With the holiday season coming up, it's easy to get excited and go on a little shopping sprees for not only your friends and family but also yourself. In this episode of credit tip Tuesday, we want to be able to help you limit the spending you do for the holiday season to make sure you're going into 2022 with the best financial mindset possible.
This time of the year is typically when consumers are more likely to spend money and when businesses are spending more money on advertising and also increasing the amount they put on their sales.
Below are a list of things you should keep in mind this holiday season when it comes to your finances
Keeping The Gifts Simple
While it's nice to treat yourself and others around you, it's also a good idea to be realistic about the gifts you're giving and the treats for yourself. You need to remember that, just because a gift is expensive, doesn't make it any better than a gift that doesn't cost as much. While this isn't going to be your holiday gift guide, this is going to be your holiday budgeting guide instead. Sometimes the best gifts comes with the smallest price tags and the most thought put behind it.
Look For Deals/Coupons
If you decide against saving for the holidau season, the best thing you can do is to keep in mind the sales you're going to be getting. There are tons of apps online (such as Keepa) that give you a price history of a product. Don't be fooled by the abundance of "sale" products out there as sometimes these can be used as marketing ploys to make it seem like you're getting the best deal possible on these purchases.
Websites such as RedFlagDeals helps many Canadians stay informed on the best deals around the nation and many users comment on whether or not these deals are good or not based on historical values. I know this is one site I use all the time when it comes to buying things, and not just during the holiday season.
While we are in the holiday season, this is going to be the best time for deals so take advantage of the things you need rather than the things you want.
Create a Needs & Wants List
While the sales for everything are incredible during this time of year, it's important to keep track of your basic needs and wants for yourself and others. Just because an item is on sale for half off doesn't mean you should necessarily buy it. It's like one saying I once heard, are you saving $300 or are you just spending $500. When I heard this, it changed my mindset completely when ti came to shopping for things I didn't need.
While there are many products that fall under the want category, keep in mind that this wouldn't be a bad time to purchase items you won't necessarily need until the next season such as beachwear or outdoor summer sport products. If it's something you think you'll need later down in the year, it might be worth picking up for the time being.
Create a Holiday Budget
while it's easy to get carried away with all of the sales, you should definitely create a holiday budget limit for the season. A good way to do this is to create a hard cap on what you want to spend and stick.by it. I know it's not easy having to stay away from the sales, but when you think of all the past purchases you've made in life during boxing day sales, how many articles of clothing did you buy that you've never worn once this year?
This is another great way for you to prioritize your finances and start off the 2022 year with a bang. You wouldn't want to go into the new year with a bad financial mindset.