Home for the holidays: How to Stretch your Budget in a Season of Inflation
You don’t have to break the bank to celebrate the holidays in style – even in this inflation season. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out savings.
For example, you can trim your energy bills by up to 20% just by sealing air leaks in your home. Other minor fixes—such as swapping out old light bulbs for LEDs and plugging electronics into a power strip. Thanks to a pandemic-era boom in online shopping, it is easier to find deals on new and used 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.
You won’t be the only one bargain-hunting your way to a more financially stable New Year. Multiple surveys have found that inflation is not only chilling people’s spending but also is prompting shoppers to search for better deals and creative ways to reduce their bills. Here are some strategies to boost your holiday budget by trimming household expenses.
HUNT FOR DEALS ON GROCERIES
If you’re finding it harder than it used to be to serve your family dinner on a budget, you’re not alone. With grocery prices rising rapidly, many families struggle to control the costs of food staples, such as meat, dairy, produce, and grains. This has made pulling off holiday gatherings incredibly stressful. 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, 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. As you tap into your inner bargain hunter, you could be surprised by what you save when you’re more mindful of your selections. And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save time and money by scouting for deals online, digitally clipping coupons, and earning cash back through unique apps and browsers. For example, coupon aggregation sites, like Flipp, and shopping apps—such as Checkout 51 and Rakuten—make it easy to score discounts and cashback on various purchases, including groceries.
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. The number of Canadians who shop secondhand has grown. In fact, one study found that nearly three-quarters of Canadians now buy pre-owned goods of some type. Plus, buying used isn’t just a great way to save money; it also helps the environment by keeping reusable items out of landfills. Fortunately, it’s become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook and Kijiji. Don’t stress yourself out, though; if you don’t have the time or money to dress your home the way you hoped, that’s ok – tis the season, even if it’s not done up!
FORGO MAJOR RENOVATIONS IN FAVOUR 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 not to mention unnecessary stress to your holiday. Instead of suffering through a remodel, you’re better off saving this time of year for simpler, less expensive projects you can do yourself. Curl up by an indoor fire, and channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair for the winter season. Stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home’s resale value.
INVEST IN HOME MAINTENANCE PROJECTS THAT CUT YOUR UTILITY BILLS
You can save money by completing basic home maintenance tasks, such as swapping your furnace filter and updating your lightbulbs and if you really want to lower your bills this winter, consider projects that make your home more energy efficient. Research by the trade group NAIMA found that most homes in Canada are under-insulated, which wastes energy and money. Some projects you can do relatively quickly include:
Insulating your attic or basement crawl space
Weatherstripping doors and windows
Sealing 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. Natural Resources Canada estimates that walls alone account for roughly 20% of heat loss in homes, so they’re a rich target for tackling costly sources of air leakage.
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 tight, you may need to make some adjustments to free up cash for holiday expenditures. For example, here’s a sample budget worksheet that we created. 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 customize to your needs.
I’M HERE TO HELP
I’d 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, I’d be happy to provide insights and referrals. And if you’re saving up to buy a new home, I can help with that too. This is the perfect time to find opportunities because only the most motivated buyers and sellers are active in the market right now.
Reach out to schedule a free consultation today!
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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:
CTV News - https://www.ctvnews.ca/lifestyle/8-tips-for-saving-on-your-home-heating-this-winter-1.6116384
CBC News - https://www.cbc.ca/news/world/goodwill-online-store-1.6605808
MoneyWise - https://moneywise.ca/news/economy/canadians-plan-to-spend-less-as-retailers-brace-for-shopping-season
Statistics Canada - https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2022014-eng.htm
Statista - https://www.statista.com/statistics/998634/consumers-who-have-shopped-at-thrift-stores-canada/-
Retail Insider - https://retail-insider.com/retail-insider/2022/08/resale-going-mainstream-in-canada-with-consumers-particularly-valuing-brand-owned-resale-report/
NAIMA Canada - https://www.globenewswire.com/en/news-release/2016/10/27/1263857/0/en/New-Study-Reveals-Most-Homes-in-Canada-Are-Significantly-Under-Insulated.html
Natural Resources Canada - https://www.nrcan.gc.ca/energy-efficiency/homes/make-your-home-more-energy-efficient/keeping-the-heat/chapter-7-insulating-walls/15641
