the amount we are planning on spending. That way, we can’t go over our limit.
    Joseph Hogue recently posted…Are Peer Lending Risks the Old West of Online Loans? Yes!My Profile

  2. I stopped participating in Black Friday’s years ago. My life is too precious to me and I cannot handle the madness. This year I am going to try Cyber Monday for the first time. Wish me luck. Great Post.
    Petrish recently posted…When Debt Finally Meets Budget – HumorMy Profile

  3. The dirty little secret is that Christmas comes on the same day every year. Why wait until it is six weeks away and suddenly worry about how to pay for gifts? We plan in January how much we will spend on the next Christmas and simply put 1/12th each month into an account labeled “Christmas”. Even if someone feels they can’t put a huge monthly amount aside, even $10 a week gets them $520 plus a couple pennies interest. That’s where your latte money should go.

  4. Shop with a list or a specific gift in mind, just don’t hit the store aimlessly looking for gifts. Have a plan! Do you homework online and find the best deals.
    Brian recently posted…Interview Series: Simple Financial LifestyleMy Profile

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