As this year winds down it can seem difficult to stay on track while saving for a house. According to the American Research Group, the average American plans to spend $929 on holiday gifts. Most people spend additional money on parties, charitable giving, seasonal decor, and more. With those kinds of expenses piling up, it is hard to see how to afford the holidays while still saving for a home. Thankfully, there are a number of strategies you can employ to make room in your budget for seasonal festivities without throwing your savings goal out into the cold.
1.Communicate Openly with Friends & Family
Saving for a house is a big undertaking. People understand it takes a lot of work, discipline, and focus on funding a down payment and affording the home you want. One way to make the holidays more affordable is simply to communicate with friends and family and let them know you’re working toward this savings goal. Explain that, financially, you can’t handle going all-out this holiday season if you want to stay on track with your home-buying plans. You can ask to do something different to celebrate if the usual is an extravagant gift exchange. People who understand and support you may need only that gentle reminder to agree.
2. Find Inexpensive Ways to Participate This Season
Sometimes, there’s no way of entirely escaping the obligation to buy gifts during the holidays. But that doesn’t mean you need to go crazy and splurge on lavish presents at the expense of your goal to save for a home. Consider some festive ideas that will allow you to participate without blowing your budget.
3. Shop Sales & Search Out Coupons
The ideas above might work for some of the recipients on your gift-giving list this season. But you probably have only so many reward points to cash in, and it simply may not be appropriate to give your boss a box of homemade cookies and call it a day. If you can’t get away with this kind of gift, you may need to head to the store to buy a pricier item. But that doesn’t mean you need to pay full price.
4. Rent, Don’t Buy, Expensive Attire
If there’s one time of year you’re expected to show up at black-tie events, it could be the holiday party season. Whether it’s for your company or someone else you do business with, or you just like to participate in high-end festivities thrown by organizations raising holiday funds for charity, attending seasonal parties can get pricey if you’re not careful.
While men have long had the option to rent formalwear, choices for women have been limited. Instead of buying another formal dress you’ll wear once to your company Christmas party, consider renting this year from a provider like Rent the Runway instead.
And recycle those formal clothes! You don’t need multiple outfits for multiple parties. Choose one fancy ensemble and stick to it throughout the season if you’ll attend more than one formal event. You may even be able to sell your old dresses on consignment and make some money on them (to use on Christmas presents!).
5. Trim Your Usual Budget
Finally, if you’re in a situation where holiday spending is mandatory, cover the costs without deviating from your savings plan for a new home by cutting down elsewhere. You’ll need to adjust your normal spending to make room for this once-a-year holiday budget.
Instead of paying for entertainment this season, take advantage of all the free holiday events. You can attend tree lightings and community activities in your local area, or organize holiday potlucks with friends and family instead of going out. Even finding little savings (like saying, “yes, please” when your mom insists you take home massive amounts of leftovers), can help reduce your regular spending to allow for seasonal spending.
How did you save money this holiday season? Share your tips in the comments below!
