Home for the Holidays: 5 Tips To Stretch Your Budget in a Season of Inflation

Tis the season for....inflation? Ok, that's a bit tongue in cheek, but the great news is: you don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.

And, don't worry about keeping up with the Joneses...according to multiple surveys, inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.¹  So, you won't be the only one bargain-hunting your way to a more financially-stable New Year!

Here are some strategies you can use to boost your holiday budget by trimming household expenses:

1. Hunt for Deals on Groceries

With the U.S. food-at-home index (a measure of grocery price inflation) at a 43-year high, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.²   That could make pulling off holiday gatherings especially stressful. But don't despair: simple swaps and searching for discounts are a great way to bridge the gap.  The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts.

For example, you can snap digital deals by utilizing coupons on your smart phone or even try buying non-perishable items in bulk, especially when they’re on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. My kids love doing "taste challenges" with food brands.  And, honestly, it can be pretty fun!  

2. Prep Your Home for Holiday Guests With Pre-Owned Finds

You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand.

Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stores like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.³

A recent study found that the “recommerce” market grew almost 15% last year, which was twice the pace of general retail.⁴ Plus, buying used isn’t just a great way to save money, it also helps the environment by keeping reusable items out of landfills.

Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. “A house doesn’t have to be perfect or completely done for it to feel festive or inviting,” designer Justina Blakeney noted in an interview with the Washington Post. “These are family and friends, and they are not judging you.”⁵

3. Forgo Major Renovations in Favor of DIY Home Improvements

Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget –—and unnecessary stress to your holiday.

Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself.

One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colorful. These are festive enough for the holidays, but also versatile enough to use year-round.

4. Invest in Home Maintenance Projects That Cut Your Utility Bills

You can save money by completing basic home maintenance tasks , such as swapping your AC filter and updating your lightbulbs to LEDs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient, which will open up some of your budget for the holidays.  According to the U.S. Environmental Protection Agency (EPA), you can save a couple of hundred dollars a year just by sealing your home and boosting its insulation.⁶ 

According to the EPA, 9 out of 10 homes in the U.S. are under-insulated, which wastes energy and money.⁷ Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, the EPA offers guides on how to:

• Insulate your attic or crawl spaces
• Weatherstrip doors and windows
• Seal areas around the house that may be leaking air, including electrical outlets and fireplaces

The savings you get from these projects can really add up. The EPA estimates that sealing and insulating your ducts can make your HVAC system up to 20% more efficient.⁸ And thanks to new provisions from the Inflation Reduction Act, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax credit.⁹ Be sure to check with us about any local rebates and incentives that may be available, too, before getting started on a project. We know lots of great deals!

5. Use Expense Tracking to Boost Your Holiday Budget

To avoid overextending yourself during the holidays, one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.

For example, below is a sample budget worksheet. Start by adding in your expenses: Under the “Typical” column, you can list your standard expenses, and under the “Adjusted” column, list any areas where you could cut back on spending.

Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.

Feel free to utilize this worksheet as a template that you can personalize to your needs, or ask us for a PDF copy that you can print out and use right away.

WE’RE HERE TO HELP

We would love to help you meet your financial goals now and in the year ahead. Whether you want to find lower-cost alternatives for home renovations, maintenance, or services, we are happy to provide our insights and referrals.

And if you’re saving up to buy a new home, of course YOUR Home Team would LOVE to help with that, too. This is the perfect time to score a great deal because only the most motivated homebuyers and sellers are active in the market right now. So reach out to schedule a free consultation. We can fill you in on some of the exciting programs and incentives we’re seeing that help make homeownership more affordable. 

Much love, 

Amanda AKA The Marketing Mama

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Retail Dive -
   https://www.retaildive.com/news/inflation-drives-shopping-changes-consumers-survey/629973/
2. NBC News -
   https://www.nbcnews.com/select/shopping/how-save-groceries-ncna1299053
3. USA Today - https://www.usatoday.com/story/money/retail/2022/10/05/goodwill-launches-online-store-goodwillfinds-website/8185084001/
4. CNBC - ​​https://www.cnbc.com/2022/09/14/secondhand-shopping-is-booming-heres-how-much-you-can-save.html
5. Washington Post -
   https://www.washingtonpost.com/home/2021/11/09/holiday-entertaining-tips/
6. S. Environmental Protection Agency - https://www.energystar.gov/campaign/seal_insulate/why_seal_and_insulate
7. S. Environmental Protection Agency (EPA) - https://www.energystar.gov/campaign/waysToSave#!card0-GW91
8. Energy Star -
   https://www.energystar.gov/campaign/waysToSave
9. The White House -
   https://www.whitehouse.gov/cleanenergy/?utm_source=cleanenergy.gov