Five Savings Tips for the Holidays

More time. More money. We all wish for both, especially during the holidays. Use these tried-and-true methods for a more enjoyable season.

Create a budget. Knowing approximately how much you want to spend doesn’t count. We’re talking sit-down-with-a-pencil-and-paper budgeting that includes listing all expenses and extras: tips, cards, postage, travel, groceries and decorations. Then write down the names of everyone you plan to buy a gift for and how much you plan to spend on each. Add it all up, recover from the shock, then go back and decide where you can cut costs.
TIP: Once you decide how much you are spending on each person, put that amount of cash in an envelope marked with the person’s name. Pay for the gifts using that cash. Once it’s gone, you’ll be less likely to buy more.

Start a new tradition. Make this the year of starting something new. Rather than buying gifts for everyone, pick names instead. Or have everyone bring one wrapped item under a set dollar limit and coordinate an exchange. Or trade gifts of time or labor (e.g. babysitting, baking, carpooling) with each other. Or agree to pool your money to buy gifts for a needy family instead, make a family donation to a food pantry, or give donations in honor of each other. The possibilities are almost endless. Talk with those whom you normally spend the holidays with and see what ideas they have.
TIP: Instead of an elaborate sit-down dinner, invite everyone to bring a favorite appetizer to share.

Be creative. The latest decorations hanging in the stores are pretty, but do you really need new ornaments, tablecloths and garland to make your home festive? Go online or page through magazines to find decorating ideas you can do on your own. Simply combining and arranging what you have in new ways makes everything look fresher.
TIP: Recapture your childhood by creating your own decorations. Make garland from popcorn and cranberries. Collect pinecones and spray paint them in festive colors.

Find the deals. Be a smart shopper for the items you need to buy. Pick up the Sunday newspaper and study the sales inserts from your favorite stores and local retailers. Check out your area dollar store or the dollar section of stores for stocking stuffers. Compare prices through online sites like PriceGrabber.com, Buy.com or Shopzilla.com.
TIP: Instead of buying online using your credit card, use a prepaid card in an amount equal to what you plan on spending on gifts. Use the card as you shop rather than racking up dollars and accumulating interest on your credit card. If you must use a credit card, use the one with the lowest interest rate in case you can’t pay off the balance immediately.

Less is more. Remember that you’re not the only one who wants to save time and money this year. Your friends and family are probably thinking the same thing and will gladly follow your lead in cutting back on the extravagance and focusing on what matters most during the holidays.