Tips for smart spending this holiday season

MANILA, Philippines – The season of giving is upon us! But with the joy and merriment also comes the stress of all that chaotic holiday shopping. If unprepared, you run the risk of overspending and burning out before you even get to wrap your gifts.

Holiday shopping doesn’t have to be an uphill financial battle. If you play your cards right, you may even get to save a bit. Here are 7 tips on how to tackle spending for the holiday season:

1. Set a budget 

Are you guilty of setting a budget, setting it aside, and then just winging it from there? Well, a budget is as useful as used wrapping paper if it’s a number that’s too exorbitant or too stingy. Save yourself from the shock of billing statements or the embarrassment of handing out IOUs by settling on a figure that’s comfortably affordable. 

If you’re really tight on funds, financial experts suggest only spending 1.5% of your annual income on gifts. But if you’re dedicated to spreading some serious holiday cheer, you can save up beforehand by cutting out the little extras in your usual spending habits. Say, that daily cup of coffee in the morning?

2. Make a list of who’s naughty or nice

Have you ever made plans of all the people you planned on gifting, only to realize your budget didn’t have any space for it?  As nice as it would be to give everyone in your life a gift, it’s definitely something that practicality wouldn’t advise. So the best option is to make a list and stick to it, then rank and group them according to priority as well. Be sure to also take note of special preferences or aversions, like peanut or milk allergies or whatnot! 

If it sounds tedious, it is. But it’s better than handing mother-in-law those Christmas cookies you baked when she’s lactose intolerant. That might send the wrong message.

3. Shop for groups 

Giving each and every person in your life a unique, special, and thoughtful gift is a lot of work – and frankly speaking, ain’t nobody got time for that. Now that you’ve made your list, and sorted it out, it’s time to decide which people you’ll be giving unique gifts to, and which groups you’ll be shopping in bulk for. Since unique gifts require more time and money, do those first and save those for the really special few in your life.

The bigger groups can be given variations of a gift you think they would all love and use, like colored baggage tags, baked goods, or wine decanters. Not only will this spare you a headache, it’ll make Christmas shopping that much easier. 

4. Have extras

You may have made a list, but let’s be honest, chances are there’s someone you overlooked! Be prepared for this by having a few extras on hand, like those bag tags or the wine decanters, so you don’t need to make another run to the mall.

5. Look for the best deals

This step is probably the most taxing of all because it requires you to compare gifts and prices. Since you’re working with a budget, you’re going to have to work extra hard to make sure you stick to it. Getting the best deals means you’re going to have to check out a number of stores, take note of prices, and crunch numbers. Consider buying in wholesale, it helps for shopping in groups and having extras! Always take note of upcoming sales, sign up for email or text promotions from stores you like, and be ready for the battle. 

6. Simplify the way you pay

This is the most important part because almost every gift you give requires first being purchased! So keep your payment options effortless to streamline the process. In this season of shopping incentives and promos, choose to use a credit card. 

Credit cards come in handy because there’s no need to scrounge up loose change when you’re already at the cashier, and because you can maximize the many perks and privileges they offer. The simplest, most straightforward benefit would be a cashback card, since it acts as a built-in and instant discount, even on top of existing promotions. 

Sure, cash is straightforward, but cash doesn’t offer any perks, freebies, or discounts, and it’s highly unlikely that you will always have cash on hand to pay for everything. If you have a solid budget that you know you’re going to stick to, then credit cards are more beneficial than cash.

7. Don’t be a Grinch!

The holiday season is all about giving – not just gifts, but time and effort and Christmas cheer as well. Happy shopping! – Rappler.com

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With a credit card like the American Express Cashback Credit Card, you have no minimum spend and no rebate cap, which means you get cashback with your every swipe! You automatically get a 1% cashback for your local purchases and 2% for your overseas purchases. Click here to know more and to apply.