If you carry a balance on your credit cards, this post is not for you. Go to https://extension.usu.edu/powerpay/ and focus on paying off your credit cards and other high interest debt.
1. Set your limits
Decide your bottom line. How much can you really afford? Once decided; break down amount per individual recipient. Don't forget the "stealth costs:" tips to service workers, holiday parties, gift exchanges.
2. Put money aside
For those who don't already have funds set aside see #6 below. What discretionary expenses can you forgo this month to fund your plan? Best to pay cash (really? yes!) or debit card. Really? Only use a credit card if you are SURE you can pay the bill IN FULL when due. Paying interest means every gift will cost 20% more.
3. Start buying as soon as possible
This doesn't mean getting frantic on Black Friday. Reduce stress by planning and buying now when you won't have to pay extra fees for expedited shipping. All shipping costs will be higher this year due to inflation. Just because you pay for Amazon Prime and get free shipping doesn't give license to overspend.
4. Buy or make creative or sentimental gifts
Buy local when possible. Be creative; make some gifts that will mean more to the recipient than a store-bought gift. Give the gift of your time: babysitting, gardening, snow shoveling, leaf raking, baking or food preparation.
5. Don't spend money you don't have
Holidays encourage overspending. Face it and reject it. Credit cards encourage overspending.
6. Start in January to get a head start on next year's giving
Start an online savings account (currently paying 3%) and make an automatic monthly deposit to plan for next year's holiday expenses.
Thanks to Kevin J. Ryan, writing in The Wall Street Journal, 11/23/22. With my elaborations and edits.
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