How to Save Money Even During the Holidays

If you had to lump shopping and the holidays together, you’d most likely come to the conclusion that this time of year is more about spending money than saving it.

That assumption is predicated on the record number of sales that occurred over the Thanksgiving Weekend, with Thanksgiving Day leading the way and culminating with Cyber Monday over the course of that five-day period, most of which will be propelled by online shopping and the influx of shoppers migrating in that direction solely versus in-store browsing, crowds and long lines.

Early projections out ahead of that weekend had consumers spending nearly 22 billion dollars in total online, with heavy emphasis on online sales seeing a 15 percent jump, roughly 18.7 billion in 2017. ^[1]

The actual in-store shopping wasn’t nearly as popular, an ongoing trend, with sales and traffic down. The traffic itself dipped 1 percent, with nearly 2 percent of the Black Friday in-store traffic down versus last year; the same report showcased the growth of online shopping with Black Friday scoring 6.22 billion in sales online and another 3.7 billion on Thanksgiving Day alone, up 28 percent from 2017.^[2]

Cyber Monday became the largest shopping day in U.S. history with nearly 8 billion sold on that day alone.^[3]

That record is stunning in that it competes with Amazon’s “Prime Day,” which scores big with consumers but can’t match the power of the exclusivity of Cyber Monday.

As far as how much consumers are spending individually, early reports and estimates showed that the average is around $554 spent over the Thanksgiving Weekend with more than $200 of that going to gifts alone.^[4]

That same report said 93 percent would plan on doing online and in-store shopping, and 77 percent that they’ll be apt to spend money at stores (physical) close by to the ones they’re making it a point to visit, with those same physical stores averaging 37 percent of an increase in web traffic, and that was confirmed with the results of Thanksgiving Weekend and the online presence, purchasing power.^[5]

Shoppers turned out in droves with 165 million shopping in total over the Thanksgiving Weekend, and although that was less than the 174 million, the average U.S. shopper still spent $313 during that time period with.^[6]

One stat that has been consistent for the pats several years, however, is that in total, including the Thanksgiving Weekend and subsequent sales in December that include Green Monday and Super Saturday (Saturday before Christmas Day), consumers spend around $1,000 over the holidays, including gifts, food and other holiday essentials, like decorations, travel, fuel for their vehicles, etc.

That number is significant when you consider another $1,000 statistic that is equally troubling, although most assume and argue that the $1,000 they spend over the holidays is just part of the concessions you make to go into debt.

Roughly 69 percent of the United States population has less than $1,000 in their savings account.^[7]

So by that logic, if you spent $1,000 on the holiday and 70 percent of Americans have that in their savings account, that would mean they’re flat broke come December 26, right?

Well, that may be true to a certain extent but you also have to consider that those same shoppers have no problem going into debt over the holidays, completing abandoning the premise of the article: saving money during the holidays.

Last year into 2018, 15 percent of the populations say they’re still paying off debt from 2017, with 58 percent wanting desperately to use credit cards less (58 percent) and 79 percent want to spend less because that’s the percentage still paying off 2017 debt.^[8]

The issue in front of the masses is simple: you associate spending with having a “good” holiday, making sure you go above and beyond just to appease a day that could put you off your financial track, if you were even on one to begin with heading into the holidays.

But just because this is the spending season doesn’t mean you have to overly indulge or not still have a savings plan intact, too.

Here’s a few tips to save during the holidays, even with just one week before they’re here:

Last-minute loopholes: Avoid spending sporadically on last-minute gifts

It’s almost comical when you consider how we treat last-minute shopping and gift-giving the same way we eat cookies when we’re not supposed to or some other decadent that deserves a stiff shot of moderation and instead we overdo it.

Gift giving typically has a modicum of semblance to it, until you get down to the final minutes of said event.

One easy example to call out is waiting until the last minute and being forced to overpay for shipping. Overnight shipping could cost in excess of $50, and that’s a hard pill to swallow when the actual item could cost as much or less than that.

If you’re someone who buys gifts as a means to spend more for someone who you maybe don’t see often (compensate) or are rushing around buying last-minute gifts without much rhyme or reason, you’ll definitely find yourself spending too much.

Remember that most Americans who shop for the holidays have the best of intentions: 65 percent of them set a shopping list, but 77 percent of them overspend anyway.^[9]

The trick to spending smart on last-minute shopping boils down to a list, an item and sticking with it, avoiding the tricks of the trade that retailers are so good at: making everything look so wonderfully cheap and sale priced.

An extra $15 for a sweater seems small but when paired with that mentality 10 times over, well, you get the picture, and subsequent bottom line.

Don’t forget 364 other days: Budgeting doesn’t take the holidays off

If you’re someone who entertains and employs a budget year-round, why on earth would you stop worrying about what made you so successful the rest of the year and give it up for just the holidays?

Having a budget, setting aside a certain percentage dedicated for saving money or putting an amount into a savings shouldn’t stop just based on the fact that it is the season of spending.

The standard amount you should be setting aside from one paycheck to the next is around 20 percent of that check.^[10]

That amount isn’t negotiable, no matter if it’s the holidays or whatever event or monthly “surprise” might come your way.

When you own and operate a budget, you should be seeing aside money every month toward saving. The onset of the holidays often takes that 20 percent or whatever amount you’re saving and pushes it to the brink of starvation.

Quite simply gifts outweigh saving money, and that can’t happen, at least not in totality.

If you’re interested in not going into debt, and using the money you have saved, so be it. And if you’re going to take an manipulate that 20 percent and say you’ll use 5 or 7 percent of that toward gifts and save the other 15 to 13 percent, then at least you’re not compromising your entire savings plan budget.

Here’s another way to save from messing with your savings plan or making sure you have extra money: cut some expenses for a few months.

While this isn’t always a popular sentiment, you should consider dumping your cable bill after the holidays or cutting back on take-out food after the holidays as well. This allows you to get extra income in place of either what you didn’t save or what you spent out of a savings account to suffice the shopping around the holidays.

Narrowing plan: Take that list and check it twice and then about three more times

By now, you’ve probably hit on the major players on your holiday shopping list, and that would include parents, siblings, significant others and those individuals closest to you.

Where most shoppers tend to go off the proverbial “deep end” as it relates to spending too much is that expansive nature their list has in the beginning of this process with the refusal of whittling it down to make your budget work.

Last-minute shopping is textbook “buy for someone you really don’t need to buy for” or it results in buying another gift for one of the major players as mentioned previously.

The simple fact is your list might be a tad on the bloated side, so much the same way you look at your budget and start finding ways to save money, the same can be said for a shopping list, whether it’s in the midst of your shopping (like right now) or even with a few days of holiday shopping to spare.

For example, everyone has a friend they buy a gift for, and then they buy one for you, so you basically exchange $25 gift cards to Best Buy or Target, and if you’re someone who is more interested in saving that money than having to go to a specific store, it’s perfectly fine to ask the person if you want to hold off on gifts this year.

Chances are it’s like a mutual breakup: both sides want out, and you’re just the person who addresses this financial elephant in the room, and everyone leaves the conversation happier and with more money in their pocket.

Being able to leave the holidays in one financial piece is a prideful experience, if you can be one of the few that don’t use credit cards, go into debt or can simply be content with setting a holiday budget, following it and avoiding that overspending gene that so many share.

The fact remains that the joy and happiness that defines the holidays can’t be measured on how much you spend, but should be more of a thoughtful, provokingly positive means of gift giving that comes from the heart, and although spending is a part of it, you can’t under value the importance of being mindful of how much you can truly afford and what spending too much can mean for just one or a few days of gift-giving.

Much the same way most couples rationalize that they’re not ready to spend $30,000 on a wedding (for just one day, as the reasoning), you shouldn’t compromise what Christmas and the holidays in general mean to you for just a few hours or days of exchanging items when over time they’ll leave you financial broken for year or years to come.