Yahoo Finance Dave Ramsey: 25 Ways To Save Money This Christmas
From decorations and food to gifts and special outings, the holiday season can come with tight budgets, spending issues and potential debt. According to a recent Gallup poll, Americans plan to spend an average of $923 on Christmas and other holiday gifts this year.
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You can reduce the financial strain if you properly plan your holiday shopping, rethink your spending and get creative. On his Ramsey Solutions website, the financial expert Dave Ramsey offered these 25 tips for saving money this Christmas.
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1. Have a Gift-Giving Philosophy
Ramsey recommended thinking about your philosophy for giving gifts. For example, rather than giving gifts to be generous, you might see it as an obligation or a way to show off. Thinking this through could identify potential financial pitfalls and make you reconsider your gift-giving decisions.
2. Have a Christmas Budget
As a big fan of budgeting, Ramsey emphasized the importance of knowing your Christmas spending limit. Once you have that, you can make a separate Christmas budget that itemizes expected expenses. You’ll want to avoid straying from this budget.
3. Monitor Your Holiday Spending
If you’re not careful, your holiday spending could spin out of control. It’s crucial to regularly check your Christmas budget, record holiday expenses and make adjustments if you notice any overspending. Ramsey recommended his EveryDollar app to make this easier.
4. Control Other Expenses
Unless you have a holiday savings fund, you’ll likely need to review your main budget to cut other areas so you have the cash needed. For example, you might cancel certain subscriptions, stop dining out or rethink your grocery shopping habits. At the same time, avoid adding unnecessary expenses during the holidays.
5. Opt for Experiences
Rather than buying gifts, you could decide to just enjoy the time with your loved ones. Ramsey explained that you could even meet virtually to do this. Along with chatting, you could do cheap activities such as watching movies at home, driving around to see Christmas lights or playing games.
6. Start Your Christmas Shopping Early
While holiday sales can seem tempting, waiting until November and December to shop could mean missing out on the best bargains. Instead, think ahead and take advantage of the clearance sales that stores hold throughout the year. Along with getting cheap gifts, you might shop after-Christmas sales for the following year’s decorations.
7. Cut Back on Gifts
Although you might feel obligated to get gifts even for distant family members, this may not make financial sense. Ramsey said you could consider sending holiday cards versus gifts. He also recommended a family discussion about gift-giving since others could be struggling financially, too.
8. Don’t Fall for the Marketing
From using holiday commercials to elaborate displays, retailers aim to boost their sales this time of year. Unfortunately, you could fall for the advertising and buy things you don’t need. So, if it’s not on your holiday list or included in your budget, skip it.
9. Check Old Gift Cards
If you have unused gift cards, they might make good gifts for others. You can also apply gift card balances toward presents, food and other holiday expenses. Platforms such as CardCash are another option if you’d rather trade the cards for cash.
10. Do Your Online Shopping Early
Last-minute online shopping can lead to needing to pay for expensive shipping methods to get your items before the holidays. Shop early to take advantage of fast or cheap shipping and avoid headaches like potential price increases or sold-out items.
11. Avoid Shipping Charges
Since many online retailers offer free shipping if you spend a certain amount, consider buying multiple gifts at the same place to save. If the store has brick-and-mortar locations, you can also take advantage of any options for picking up your order locally for free.
12. Stick to Your List
When shopping, always have your Christmas shopping list on hand. Not only will this help you avoid forgetting important purchases, but you’ll also know not to buy anything not on the list.
13. Avoid Gift Exchanges
Workplaces and various social groups might host gift exchanges that add to your holiday costs. Rather than feeling pressured to join in, just opt out politely.
14. Consider Group Gifts
If you’d like to buy a loved one something expensive, consider sharing the cost with others and giving the gift as a group. Another option could be buying a gift that goes to an entire family rather than getting everybody separate gifts.
15. Regift Unwanted Items
When done carefully, regifting unwanted items can cut your costs and give loved ones things they can really use. To avoid awkward situations, just make sure the recipient doesn’t know the person who gave you the gift. The gift should also be in new condition.
16. Consider DIY Gifts
You can both save money and add a personal touch with DIY gifts using items at home. For example, you might make a tasty dessert, knit a sweater or tackle a project found on Pinterest or YouTube.
17. Sell Unwanted Items
You probably have household items that you could sell locally or online. You can use sites like eBay, Poshmark, Facebook Marketplace and OfferUp to list gadgets, clothing, home goods, sports equipment and other unwanted belongings. Along with decluttering, you’ll have earnings to go toward holiday costs.
18. Seek Side Hustles
Getting extra cash from side work could reduce your chances of running up credit card debt for holiday purchases. Ramsey suggested ideas such as offering gift-wrapping services, signing up for ride-booking platforms and taking care of others’ pets. You can also opt for online work, including freelance gigs, paid surveys and online tutoring.
19. Avoid Expensive Holiday Traditions
Whether it’s collecting fancy holiday items or mailing tons of holiday cards, some traditions might hurt your holiday budget but not offer you much meaning. Rethink the traditions you participate in and keep only those that bring your family joy and fit your budget.
20. Seek Cheap Stocking Stuffers
Rather than grabbing costly items for your loved ones, Ramsey recommended buying stocking stuffers at dollar stores, which are especially useful for kids’ gifts. You can also save when you take advantage of candy sales.
21. Consider Charitable Donations
It might make sense to skip a physical gift and donate to a charity in the loved one’s name instead. This can be a more budget-friendly option that also helps others and may give you a tax deduction.
22. Consider Virtual Gatherings
Virtual gatherings can significantly cut travel costs and make it easier for your loved ones to meet at one time. Skype, Google Meet and Zoom are a few potential platforms for your meetup.
23. Avoid the Mall
Not only are malls hectic this time of year, but they can easily encourage overspending as well. You might feel tempted to buy from kiosks or grab expensive holiday treats. Skip the trip if you can and stick to your list if you can’t.
24. Rethink Expensive Wrapping Paper
Buying fancy wrapping paper that will later get destroyed and tossed doesn’t make financial sense if you want to save money. Instead, either use materials you already have at home or visit the dollar store for cheap bags, boxes and paper.
25. Stick to Practical, Meaningful Gifts
If you’re going to spend cash on gifts, make sure they’re at least meaningful and useful. Otherwise, you might waste cash on something that just clutters up the recipient’s house. Learn about the person’s needs so you can find better gift options.
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This article originally appeared on GOBankingRates.com: Dave Ramsey: 25 Ways To Save Money This Christmas
