Prices are Rising – How to Prepare for the Holidays Now – HerMoney | Gmx Pharm

Inflation increases the price of almost everything. Here’s how to pay for your holiday celebrations now.

Inflation is something we’ve been hearing a lot about lately. You’ve probably noticed that the prices of everything from groceries to gasoline have gone up. And those price hikes are likely impacting the price of your holiday celebrations — from travel plans to turkey dinners. We’ve put together some helpful tips to help you start saving now for your Christmas, Hanukkah, and holiday celebrations during this year of inflation.

SET EXPECTATIONS

First things first: determine how you want your Christmas party to look like. Thinking about how you want to celebrate and what gift-giving will look like ahead of the holidays can help you prepare for a happier holiday season.

With inflation driving prices up, you may not be able to go all out when it comes to holiday celebrations. If that’s the case, Sara Rathner, personal finance expert at nerd walletShe advises, “Start those tough talks now so you can get your loved ones on board with less expensive ways to celebrate.”

Elizabeth Pennington, CFP® Expert at Fearless financesShe adds: “Overall, it’s unlikely you’ll get the same amount of gifts for the same price this year.” She recommends taking a look at “what is most important to you when giving presents”.

She suggests being conscious of what you’re spending your money on during the holiday season: “Assuming you can’t have it all, what parts of the vacation do you want to prioritize? What parts are most important to you?”

VALUE WHAT YOU COULD SPEND

We don’t know exactly what will happen to the prices and if they will continue to rise. However, Pennington says, “Without making predictions, I think it’s a good idea to expect prices to keep going up.”

With that in mind, she recommends that you make an estimate of what you could be spending on the holidays this year. She advises taking a look at spending for the 2021 holiday season first. “If you’re happy with the level of spending over the past year, add 10% more to that number. Your goal is to save that amount over the coming months (minus any amounts already saved for the holidays).”

If that amount seems excessive, Pennington said you should “review your numbers and figure out where you can save and focus on which parts of the holiday are most important to you and your family.”

Finally, Pennington stresses, “The last thing we want is to accumulate consumer debt for gifts/holiday parties. No gift is worth that.”

SAVE NOW

Rathner recommends starting your holiday savings now: “Don’t wait until November to see how much money you have in your budget for the holidays. Now is the time to put money aside each month so you have the cash to buy gifts without going into debt.”

Pennington agrees, and typically advises her clients to “save monthly for holiday expenses (and other larger annual expenses) throughout the year.”

SAVE YOUR VACATION SAVINGS

If you don’t think you’ll be tempted to spend the money you put away, Pennington says you can simply add it to your existing account. You can then track your vacation savings in an app or spreadsheet you already use.

However, some people might see this extra money in their account and be tempted to spend it. In this case, Pennington thinks “it’s definitely worth starting a separate savings account.” She adds that you’ll want to choose an account with no fees, however.

Pennington suggests, “The most important thing, especially if you’re saving in a segregated account, is that you set up automatic transfers (or even better, direct deposits from your paycheck) so you don’t see the money before it’s ready to use.”

BREAK THE SALE

“Between now and the holiday season there are many opportunities to shop during the seasonal sales. Plus, you save yourself the stress of last-minute searching for the perfect gift,” notes Rathner.

Pennington has similar thoughts, even preferring to buy gifts year-round. She recommends setting a per-person budget and watching for sales or using online price alert tools. She also suggests exploring the idea of ​​homemade gifts if you’re on a tight budget.

JUMP ON TRAVEL PLANS

For those who need or want to travel this holiday season, it’s a good idea not to wait too long to make your plans. Rathner explains: “Ticket prices are increasing – and flight availability is decreasing – as the holiday season approaches. Start pricing your itinerary a few months in advance.”

If you’re planning to go on vacation but have a bit of flexibility, this could work in your favor. For example, Pennington points out, “If your family is okay with celebrating Christmas on the 26th (and agrees to give Santa the memo), flying on the holiday itself is often dramatically cheaper.” She also says that you Credit card points could be used to buy tickets or “add a day or two to your trip so you don’t fly at peak times”.

Her other tips include booking tickets today – assuming they are refundable tickets in case you need to cancel later. And you could set price alerts on flights so you can book when the price drops to a level you are comfortable with.

PLAN AHEAD FOR YOUR HOLIDAY

We can’t predict the future, but there are a few steps we can take today that will save our wallets when the holidays arrive. Now is the time to start saving and you might also want to book flights if you know you will have to travel. You still have a few months to keep an eye on the special offers and snag some Christmas gifts at a nice discount.

The bottom line is that you should make your holiday celebrations intentional and realistic, especially in a year of inflation. As Pennington notes, “The real danger is the feeling that inflation will automatically force you to spend more.”

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