We can officially say it’s the holiday season! Christmas, Hanukkah, or Kwanzaa take your pick; the time to be merry is definitely in the air. So whether you celebrate or know people that do, you will soon start scouting stores for presents for your loved ones. With the tough financial year, granted, many are cautious about this winter season being one of the biggest spending seasons of the year.
Nonetheless, most people are gearing up to spend more than they usually do. But the fear one may end up in debt after a year of progress looms, which is not far-fetched. If one is not careful, they could easily surpass their budget and take out loans with lenders or have BNPL platforms to cover the cost of gifts.
How To Save Big While Remaining Debt-Free This Holiday
Given the year we have been through, a chance to save some money sounds good. With these tips, you can do that and more by spending less; you can avoid taking up debts that may put your financial standing on shaky ground.
1. Create A Budget First
Create a budget before you buy anything. The gift after gift you buy adds up, so ballpark what you plan on spending on each person before you buy it. On the YNAB app, keep an estimated column of how much you want to spend on each individual and how much you actually spent. You can also use a spreadsheet to keep it organized
2. Just Tech It
What if you did not have to pay full price for items like clothing and shoes you get for yourself and loved ones during the holiday? Just let technology do all the work for you. Set price alerts and get notified when an item drops in price. Go to your mobile browser or Google app, and search for what you are thinking of buying. On the shopping column, visit the product page and go to the right-hand side and turn on the ‘track price’ option. Voila! Stores often offer price reductions for less popular sizes to do away with remaining inventory before stocking up. All you have to do is let technology do the work for you.
3. Use Cash Back Apps
Did you know you could get money back for items bought through cash-back apps? Yes, apps like Rakuten and Honey get paid to drive traffic to retailers; thus, when you use their sites and apps to purchase, they kick back some money. Best part? You can still use a credit card and earn points or rewards on both. Just remember to install extensions if you are using a browser or directly download the apps; that way, when you leave the site, you keep your points.
4. Use A Sinking Fund
Using a hundred dollars at one go is much more painful than stocking away 20 dollars for the next five weeks. A sinking fund is an effective way to prepare for those purchases you will be splurging on this holiday season. You do not have to go into debt to make up the cost; start setting money aside now, and you’ll be good to go by the time you are ready to buy.
5. Compare Online Deals
Stores are big on deals during the holiday season but do not just go for the first you find. However, securing the best of them will require an online deep dive. Visit different online stores and compare the deals they have on similar items.
Wrapping Up
The last thing anyone wants to worry about after a season of merry is stressing about debt. Make the smart move to adopt these savings tips and avoid debt during the holiday. Good luck and happy shopping.