Amid the joy of the holiday season, there is a harsh reality — nearly six in ten Americans do not have enough savings to cover an unexpected expense like a $500 car repair or a $1,000 emergency hospital bill, according to a Bank survey conducted by Princeton Survey Research Associates International.
While 83 percent of U.S. consumers are expected to spend $1,189 this holiday season, an amount equal to or greater than what they spent last year, there’s no reason to start the new year in poor financial shape if you plan smartly and spend wisely. Here are some great ways to cut your seasonal spending without diminishing the joy.
• Know your limit. Calculate how much you can spend on gifts, decorations, etc. Divide the total amount into a limit per gift. If it doesn’t work out, trim the gift list or consider making a baked item or another homemade gift, or giving a voucher for a service you can offer, like babysitting, car washing, or house cleaning.
• Shop smart. Keep an eye out for special sale days and coupons. Many online retail sites offer free shipping, discounts, and other 
promotions during the holiday season. After the holidays, look for deep discounts on wrapping paper and greeting cards to save for next year’s celebrations.
• Spend differently. New ways to pay for items can make budgeting organized and straightforward. Check out specialized online retailers like Purchasing Power, offered by many employers as a voluntary benefit, which gives workers the opportunity to purchase thousands of products from well-known brands they need now, with manageable payments over time through payroll deduction. With no credit checks, hidden fees, or interest, it’s a service that can provide more flexibility during a traditionally expensive season.
“It’s not always possible to pay for high-ticket items upfront when you need them, whether buying a tablet for your teen during the holidays or a family vacation package next summer,” says Elizabeth Halkos, Chief Operating Officer of Purchasing Power, LLC. “We created this solution to empower people to budget more wisely and buy what they need, avoiding penalty fees and exorbitant interest associated with other payment options.”
Ask your employer if an employee purchasing program and financial wellness benefit like www.PurchasingPower.com is available for your team.
Some additional budget-friendly options for the holidays:
• Suggest a family gift exchange. Avoid the spending and frustration of trying to find gifts for every member of your extended family. Instead, draw names and find 
something special for just one person. For more fun, play “Secret Santa,” keeping the identities of the gift givers a secret until the exchange.
• Spend time together. Instead of gifts, gather everyone during the holidays. Have a board game night or a day of volunteering, like serving meals at a shelter.
• Enjoy the season. There are many ways to celebrate while spending little or nothing. Snuggle up for a holiday movie marathon, bake cookies, or look for free holiday concerts in your local area. Malls and community centers often offer a schedule of free holiday entertainment.
For a better financial start to the new year, spend wisely this holiday season. Smart budgeting and new payment options can make this easier.
Source: StatePoint