5 Steps to Enjoy Holiday Shopping on a Budget

Now that the holidays are right around the corner, it’s time to start thinking about doing your holiday shopping. If you’re like most people, you’ll need to keep an eye on how much you spend.

With that in mind, below are five steps to follow when shopping for the holidays.

How to buy holiday gifts without breaking the bank

1. Make a list — and check it twice

The first step is to make a list of all the people to whom you normally give gifts. After all, you can’t plan out your budget until you have a better idea of what you’re going to need to spend.

Once you have the list in front of you, decide whether or not it looks realistic for this year. If there are too many people on the list, consider trimming it down. One way to cut the list drastically and have some fun is to suggest a white elephant or secret Santa gift exchange.

If you decide to go this route, you’ll likely be doing other people a favor. Most people are strapped for cash around the holidays, and often gift-giving gets out of control. If you can start a new tradition where people can buy fewer gifts, they’ll likely be thankful for it.

2. Set (and stick to) a budget

The next step is to create a budget around it. For each person on your list, try to set a maximum amount of money that you plan to spend on their gift(s). When you’re done, tally up the totals so that you have a better idea of how much you’ll be spending overall.

If the total amount of money you’re planning to spend makes you nervous, adjust it. Honestly, the amount of money that you spend on gifts each year should fit within your budget. You shouldn’t try to alter your normal budget to account for holiday spending. And remember, cliché as it may sound, it’s the thought that counts.

3. Keep an eye out for sales

The next tip might sound obvious but remember to shop the sales. Many stores have Black Friday sales that can help you stay on budget. And who doesn’t love getting a bargain? Do your best to plan out your shopping so that you’ll hit the sales rather than having to wait till the last minute and pay full price.

In most cases, you can find out when items will be on sale at a certain store by doing a quick Google search. However, if you’re not tech-savvy, consider calling the store instead. While the employees may not know when a specific item will go on sale, they generally will know the days of the week that each new sale cycle starts.

When you’re ready to start shopping, don’t forget to use promo codes and coupons. These days, there are even apps and browser extensions that will automatically find any available promo codes for you. Shopping without them is like leaving money on the table.

4. Be creative

Consider giving friends and loved ones DIY gifts. Depending on your hobbies, you could wrap up a knitted scarf, a homemade soup bowl, a pair of earrings, or even a poem. If you know a friend has been longing to paint her bedroom, offer to help with a day of painting. You can bet your day together taping and painting the walls will be as memorable as a store-bought gift.

You can also explore gifting an experience, like an afternoon visiting art galleries or lunch at your place followed by a movie. Think about who the gift is for and be creative.

5. Track your spending and know when to stop

Finally, when you’re shopping on a budget, it’s important to track your spending. Use a budgeting app or a notebook to monitor your purchases in real-time. This is where the budget that you created comes into play. Do your best to stick to it while you’re shopping. If you go over one person’s spending limit, try to borrow from someone else’s so that the total amount of money spent on your purchases evens out.

And know when to stop. Especially around the holidays, people can get caught up in the holiday spirit and go overboard. However, while that may feel good in the moment, it usually leads to angst down the road. Use these tips to make your holiday shopping enjoyable and stress free.