It is the most exciting yet the most dreaded part of the year. It is because where you expect your friends and family at the destination, the spending surge. It is the primary cause of worry for most households in the country. From planning gifts to decorations, everything adds up to the expense bar. Stores seem crowded and your spending increases due to the low availability of certain items in the market.
Some individuals get desperate enough for cash, to tap 401(k). It may not prove the best decision. It is because tapping it before maturity impacts the returns you expect.
In these situations, one asks –
“Are there any possibilities to reduce expenses on Christmas shopping?”
Well, yes, there is.
However, you must prepare 3-2 months ahead for that to rationalise. Alternatively, you may spot yourself in debt in the new year. The blog lists ways to curtail spending by planning the preparations before Christmas.
How to plan finances for stress-free Christmas celebrations?
Even though one has 12 months to plan, one waits until the last minute. However, other expenses and high costs of living are reasons behind the delay.
Most individuals wait until the last minute to grab the whopping discount trails. It may help you reduce the price of some commodities, but rising anxiety elevates other health issues.
Thus, the best time to plan is at least 3-2 months before the due date.
If you are concerned about:
“How to plan Christmas with low savings and salary?”
The blog may help. It lists the ways to save amid the rising costs of living and meeting other liabilities.
Let’s begin!
1) Analyse your household budget
The budget differs according to the lifestyle of individuals. For example, a budget for a homeowner differs from a tenant. Tenants share more liabilities or additional liabilities like frequent repair work and rent. Alternatively, homeowners share expenses like groceries, big-ticket purchases, credit cards, etc. No matter what, a tenant finds it challenging to save much.
Thus, one must analyse the household budget accordingly. Check the total savings or disposable income you have after meeting the liabilities. Analyse the amount you want to save from it. You will get the amount you can spend on Christmas shopping. Yes, it may not be easy initially but will be helpful.
2) Create the guest list
It is one of the most important aspects of budgeting. Unless you know how many individuals you can expect on the Christmas dinner, you overspend. Thus, include the near and dear ones from your family, friends and neighbours that you want to invite.
Alongside, keep some flexibility for the surprise guests and someone you want to wish to live abroad. The list would help you calculate the estimate or the approx. dinner and the costs of the gifts. Eventually, it reduces the extras you spend on the “expectations” or “events” that may never happen.
3) Begin shopping for gifts in August
Though there are Black Friday deals near Christmas, getting the needful gets challenging. The reason is – Crowd and the low availability of items. Thus, instead of waiting until Black Friday sales to get gifts for loved ones, use August. You may not believe but big e-commerce sharks like Amazon and eBay begin their Christmas sales in August and goes until October.
You can spot multiple categories to shop your gifts from. Be it perfume, toys, gadgets, or appliances, you can get everything at bare minimal prices. It will help you tick off one thing from the Christmas checklist and reduce the stress associated with last-minute bargaining or the fear of missing out.
4) If you borrow money, do so carefully!
According to a source, around “50% borrow money to plan Christmas and 20% get indebted later”. Thus, if you want to borrow the amount, do so at least 2 months before Christmas. Chances are- you may get lower interest rates than at a later part of the year. However, be careful about the loans to borrow.
Check your credit score before doing so. If it is low, explore only options you can realistically qualify for. Options like Christmas loans for bad credit scores may help you with your needs while keeping the costs low.
You can use the facility for anything related to Christmas like- buying gifts, decoration material, a Christmas Tree, chocolates and games for kids, new furniture or a house revamp. Moreover, easy to manage debt payments making it less stressful even by the new year. It is far more affordable than credit cards and does not leave you with a huge bill by the month's end.
5) Make a menu plan and stock up on the sale
If Christmas stands just 2 months away, stock up on the items. It could be anything related to Christmas dinner or decorative pieces. Yes, you can spot some consumable items with a lasting and preservative date. It saves you from spending 30% extra if you buy it near Christmas or just 3 days before. Aspects like- ingredients, powders, and packed items like butter and cheese last at least 2 months.
Moreover, you can even check the microwave. Does it require repair? Microwave is the second-most used thing after the decoration tape. Thus, ensure that it works well for you to prepare lunch and dinner effectively.
6) Sell unwanted items
Christmas usually implies that you and your family receive new gifts and vice versa. Thus, it is high time to get rid of the things you need no more. For this, you can eliminate unused items like- clothes, gadgets, books, cushions, toys, etc. You can either sell it on eBay or other sites. Moreover, consignment shops for children are a good spot.
If the items are in sound condition, you may spot good money for the same. Eventually, you can use the money to finance bills or remaining Christmas preparations like lighting or decorating the Christmas Tree.
Well, if you still need a small lump sum to finance your needs, check options like payday loans with no credit check from a direct lender respectively. You can get it quickly on your income proof. Use it for short-term and emergency expenses like clearing bills or finance small Christmas preparation mishaps. It is the best way to finance your short-term needs quickly and without worries.
Bottom line
Financing the Christmas requirements requires a definite budget. It helps prevent overspending and getting into a debt trap later. These tips may help you prepare one and finance needs in the most budget-friendly way. For additional money push, external options like loans may help.
