7 Amazing idea’s everyone should know to save money on Christmas this year. Buying Christmas gifts can put a lot of pressure on the average American household’s expenses each year. The average person spends over $800 while not cash flowing that in their budget which results in incurring debts for lack of planning.
Buying gifts on credit is not the answer that is taking an immediate problem and spreading it out over several months or years depending on the amount you spend and how long it will take you to pay it back. Think about it this way, if you had to the bank and get a loan to buy gifts it would be a lot of work.
You would have to take time off work or try to go on your lunch hour, meet with a banker discuss why you would need the money, show your proof of income and expenses, then wait for underwriting to review your financial position and approve or deny you. That seems like a lot of work, right?
When you use a credit card it is convenient, you do not have to take time away from your life you just swipe and go. However, what you do not realize at the time the money you borrow is not only has to be paid back it comes with an interest payment.
The average credit card rate is 20%, so you spent $1000 on your credit card for gifts with interest it is costing you $1200. Knowing this would you still want to charge that $1000 for gifts?
Instead of borrowing more money than you can afford I have some idea’s on helping you cash flow your Christmas shopping and save money this year.
It all starts with a budget plan and action. Here are some amazing ideas on how to save money on Christmas this year.
1. Make a List of People That You Need to Buy A Gift For
This is a time to take a hard look at who you need to buy a gift for. Make a list of priority people first like your children then everyone else thereafter. The reason being is you might not be able to purchase presents for some people further down your list if your budget will not afford it.
If you always buy for all your cousins or aunts and uncles maybe you could do a family gift instead of individual gifts. Boards games, movies, dinner gift cards. There are lots of family theme gift idea’s out there.
2. Determine Your Budget
Look at your current financial position and determine exactly how long before Christmas and how much you can save by December 23rd. Knowing the total budget can help you figure out how much you can spend on each person or family.
If you run out of money in the budget, then you might consider free gifts versus buying something.
Challenge yourself and make sacrifices to save everything you can before the deadline. No date nights, no eating out, no coffee stops, no movies every little amount can add up over time.
3. Re-Gift Something You Own
Look around your house did you get a blender last birthday you never opened? Do you still have a scarf you got on clearance last year with the tag on it? Regifting items that you do not use only solve your gift budget it also helps declutter your home.
Go on a scavenger hunt around your home and garage and look for new or like new items that can be regifted to someone else that could use them.
When I worked in corporate America, I use to get gifts from people all the time, I would take and recycle those gift cards, candy boxes, goodies boxes to other people.
Secret Santa is another way you could reuse to regift if you have participated in those. If your company does secret Santa and they ask you to list things you like for a gift, put items that are on your list to buy someone. It is a win win you get to participate in the company fun, and you get the items you need for someone on your gift list.
Just ensure you do not give the gift to the person who gave it to you, that would be embarrassing, unless it is a white elephant gift then it would be funny.
I got a white Christmas tree from my mom when I was 21 and moved out on my own, we had this tree in our living room every year when I was growing up. I decided I would put it in the white elephant gift exchange for Christmas one year, as funny as it was, I ended up with that tree that same gift exchange. 21 years later and I still have that tree.
4. Make A List of Gifts for The People on Your List
See if there was anyone on the list you could check off with the items from your home or work. Then you can see who you have left to get gifts for. Look at what your allowed budget amount is and see if it is enough to buy gifts for everyone, if it is not then you should consider home made gifts or not giving them a gift this year.
If it is co-worker’s or friends that get cut from the Christmas gift list you can kindly explain to them that you can’t afford to purchase them gifts this year and that you prefer they don’t purchase you anything either.
5. Purchase Discounted Gift Cards
Discounted gift cards can really help you save on gifts. You can look online at raise.com and see if they have any gift cards that you can use to save money. Every penny counts when you are on a budget the $10 saved now can be used later another gift.
A lot of places also offer a deal if you purchase x dollar amount then you got x amount free. Take advantage of it if you can.
6. DIY Food Gifts
If you have stretched your budget as far as it will go, and it is just not enough. Then you should consider do it yourself gifts. These kinds of gifts do not cost a lot of money they just take time. You could make homemade frozen dinners, bake some cookies or a cake, fudge, banana bread loafs, or salsa are just a few ideas for making food a gift.
DIY gifts can save you a lot of money, especially if you create bulk gifts. Some homemade hot cocoa ingredients in a cute Santa jar, a dozen of tamales wrapped up in a fancy snowman case, or even a yearly birthday calendar for grandma can mean much more while you are saving money this Christmas.
7. Gift A Service
Do you have a talent of playing piano maybe you could gift piano lessons to your friends child. Do you own a house cleaning business then offer a free house cleaning. Maybe you own a catering company you could offer to provide meals for 1 or 2 days.
If you have a service that you could gift for Christmas, then you could save some money for Christmas.
Final Thoughts…
The Holidays should be about being with family, enjoying each other’s company and being present.
The holidays are about being with family and friends.
It should never be about giving the most gifts or expensive gifts. Be honest with those around you that are broke or have debt and that needs to be a priority. Spending quality time should be what is most important.
Who cares what other’s think anyway? What does Dave Ramsey say, “being weird is ok”.
There are tons of ways to save money for Christmas this year use these 7 amazing idea’s to save on christmas this year.. Be patient with yourself and realize it is ok to spend less or nothing at all. This is your life and your finances, no one works for your money or pays yours bills.
If you plan you will start the new year off right with no debt or regret from buying Christmas gifts.
I would love to hear your idea’s for saving money this year for christmas, leave a comment below and tell me all about it.