2016-11-01



Holiday spending in America is reaching epic levels. The National Retail Federation estimates that retail sales in November and December could top $650 billion, and online sales could total close to $120 billion. And those numbers don't include the non-holiday expenses you'll incur in the weeks leading up to the holidays.

The good news is you can keep your spending small with the right shopping plan. Here are 50 relatively painless ways to save up for the holiday shopping to come.


Step 1: Plan Future Shopping

One of the central tenants of personal finance is to spend less than you earn. And to succeed at smart shopping, you have to be willing to follow this principle. These tips can help you prepare for the coming shopping season.


1. Divide and Conquer

Before you do anything, you need to come up with a plan to allocate your finances in the best way.

"Determine how much you'll spend during the holidays, and divide it by how many weeks you have left," said Michelle Schroeder of MakingSenseofCents. "Then, save that amount each week. It'll make saving money for the holidays sting a little less."

2. Earn (and Stash) Cash Back

Shopping expert Kendal Perez of CouponSherpa.com encourages shoppers to turn their cash-back reserves into a holiday gift fund.

“You can earn cash back while grocery shopping or shopping online and stash that cash to offset holiday shopping,” she said. “Apps like Ibotta and Checkout 51 offer cash back on select groceries, while Ebates.com is an online shopping portal where you can earn 2 percent to 5 percent cash back from hundreds of retailers.”

3. Sign Up for Coupon Alerts Now

If you have a general plan for which retailers you’re going to visit on Black Friday, look at some of the best coupon sites and sign up for the stores' deal alerts.

Related: 9 Sites for the Best Online Coupons

“By doing so, you’ll get in-store and online coupons sent to your email inbox for those stores that you can redeem on Black Friday and beyond,” said Kyle James, founder of Rather-Be-Shopping.com. “Basically, you’re automating your savings and guaranteeing you shop with a coupon in hand."

4. Shop for Décor Now

If you want to get home decorations on the cheap, it's important to start shopping early.

“Often times, decor isn't discounted until the week of the holiday or even after the holiday has passed,” said savings expert Kerry Sherin of Offers.com. “[However], sites like Michaels and Hobby Lobby are continuously offering early discounts and 40 percent-off-one-item coupons. Shop early, and stock up on your decorations to avoid paying more later."

5. Buy a Gift Card Each Week

If you want to reduce the holiday shopping burden, start buying easy-to-store items like gift cards now.

“Think about where you will shop for the holidays, then buy a gift card a week until the holidays,” said Shelley Hunter of GiftCards.com. “This will help spread out your holiday shopping expenses. Planning a big toy store haul? Start buying gift cards now, and you’ll be all set when it’s time to shop, or use those gift cards on Black Friday deals."

6. Schedule E-Gift Cards Early

If you have a lot of people to buy for this year, consider scheduling electronic gift card delivery now to make your life easier later.

“You can schedule e-gift cards for delivery up to six months in advance or more," said Hunter. "Buy one e-gift card a week, and schedule them for delivery on any day you choose. Plus, sending digital saves you postage costs."

7. Buy Discount Gift Cards in Advance

Discount gift card sites let you buy other people's unwanted cards for less than they're worth. For example, if you bought a $200 gift card to Amazon, yet you paid less than that for it, you actually made a profit on the purchase.

“Buy a set of discount gift cards with every paycheck, and you’re good to go,” said Hunter.

8. Remember to Cash Out Your Gift Cards

Similarly, you can visit sites like Cardpool to sell old gift cards you received for stores that you don't like.

“Cash it out now. Sell it to a gift card seller (Cardpool), or use it to buy presents for someone else," said Hunter. "Though you might have every intention of using it, let’s be honest — you haven’t. So, get the cash off those gift cards, and put the money to use."

9. Become a Mystery Shopper

If you love shopping, apply to be a mystery shopper before the holiday season.

“Consumers might be surprised to learn they can get paid to shop or try new restaurants,” said Perez. “In exchange for unbiased feedback from everyday consumers, retailers, restaurants and other companies contract with mystery shopping agencies, and consumers can earn anywhere from $8 to $25 per assignment."

Step 2: Get Your Finances in Order

If you want to ease the holiday shopping burden, start thinking about your financial situation now. You might just be able to increase the amount in your savings account before the end of the year.

10. Open a High-Interest Savings Account

If you're looking to find the best high-interest savings accounts, online banks tend to offer better yields than their brick-and-mortar counterparts. That's because online banks don’t require much overhead to operate and can therefore give more money back to their members.

11. Open a Christmas Account or Sub-Savings Account

“There are many studies showing that the amount of savings increases when associated with a specific goal,” said Megan Brinsfield, a financial planning director at Motley Fool Wealth Management. “Consider opening a new savings account that would only be used for gift-giving. This could be implemented for the holidays, but would also help year-round as you get invites for weddings, baby showers, birthday parties and housewarmings.”

While they might sound like gimmicks, Christmas Club accounts have actually existed for decades, said Bobby Lee of 2 Minute Finance.

“Opening a savings sub-account or a 'Christmas Club' account is still very useful," he said. "Save up $10 or $20 a month throughout the year, and put it in this specially created savings account. Then, cash out when it comes time to go holiday shopping."

12. Open an Online Checking Account

There are both benefits and drawbacks to using a checking account to save money. Because checking accounts don't usually set limits on withdrawals, rates tend to be lower than those for savings accounts.

Still, online checking accounts can offer competitive yields, such as the 1.11 percent rate available at online bank EverBank. Explore the benefits of internet banking and save money for your holiday shopping.

13. Open a Short-Term CD Account

People often think of certificate of deposit accounts as long-term savings options. However, banks also offer CDs with terms as short as a few months. As an added bonus, these certificates are insured by the FDIC.

Just remember you usually can’t take money out of a CD without incurring a penalty.

14. Build a CD Ladder

Starting a CD ladder can help you save money in the short-term as well as the long-term.

With a CD ladder, you open multiple CD accounts, some short and others long. You can use the short-term CD to gain flexibility, because you can withdraw money, while the long-term CD will build your finances over time thanks to its high APY.

15. Get a Money Market Account

Opening a money market account can be a safe and smart investment option in the current market. Although some short-term investments are meant to develop over a few years, you can use a money market account to grow your money in less time.

The FDIC insures your money market account, which can be opened online or in person at a bank branch. Money market accounts tend to require higher minimum balances but are designed to be short-term investment vehicles.

Step 3: Take Advantage of Tech

“There are so many ways to make today’s technology work for your money, especially for shopping,” said Mark Mazza, co-founder of PromoCodeWatch.com. “Retailers have mobile apps for their stores. Coupon and discount sites like PromoCodeWatch and RetailMeNot [have] the same thing, so it’s pretty easy to get tech to give you the best deal.”

16. Use Walmart’s Savings Catcher

“Walmart shoppers should download the store app for access to Savings Catcher, a tool that offers cash back in the form of a store gift card when something the shopper purchased is better priced elsewhere,” said Perez.

Download this app before the holidays to ensure you don't pay more than you should for gifts.

17. Use the Coupon Sherpa App

“Shop smarter by using coupons for groceries, retail purchases and restaurant bills and transfer whatever amount you saved to your holiday savings account,” said Perez. “You can download the Coupon Sherpa app for instant access to coupons to national retailers and restaurants, as well as local shops, eateries and service providers through the ‘Nearby’ tab.”

Perez recommends searching online for coupon codes and printing grocery deals before hitting the stores.

“For example, you can currently save 25 percent on furniture and 10 percent on everything else with a World Market coupon; 20 percent off your purchase with a Kohl's promo code; and $2 off Tide pods with a printable Tide coupon,” she said.

18. Use Swagbucks to Get Gift Cards

Frugal living expert Lauren Greutman recommended this tip for scoring gift cards on the cheap.

“Shop online through Swagbucks.com and earn points, which you can trade in for gift cards — then use these gift cards to purchase Christmas gifts,” she said.

But shopping isn’t the only way to earn points. Swagbucks also lets you take surveys, watch videos and perform other tasks to get points. As of Oct. 25, 2016, Swagbucks had awarded more than $150 million to its members.

19. Use the Google Chrome Extensions

Many sites have their own Google Chrome Extensions, including Offers.com.

"This extension allows you to see savings right from your Google search," said Sherin. "Whether you're looking up a new product or shopping at your favorite store, you can see your potential savings right away."

20. Get the BFAds App

Mobile shopping apps can help you save for the holidays and also grow your wealth over time.

"One of the must-have holiday shopping apps is BFAds, especially if you shop during the Black Friday sales and the weeks leading up to Thanksgiving weekend," said Brent Shelton of FatWallet. "Coined the 'WikiLeaks' of Black Friday breaking news, the BFAds app keeps shoppers on the cutting edge of all leaked ads, deals and comprehensive guides for what and when to buy, including product details, shipping costs, store hours, news on early access to doorbusters."

Shelton recommends taking time to compare item prices. Additionally, buy from mobile ads, utilize shopping lists and stay up to date on the latest Black Friday deals.

21. Use a Price-Match App

Before venturing out to shop, arm yourself with the latest technologies available.

“Price Match at stores using the Flipp app — this app brings up store flyers and then allows you to compare prices across stores," said Greutman.

22. Follow Favorites on Social Media Now

To maximize savings for holiday shopping, get social with your retailers, both online and in traditional stores.

“As social media reaches more and more of the masses, almost all nationwide retailers are using it as an effective way to interact with loyal customers,” said James. “If you do, be sure to 'Like' their Facebook page and follow them on Twitter as a great way to be kept in the know of new promotions and exclusive content and coupons."

23. Abandon Your Virtual Shopping Cart

You can score coupons for desired items in a very clever way.

“During the weeks leading up to Black Friday and beyond, try filling your online shopping cart with merchandise and then log out of your account,” said James. “By doing so, in many cases, it will trigger an automated coupon sent to your inbox pleading for you to come back and complete your purchase with the coupon. Coupons are often for free shipping, 10 percent, 15 percent and even 20 percent off your purchase."

“The key is to register with the site so they have your email address," he added.

24. Take Advantage of Black Friday Leftovers

In recent years, Cyber Monday has become one of the biggest shopping days of the year. You can use this new holiday to exploit Black Friday sales you might have missed by scoping out eBay on Cyber Monday.

“Why? Because countless ‘wannabe entrepreneurs’ snatch up the Black Friday leftovers and put them up on eBay for a quick profit,” said James. “But the good news for you is that with the saturated eBay market, you’re going to score a deal and end up paying only slightly more than if you had stood in line at 11 p.m. on Thanksgiving night.”

Step 4: Frugal Living

Savvy holiday shopping isn't just about the actual trips to the stores. In the months and weeks leading up to the holidays, making smarter, more efficient financial decisions can have a major impact on your bank account.

25. Make Groceries Pay for Gas

“Buy gift cards for the stores you plan on shopping at for Christmas from a grocery store that gives you gas points,” said Greutman. “You might as well earn a few tanks of free gas if you are going to be spending that money anyway.”

26. Declutter and Sell

Perez notes that selling unwanted clothing and other items can be a great way to make some cash for the holidays.

“Sell clothing at local consignment shops or online at ThredUp.com, RecycleYourFashions.com or TheRealReal.com (designer labels only); sell old gadgets and electronics at Gazelle.com, NextWorth.com or Glyde.com; and sell furniture and other big items locally through Craigslist or OfferUp," she said.

27. Lower Your Monthly Housing Costs

"Save a quick $300 by cutting 15 percent from your monthly housing expenses," said Steve Repak, certified financial planner. "With housing being one the biggest expense for a lot people, it is also one of the broadest. Mortgage, insurance, utilities, phone, internet and cable TV are a few of the items."

However, you don't have to cut out every expense. The goal is to be strategic about what you eliminate.

"Consider canceling your cable TV, getting rid of your landline if you have a cellphone and trading your cellphone plan for a prepaid plan if you only make occasional calls as a jump-start on your 15 percent goal," said Repak.

28. Reevaluate Your Phone Plan

Similarly, reassessing your cellphone plan is a key step in preparing for holiday shopping.

"The average user spends $90 to $111 a month on their phone plan. Cellular providers haven't made it easy for cost-conscious consumers to rein in their spending, either, with complicated billing plans that are difficult to decipher," said Benjamin Glaser, features editor of DealNews. "However, it's worth at least trying to untangle, as you might be able to cut back on your spending without having to change your usage."

29. Save Money With Rewards and Sign-Up Bonuses

You can begin saving money for the holidays now by applying for a rewards card with a sign-up bonus.

Compare: Best Rewards Credit Cards of 2016

“By getting the card now, you can start building cash back you can use to offset your holiday spending,” said Holly Johnson of Club Thrifty, adding that some cards offer cash to customers who spend a certain amount of money within the first three months. “With a signup bonus alone, you could have as much as $500 to spend on holiday shopping this year."

30. Use Credit Cards Responsibly and Redeem Rewards for Gift Cards

According to Steven Abrams, resident credit card expert of CreditCards.Offers.com, making the right decision on a credit card can pay off.

"Picking the right credit card early can allow you to negotiate lower interest rates ahead of the holiday shopping time period," he said.

Perez also notes that using a credit card responsibly can actually help increase your holiday budget. "If you typically use cash or debit card to pay for everyday essentials, consider switching to your reward-rich credit card to collect points which you can redeem for gift cards to use as gifts or as currency for holiday purchases," she said.

31. Cut Down on Impulse Buys

"Impulse buys are tough to avoid during the promotion-heavy holiday season. Last year, the National Retail Federation estimated consumers would splurge on themselves to the tune of $130 each," said Perez. "To avoid wasting money during the holidays, record every impulse product you considered but didn't buy and transfer that amount to your holiday savings and watch your fund grow."

32. Pay With Cash

Paying with cash is great preparation for the coming holidays.

"Pay for everything in cash or debit card for a few months to avoid a credit card bill during the holiday shopping season," said Jon Lal, founder and CEO of BeFrugal.

Getting a seasonal job is another great way to rack in some cash. Many stores hire extra people to help with the busy holiday season, and most of the jobs have flexible hours. You could also try side jobs such as pet sitting or wrapping gifts. Taking online surveys is another easy way to earn extra cash fast.

33. Start a Countdown Fund

Creating a countdown fund is another forward-thinking way to save for the winter holidays.

"This is where you put a specific amount of money aside each paycheck into savings designated for holiday shopping," said Deacon Hayes of Well Kept Wallet. "For instance, if you get paid every two weeks, set aside $200 [every pay period] until Christmas. In this example, after three paychecks, you would have $600 in savings. The earlier you get started with this plan, the better."

34. Save Up Your Cash Back

"If you have acquired cash back in your account at a website like BeFrugal, wait to request a payment until it is time to start shopping for gifts. The money can add up significantly if you use a cash-back shopping website every time you make a purchase online," said Lal.

35. Round and Save

Financial experts recommend rounding payments and saving the extra cash.

Said John Schneider of DebtFreeGuys.com. "When we're paid, we subtract whatever balance makes our pay an even $10 or $100 and transfer it into an account we've set aside for savings. If we're paid $225, we send $5 to our savings. If we're paid $1,225, we send $25 to our savings account."

36. Offer to Do Odd Jobs

Hiring yourself out for odd jobs before or during the holiday season can be a useful way to build up your savings.

"Ask friends, family and neighbors if there's anything you can help them with for a small fee or look up local opportunities in the 'gigs' section of Craigslist. You can also find jobs through TaskRabbit.com, or offer to watch someone's dog through Rover.com," said Perez.

37. Cultivate a Freelance Side Hustle

Paula Pant of Afford Anything suggests that full-time workers earn extra cash for the holidays by freelancing.

"Ideally this business should allow you to work from home, structure your own flexible time and set your own prices," she said. "Ultimately, you have three options: earn more, spend less or both. Focusing on earning more offers limitless potential."

Perez notes that individuals with writing or web design experience can find jobs using sites like UpWork. "Businesses big and small use this site and other services to outsource specialized tasks," she said. "Freelancing your skills is a great way to make extra money for the holidays and start a side hustle that can serve you for years to come."

38. Get an Employee Discount

Landing a part-time retail job over the holiday season is a great way to score an employee discount to help offset the cost of holiday shopping. Retailers like JCPenney, Macy's, Kohl's and Target hire tens of thousands of seasonal workers to help with the increase in traffic, while Amazon and other online stores seek out customer service representatives who can work from home in some cases.

Employee discounts from retailers range from 20 percent to more than 50 percent, helping you save money on gifts after your shift.

39. Clear Out Kids' Closets and Sell Stuff on eBay

“Right now is a great time to sell gently used toys and clothing on eBay,” said James, adding that you can use this money to fund your gift-buying efforts.

40. Take Advantage of Prepaid Credit Card Bonuses

There are plenty of smart ways to use credit cards to save money.

“I just recently took advantage of the NetSpend Prepaid Visa card, which gave me a free $20 when I added $40 to the card,” said James. “When doing my holiday shopping, I'll just use the card anywhere Visa is accepted and enjoy the free money.”

41. Participate in the Sharing Economy

If you have a spare room, parking spot, car or bike to rent out, you can take advantage of the sharing economy to amass more money for the holidays, said Perez.

“Getaround is a good source for renting your car; Airbnb and HomeAway are good options for renting a room or your home,” she said.

If you’re looking for apps to rent your driveway or parking spot, check out platforms such as MonkeyParking, SPOT and JustPark, according to The Penny Hoarder.

42. Do More Meal Planning

Cutting costs on meals can give you more money to spend around the holidays. And doing so shouldn't be too hard, as studies show that the average family wastes 40 percent of the food it buys.

"Spend less money on food by meal planning, eating food that is about to spoil in your fridge and pantry and then put these savings towards your holiday spending," said Schroeder.

43. Cut Your Grocery Bill

Teri Gault, founder of The Grocery Game, offers tips on cutting expenses in preparation for the holidays.

In order to save $100 a week, "hit the web before you hit the supermarket and stock up on sales. Just shopping smart without coupons could cut your grocery bill in half," said Gault. "If you want to use coupons, you could save an average of 67 percent and reap average savings of over $100 a week."

44. Brown Bag Your Meals

Most people know that eating out can drain their bank accounts. But few realize how much they could save by packing their own meals.

"Average savings per day is $20," said Gault. "Average weekly savings $100 per person."

She recommends buying frozen meals at the grocery store, making coffee at home instead of stopping at Starbucks and filtering your own water instead of using disposable bottles.

45. Make Saving Automatic

Automatic banking processes can make saving for the holidays a breeze.

"Set up automatic withdrawals every month that go right into a savings account meant for presents," said Barry Choi of MoneyWeWave.com. "This way, you'll have the cash in advance of the holiday season."

46. Suspend or Cancel Your Subscriptions

Subscriptions are one area in which automated finances aren't your friend. If you have multiple automatic withdrawals from your bank account, consider canceling a few to cut costs.

"Read the news online or download a free mobile app to get your news. Visit magazine websites online or enjoy Pinterest. You could even check out magazines at the library," said Gault. "Depending on how many magazines or newspapers you get, you could save $5 a week or more."

47. Cancel Your Gym Membership

The savings from canceling or suspending your gym membership work out to about $10 a week, said Gault.

"If you have a FitBit, use it. Find a friend to do the 'buddy system' so that you’ll stay committed," she said. "Get any number of free apps on your cellphone to target specific areas: abs, legs, arms."

48. Have a Date Night at Home

Money plays a big role in your love life, and that includes dating. In the weeks leading up to Thanksgiving, Christmas, Hanukkah and other holidays, reducing your date nights out on the town can help boost your budget.

"Instead of buying two tickets to the movie theater, overpaying for popcorn and cokes, stay home," said Gault, who also recommends borrowing DVDs from friends or libraries. "By watching at home, and making your own popcorn and treats, and maybe even a glass of wine, you can save $35 to $50 on date night."

49. Use Your Workplace to Your Benefit

You can find many small ways to save money by utilizing perks at your job. For example, bring in Tupperware containers to harvest leftovers from work lunches and events.

Another pro tip is to charge your electronics at work. Even small electricity savings add up over time.

50. Pay Off High-Interest Debt

In order to reduce your stress level during the holidays, consider getting rid of your most pressing debt now. Focus first on paying off the debt with the highest interest — not the highest balance. But take note that you should pay the minimum balance on all your other debts, according to the book "10,001 Ways to Live Large on a Small Budget."

This article originally appeared on GOBankingRates.com: 50 Easy Ways to Save for Holiday Shopping

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