Last minute shopping is no excuse to neglect making a spending plan. Here’s how to spend smarter this year and in the year to come.

Can you believe that we are already rounding the corner to 2020? It’s hard to believe that the year flew by so quickly, and the days are narrowing to purchase any last minute gifts.

Before you run up your credit card, there’s one important thing you need to consider: your holiday spending plan.

No matter which holidays you celebrate–Chanukah, Christmas, New Years,  Valentine’s Day or Boxing Day, to name a few–the fact is that the expenses can really add up. Between gifts and parties and travel costs, you could potentially wreck your entire annual budget in the last quarter of the year.

Not to fear, though! By thinking ahead to these big expenses and planning how to best tackle them, you can create a solid holiday spending plan that keeps some jingle in your pocket.

Set a Budget… and Stick to It

The best way to ensure that your spending doesn’t wind you up in debt is to set a budget. This is true whether you’re buying a home, planning groceries each month, or just trying to get a handle on Christmas shopping.

Make a gift list and check it twice. Then, determine how much to spend on each person, and if there are any ways that you can whittle the expenses down. Maybe you and your friends can agree on a white elephant-style gift exchange, instead of buying presents for everyone. Or perhaps your family can agree to a set dollar limit.

Don’t forget the other holiday expenses when making your budget, too!  Things like dinners out, travel expenses, wrapping paper/gift bags, and groceries for special family meals can really add up.

Start Saving Now (If You Haven’t Already)

Alright, let’s be serious: Christmas is almost here. There isn’t much time left to start saving for the inevitable holiday spending, no matter how committed you are.

This doesn’t mean you can’t try to kick your efforts into high gear, though. Start putting away $50 a week into a holiday fund, if you can. By the time those holiday credit card statements arrive, you’ll have some cash stashed away to help pay the balance off. You might also want to use this opportunity to declutter the house before bringing new gifts in; whatever you can sell is more money added to your holiday fund.

Ramp up your side hustle, if you have one, and put the proceeds toward Christmas. If you get an end-of-fiscal-year bonus or some other holiday windfall, put that into your spending account, too. The more you can start saving–and the higher you can kick your efforts into high gear–the better off you’ll be post-holidays.

Don’t Stray from Your List

An easy way to overspend (or even blow your budget on items for yourself!) is to walk into the store without a specific plan. By having a detailed shopping list for each person you need to buy for–and then sticking with it–you’ll potentially save yourself a lot of wasted money.

It is smart to also have a backup gift planned for each person on your list. That way, you don’t buy anything unexpected or impulsive if the original gift you had in mind isn’t available.

Price Shop Where You Can

You’re going to have to spend money every holiday season… but that doesn’t mean you can’t spend smart.

No matter what you’re buying or from where, chances are good that you can price shop to save money. This means hunting for sales, looking online to find better deals, or even invoking a store’s price-matching policy to snag the best price possible.

Some stores will even offer an additional discount if you find a better deal elsewhere, to entice you to buy from them. Set a price point that’s worth your time–say, $20?–and be sure to shop around on your phone before you ever buy in-store. Or if you’re buying online, use tools like Google Shopping to search thousands of stores at once for the best deal.

Be sure to take advantage of sales, too. Keep an eye out for added specials as Christmas creeps closer; some stores will want to clear holiday inventory before it’s stuck on their shelves.

Lastly, pay attention to stores with price adjustment policies. If you think an item you need will go on sale December 26th, see if you can utilize this store policy by buying a week or so prior. You’ll have to stand in line with the gift receipt folks, but it might be worth it for the post-sale savings.

Spend Smart

Theft and fraud are possible all year-round… but they really ramp up during the holiday season. Protect yourself (and your bank account) while you shop by spending smart.

While debit cards are a convenient choice, they don’t offer the same protections as credit cards. If your debit card is compromised, oftentimes your funds will be unavailable while the bank investigates; this could last weeks in some cases, tying up important funds that you need. Disputed credit card charges, however, won’t affect you until after the investigation is complete (if at all).

Related: The 6 Best Credit Cards for Holiday Shopping

Credit cards also offer a variety of beneficial features that you won’t get by buying with a debit card. These include extended warranties, return protection, and lost/damaged item protection. Plus, you’ll earn rewards on those purchases by using the right card.

Of course, you need to balance these protections with your own personal money habits. You know yourself better than anyone: if there’s a chance that making holiday purchases on a credit card will spiral into revolving debt after the holidays, stay away from the plastic. The credit card protections aren’t worth it if you won’t pay your balance in full at the end of the month, or if you don’t have an introductory 0% offer that will help you avoid paying interest on your purchases.

DIY or Regift to Save

Store-bought gifts can never be as special as those made from the heart. This holiday season, you can save money and let someone know how important they are by opting for homemade presents.

Your DIY gift can be as simple as a personalized mug or homemade treats. There are so many great tutorials online, too; you’re sure to be able to find gift-worthy ideas that are within both your budget and your talent level.

You can also consider regifting to save money this holiday season. Have a drawer full of unused Starbucks gift cards (but you don’t actually drink coffee)? Throw one into a cute mug for a company white elephant party or to give as a teacher gift.

If you get gifts throughout the year that aren’t really your style, you can set them aside as grab-and-go holiday options for next year, too!

Start Planning Early for Next Year

It won’t help you much for this holiday season, but the best thing you can do for yourself is to start planning now for next year.

By getting a jump on the holiday strategy–and putting a plan into place now while it’s fresh in your mind–you can set yourself up for success next year. This means adjusting your budget and gift-buying plans based on this year’s experiences.

It also means setting a budget for yourself. You may not know exactly where you’ll be financially next year, but you can still establish a general guide for how much you think the holidays will cost you. Don’t forget to include travel expenses, special events (such as family outings or special dinners), and add-ons (like wrapping paper and gift bags), in addition to the actual gifts.

Then, set up a savings plan. By stretching your goals out over 12 months, it’ll be much easier to meet them without feeling the pinch. Plus, you can set up automatic transfers to take the work out of the entire process.

Topics: Budget • Personal Finance • Personal Finance Tips

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