5 Tips For Christmas Shopping on a Budget

Christmas time is a magical time of year, but it can also be a very expensive one. If you're trying to get the most for your money this Christmas season, here are 5 tips that will help you save some cash while still giving gifts that people really want!

Start saving for the holidays in January

Start saving for the holidays in January by using the best free budget planner to track your expenses and savings throughout the year. Even setting aside $20-50 per month will give you several hundred dollars extra to use for gifts and other holiday expenses. Automate transfers from your checking account to a separate holiday savings account, and learn how to create the perfect grocery budget to free up more funds for your holiday savings.

1) Look for deals at a store that you don't usually shop at

No store has all of the items for sale at any given time, so it's best to shop around in case you want something that's not available at your usual store.

You never know when something might be on sale, and these days stores often do digital price cuts where they reduce the price only for you when you flash their app on your phone!

It's good to be able to shop around for deals on some of your favorite items. There are some stores that are known more generally as retailers with great deals because they generally have lower prices than other retailers.

Sometimes, you can find items at one store cheaper than another store even if the same item isn't on sale. It's always worth it to check out a deal before buying an item-no matter where you might be shopping.

Use Black Friday and Cyber Monday sales strategically

Use Black Friday and Cyber Monday sales to your advantage, but go in with a plan and read the ultimate guide to saving money in 2023 for more proven strategies for building wealth throughout the holiday season and beyond. Make a list of items you want to buy and the best prices you've seen. Check ads and plan your shopping route to hit the best deals. Set a firm budget and stick to it even with all the frenzied sale pitches.

2) Set a budget and stick to it! 

It's always a good idea to have a budget when making large purchases. A simple goal would be to not spend more than X dollars per person and then just buy one item for every Y dollars spent.

You should also try to get your shopping done earlier in the year rather than later. That way there's time for you to save up money and also see what the trends are so that towards the end of November you don't overspend on something popular or unsold by buying too close to December 1st.

The whole idea of Christmas shopping is not to save money since this will tie up your capital, but instead spend smartly.

3) Buy gifts in bulk - by buying more than one of the same item, you can save money on each individual purchase 

It's best to buy in bulk because it saves money, but there are also some cons listed below. 

For example, you might end up with a lot of gifts that no one wants to receive. Also, having large quantities on hand can create storage issues if space is limited in your home.

Buying in Bulk Pros and Cons

• Cons: If the gift is for someone you know well, that purchase might be seen as impersonal or impersonally made. For example, if you only buy a gift for a child every other year on their birthday and never go with presents on any other occasion then technically they would not be receiving many gifts from you.
  
  
• Pros: Buying in bulk saves a lot of time too which can allow you more free time to do something enjoyable instead of spending your day going around town looking for more things to buy! 

4) Shop online so you have time to browse without being rushed or pressured by other shoppers 

One benefit of shopping online is that you can take your time, think about what you want without worrying about others waiting, and actually read reviews.

This way, the only person wanting the product, will be yourself! You also don't have to pay shipping or gas money for shopping at brick-and-mortar stores -- which adds to the savings.

If you know exactly what you're looking for ahead of time, either because it's an item on sale or it met other needs in your budget, then online shopping may be advantageous because there are so many great deals, especially during Cyber Monday sales events.

Install cash-back apps like Rakuten and browser extensions like CouponCabin when you shop online. These tools give you a percentage of your purchase back, usually 1-10%. The savings can add up, especially on bigger purchases. You can get your cashback via PayPal, check, or as an account credit.

Use coupon sites like RetailMeNot and Honey to find promo codes for online purchases. Install browser extensions like CouponCabin to have coupons automatically applied at checkout. These tools help you stack savings on top of sale prices.

5) Make sure your gift cards are from stores where the recipient shops regularly so they'll be able to use them ASAP!

While there are many upsides to gift cards, they are not always the best thing for everyone. If someone is picky or you don't know much about their interests, then a gift card that has to be used for something specific could end up being somewhat lacking in what the receiver might want - and even more so if you get it wrong!

With Amazon's Prime Day, Amazon gift cards may be an excellent option because Amazon carries just about everything these days! Give them $25 toward any product on Amazon by sending them an Amazon e-gift card. 

It's a bad idea to buy a gift card for someone you don't know, as you have no way of knowing what they might have gotten instead. And worse yet, if you give them a gift card and it's one that they can't use where they live or shop regularly, it could be worth substantially less than the full value. In some cases, these gift cards are worthless after 12 months from purchase! 

If you opt for gift cards, try to get ones that don't expire for at least a year. Go for Visa or Mastercard branded gift cards that can be used anywhere. Buy discounted gift cards from sites like CardCash to get bonus savings.

For picky recipients, get a gift card to a major retailer like Target or Walmart so they have lots of options. Or give an experience-based gift card for restaurants, movie theaters, or Airbnb.

Some Other Tips

Consider giving experiences instead of physical gifts

For a change of pace, give tickets to events or experiences instead of physical gifts. These could include movie passes, concerts, theme park tickets, pottery painting sessions, cooking classes, or museum memberships. Experiential gifts often create wonderful memories.

Make homemade gifts

Get crafty with homemade gifts like baked goods, photo books, candles, jewelry, knitted scarves, blankets, and other handmade items. Or give your time - offer services like a homemade meal, babysitting, pet sitting, or cleaning.

Regift thoughtfully

If you receive a gift you don't want or need, consider regifting it. Just be sure to follow proper regifting etiquette. Repackage the item so it looks new, and don't regift to the original giver or within the same social circle. Write a nice card so the regifted item looks thoughtful.

Use credit card rewards strategically

If you pay off your credit card balance each month, use a rewards credit card for holiday shopping and make the rewards work for you. Points/miles can be redeemed for statement credits or gift cards to help offset purchases.

Set up a family gift exchange

For larger families, set up a Secret Santa gift exchange where names are drawn and each person buys one thoughtful gift within an agreed spending limit. This cuts down on everyone having to buy multiple presents.



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