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In 2020, Americans collectively spent about $ 167 billion on vacation shopping, according to a NerdWallet poll. While that was less than the $ 184 million Americans planned to spend in 2019, “it’s not the spending plunge you might expect in this year of financial insecurity.”
Obviously, vacation spending is a priority for Americans. But if you find yourself spending way too much on gifts and decorations year after year, it might be time to consider approaching your vacation budget like an accountant. Here are five tips to achieve this:
Make a list and double check it)
Even if you want or feel obligated to buy a gift for everyone you know, it might not be your wisest financial decision. So, make a list and heed this advice:
“If your shopping list includes more than five people outside of your immediate family, reduce the number of people on your current list,” said Reyna Gobel at Investopedia. “Next, bake cookies to give to everyone you pulled off your original gift list. This will make sure you spread the holiday cheer and keep you from looking like Scrooge. “
Set a vacation budget
If you know an accountant, you’ve probably heard him talk about the merits of spreadsheets. Spreadsheets are powerful tools, and the good news is, you don’t have to be a CPA to use one! Consider using a vacation budget template like the one from Vertex42. Enter your budget and actual expenses for gifts, cards, decorations, food, and other items, and the template will track how much you end up spending and how much you have left.
But how do you make sure you have enough money for vacation expenses in the first place? You can add a gift category to your monthly budget, or you can also create a holiday gift fund that sits in your savings account. You will add to this fund throughout the year, then whatever is in that fund will become your vacation budget.
Use an automatic coupons browser extension
You no longer need to search for coupons – coupon finder plugins can do the job for you! Just add one to your browser, shop online as you like and as you checkout the extensions will automatically search the web for coupons and apply them to your purchase. Here are a few to consider trying:
- Honey promises to find the best deals online, including Amazon. The free extension can look at an item for you and notify you when the price drops and also allows you to win gift cards.
- Rakuten works the same as Honey, but they refund you by check or PayPal.
- Giving Assistant makes it easy to donate to charity. Shop around as usual, apply the coupons Giving Assistant finds for you, and choose the amount of your cash back to donate to a nonprofit of your choice.
- The Camelizer shows you the price history of items on Amazon so you know for sure if you’re getting the best deal.
- InvisibleHand sends you a notification if the item you are considering is available at a better price elsewhere.
Consider getting a 0% APR card
If you have a great credit score but are strapped for cash this year, a 0% purchase credit card may be a useful option for you. Buy your gifts on credit and pay off the credit card company without interest for up to 20 months in some cases.
“But remember, cash back cards are best used by those who avoid interest by paying off statement balances in full,” said Jason Steele, credit card expert. “If you have to carry a balance, you’d better use a card with the lowest possible interest rate. “
Sign up for credit monitoring
Few things can ruin a vacation like the theft of your financial information. Unfortunately, scammers don’t take vacations. Credit monitoring services notify you of potential fraud on your credit report (s). They will monitor changes to your card balance and new accounts opened in your name. Some even scan the dark web to see if your personal information is available. When you are aware of these things, you can make sure that your personal information is protected so that you can focus on the excitement of the season.
Finding the perfect gift for a loved one is a special time, so prepare ahead to avoid financial hardship stopping you in your tracks. Make a list, budget, use a useful extension, consider a 0% APR card, and sign up for credit monitoring. The holidays are fast approaching – be advised and enjoy it!
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