How to Budget for Holiday Shopping Without Breaking the Bank đ
The holiday season is just around the corner, and with it comes the urge to splurge on gifts for friends and family. But before you swipe your card or click "Add to Cart" a hundred times, it's important to have a plan. Avoid kicking off the new year with credit card debt with these tips on budgeting for holiday shopping without breaking the bank.
Set a Realistic Budget đ
The first step to smart holiday shopping is setting a realistic budget. It might sound obvious, but it's the foundation for not overspending. Here's how to do it:
Determine How Much You Can Spend: Look at your finances and figure out how much you can afford to spend on gifts without sacrificing essentials like rent, bills, or savings. Once youâve done this, determine how much youâre comfortable spending on gifts, independent of how much youâre actually able to spend. Set boundaries and stick to them!
Use the 50/30/20 Rule: The 50/30/20 rule can help allocate holiday spending. Dedicate 50% of income to needs, 30% to wants (including gifts!), and 20% to savings.
Create a List and Stick to It: Write down everyone you plan to buy gifts for and how much you want to spend on each. This will help you stay organized and avoid impulse purchases.
Shop Smart and Early đď¸
One of the easiest ways to stick to your budget is to start shopping early. Last-minute shopping often leads to overspending because you feel rushed and may not have time to compare prices.
Take Advantage of Sales: Look for sales like Black Friday or Cyber Monday to grab gifts at a discount.
Use Step Black for Cashback and Rewards: Step Black offers up to 8% cashback with partners, 3% on dining and food delivery, 2% on subscriptions and entertainment, and 1% on every other purchase, making it perfect for holiday gift shopping.
Compare Prices Online: Use tools or apps to compare prices across stores to ensure you're getting the best deal.
Get Creative with Gifts đ
Holiday gifts donât have to be expensive to be meaningful. Here are some ideas to help you save!
DIY Gifts: Handmade gifts are thoughtful and can save you money. Bake cookies, make a photo album, or create personalized crafts for loved ones.
Gift Experiences: Instead of buying a physical gift, consider gifting an experience. It could be a movie night, homemade dinner, or a hike with friends.
Secret Santa: For large groups of friends or family, suggest a Secret Santa gift exchange. This way, everyone buys one gift instead of several, saving money for all.
Start Budgeting Today!
Ready to take control of your holiday spending? Set your budget, make a list, and stick to it. If youâre looking for more ways to manage your money, build credit fast, and establish good financial habits, Step has you covered. Sign up for Step today and take advantage of the tools that make budgeting and building credit easier with a credit building app!
Happy holiday shopping!
