8 ways to ride out the holidays with your wallet intact 

NOVEMBER 18, 2020

This year has turned our lives upside down and forced us to adapt fast to COVID's curveballs. There’s no reason to approach the holidays the same way as years past when money’s tight or even uncertain. Got a game plan for how to get through the holidays without a massive money hangover in 2021?

TIP #1: Set ground rules with the fam.

Have a heart-to-heart with friends and family about your holiday budget and lay down rules for how much you can each contribute to the season. Perhaps you organize a socially-distanced potluck and skip single-handedly hosting a crazy feast with crazy grocery bills? Or coordinate a Secret Santa exchange so you're responsible for gifting 1 person, not 20 people? Money is tight all around, so you'd be doing everyone a favor.

TIP #2: Crunch the numbers.

Estimate your after-tax income through the end of the year and subtract essential expenses, recurring bills, and savings you've planned to set aside. That’s the max you should spend on the holidays, so prioritize what matters to you — gifts, food, decorations — and use Empower Spend Tracking to keep yourself in line. For reinforcement, post your holiday budget somewhere in-your-face like your bathroom mirror or phone home screen.

TIP #3: Buy, return, rebuy (repeat).

Many retailers are hurting so expect spectacular sales to run all season long. Hunt patiently for the best deals and, even after purchase, check back regularly to see if the price drops. Because if it does, request a price adjustment, or return your original purchase and rebuy at the lower price. Paying close attention could pay off big for you this holiday. Remember to save receipts and check return policies wherever you shop.

TIP #4: Resist the urge to pillage your emergency fund.

Tough love here, folks, the holidays are not an emergency. While it's been a rough year, avoid comfort-shopping and spending extra on the holidays to emotionally "make up" for the last 9 months. Don't blow your rainy day savings on anything other than something truly urgent. (You'll thank us later.)

TIP #5: Make it tougher to shop 24/7.

If you know you're susceptible to retail therapy or emotional spending, then unsubscribe now from all brand emails. Stop following brands on Instagram for the next few months. Remove your cards from Apple Wallet or Google Wallet. In other words, build some friction between you and that “buy now” button. When the holidays are over (with your bank account still in one piece!), you can always resubscribe and reconnect.

TIP #6: Shop and sell secondhand.

The awesome treasure hunt that is TheRealReal, Facebook Marketplace, and thredUP has made shopping delightful again. Discover gift-worthy finds, gently used, at bargain prices — and snag some extra income while you're at it by putting your own stuff up for sale. Giving great products a second life is good for your wallet and good for the earth.

TIP #7: Ditch your credit card and go debit only.

Yes, credit cards offer rewards blah-blah-blah, but they're also the easiest, fastest way to out-of-control spending, AKA a gnarly debt trap. And then all you’re left with in January is a crushing money hangover and regret. Shopping with your Empower Visa Debit Card will ensure you spend only what you have.

TIP #8: Remember, you can’t buy love.

Still trying to drum up gift ideas at the 11th hour? Brainstorm non-monetary ways to show you care. Your BFF will 100% love that plate of yummy oatmeal walnut cookies you baked just for her, and Dad will tear up over any homemade card you send his way. It's your affection that counts.

Need help with your money?

We all do. Download the Empower app to get cash instantly, spend more mindfully, and save automatically.