• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

9 Tips For Managing Your Money During the Holidays

By Mikey Rox

christmas shopping 2It’s easy to go overboard during the holidays; parties, travel, decorations, and gifts can all put a sizable dent in your budget if you’re not careful. The good news is you can stay ahead of your holiday expenses with these handy money management tips:

Make a List of Holiday Expenses

Just like Santa Claus, you should be making a list and checking it twice to plan out your expenses in advance of the holidays. According to Consumer finance expert Kevin Gallegos, your expense list should include each gift recipient as well as the costs for:

  • gifts
  • cards and postage
  • decorations
  • entertainment, including food and drink
  • special garments
  • child care
  • related travel expenses

“And don’t forget to account for year-end tips for mail carriers, babysitters, housecleaners, hairdressers and other service providers,” he says.

Create a Budget

Once you have your holiday expenses mapped out, it’s time to crunch the numbers. “The number one way to manage and control your money is to create and use a holiday budget,” Gallegos says. “Keep it simple. Use one of the many free apps or online budgeting software programs, a spreadsheet or pencil and paper.”

Pay Yourself First

“The first person you should be putting on your payroll is yourself,” says Christopher McGill, president and CEO of East River Bank in Philadelphia. “The easiest way to save is to set a designated amount of money from every pay period aside for savings and investment. A good goal to shoot for is 6%. Do this before you pay any other bills, and make it a priority.”

Spread Your Expenses

“Gift-wise, retailers typically start offering deep discounts much earlier than Black Friday, so have your gift list ready to pounce on deals whenever they’re advertised,” advises Coupon Sherpa’s Kendall Perez. “And if you’re hosting holiday dinners you can stock up on pantry staples like potatoes, onions and canned goods when they go on sale. That way you won’t be scrambling for the last few morsels of inventory or fighting the crowds for coveted menu items.”

Divvy Up Unexpected Income

If you’re one of the lucky ones, perhaps you have extra cash coming your way around the holidays. McGill offers a strategy on how to handle mini-windfalls. “While that 50-inch flat screen might seem like a good idea now, you should stick to the Rule of Thirds: Take one-third and invest it or put it directly into your savings, take another third and put it towards a past debt, then take the final third and treat yourself.”

Keep Your Credit Card in Check

You may be tempted to use your credit cards around the holidays — after all, the perks and points can beneficial — but you have to stay committed to paying off the balance as soon as you receive the bill.

“Don’t buy more than you can pay off in full every month. Period,” Gallegos advises. “That may result in a leaner, more frugal holiday, but less credit card debt — and a clearer conscience — in the New Year.”

Credit coach Jeanne Kelly also chimes in with an important holiday credit card tip. “My biggest tip for people during the holidays is to be careful not to fall for the discount for opening a new credit card at the cashier,” she says. “Some people know they want to purchase a house in the New Year, but the new account hitting the credit report and the new inquiry can dip the credit score and cost them a lot on an interest rate for a new home loan.”

Stretch Your Holiday Budget

Gallegos provides a few tips to make the most of your holiday spending money.

  • Join a cash-back club. You can receive cash back on your online purchases by joining groups like the Cash Direct Club, Swagbucks, or Rakuten.
  • Plan shopping trips. Map out which stores to visit in what order, and what to shop for at each.
  • Shop with cash or a debit card. Studies have found that people spend 15-20% more on purchases paid with a credit card.
  • Check credit card statements for rewards points. Then visit the rewards web site to convert rewards into gifts, cash or gift cards.
  • Consider group gifts. Coaches, managers and sometimes, family members, can be ideal recipients.

According to Perez, “Using discount gift cards as currency is a sneaky way to save and deepen your discounts when you shop the sales.”

Fortify Your Smartphone

“Your smartphone can be incredibly helpful in keeping you on budget during the holidays,” Perez says. “Gift-list apps such as Santa’s Bag keep desired items and budgets at your fingertips,price-comparison apps such as RedLaser and ShopSavvy will ensure you get the best deal in town, and coupon apps like Coupon Sherpa will help you knock down the price of gifts.”

Avoid Shipping Fees

Shipping fees are the most annoying part of online shopping. But there’s no need to pay the post office when free shipping opportunities abound. “Most retailers will offer free shipping during the holiday season, with the highest concentration of stores waving all minimum order requirements on Saturday, December 14th, which is the date of this year’s Free Shipping Day,” Perez says. She also suggests checking deal sites and signing up for e-newsletters so you’ll know when your favorite store is waiving delivery fees.

Photo Credit: kevin dooley

4 Comments November 25, 2019

Comments

  1. 1

    Laura Vannoy says

    It’s true you spend less with cash and debit cards. But getting your money back after a fraudulent transaction is much slower with debut, and in the meantime your money is gone.
    I use credit for the added protection, but in the end you have to pay in the way which makes you feel safest.

    Reply
  2. 2

    London says

    I really enjoyed this article! Thanks so much for the tips! By the way … love the blog, Len. I’m glad I found it!

    Reply
    • 3

      Len Penzo says

      I’m glad you found it too, London!

      Reply
  3. 4

    Robert Wilson says

    Sounds like fun! Thanks for the tips. Granny and Giftcardspread is the best sites for discounted gift cards.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Polls

Will you close your savings accounts if the banks go to negative interest rates?

View Results

Loading ... Loading ...

Recent Posts

  • Should You Consider A Pre-Settlement Loan In a Personal Injury Case?
  • What Barfing Out of a Bus Window Teaches Us About Managing Money
  • 7 High-Paying Tech Jobs That Desperately Need Women
  • 9 Important Strategies to Help You Manage Financial Risks
  • Black Coffee: Parasites and Leeches
  • Responsible Casino and Gambling Tips: How to Stay Within Your Budget
  • Starting a Side Hustle? Ask Yourself These Questions
  • Grandfather Says: A Chicken Run for the Henhouse
  • 6 Basic Steps to Help You Achieve Financial Freedom
  • 5 Ways Smoking Negatively Affects Your Personal Finances

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 30,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. 25 Examples of Shrinkflation That No Longer Fool Consumers
  2. 2. The 10 Worst Things I Ever Bought
  3. 3. 7 Perplexing Money Questions Without a Good Answer
  4. 4. My Cola Taste Test: Is Coke Really Better Than Pepsi?
  5. 5. The Real Secret to Becoming Rich as a King
  6. 6. Planning a Wedding? Here Are 9 Ways to Ensure You’ll Pay Too Much
  7. 7. The Big Secret the Banking Industry Doesn’t Want You to Know
  8. 8. 5 Things Nobody Tells You About Being Poor — for Good Reason
  9. 9. A Simple Test to Know If It’s Better to Rent or Buy a Home
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2021 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2021