Planning for the holiday season can be very exciting but also tedious and expensive. Most of the time we, gravitate toward expenses like the holiday meal and Christmas gifts, but there are so many other expenses to consider.
When you forget about an expense but you end up paying for it anyway, you’re more likely to overspend and risk getting into debt.
Here are 5 unexpected holiday expenses to consider this year and how to deal with them so you don’t get blindsided.
1) Warranties and Add Ons
When you’re buying certain gifts for family and friends this season, you may be asked to purchase a warranty for the item to protect future out-of-pocket costs if anything happens to it.
This is mainly the case with electronics and I’ll be the first to admit that I almost never anticipate the added costs.
If the store clerk doesn’t ask you about a warranty, they may try to up-sell you with an add-on feature or service at a discounted rate. If you don’t purchase the add-on then and there, the ‘low’ price won’t be available to you anymore.
I recently purchased a new laptop from Best Buy and while my computer came with a manufacturer’s warranty, I had to decide if I wanted to pay for the Geek Squad’s service upfront among other added features and services.
It’s hard to decide sometimes when you’re at the checkout and the decision-making process seems rushed.
Luckily, warranties are really not that expensive depending on what you buy so if it’s an extra $10, it might be worth it in the future.
Also, don’t hesitate to ask the store clerk to go into detail about what type of protection you would get. This is important to know and don’t worry about holding up the line for an extra 2 minutes.
With add-ons, try to be realistic and consider what you’ll really need and use. Just because something is on sale, doesn’t mean you should get it.
If you know you can’t afford the add-on, don’t even make purchasing it an option. There will always be other sales, and it makes no sense to get into debt over a holiday purchase.
2) Holiday Decor
The price of holiday decor is something a lot of people don’t think about or budget for. Most of us decorate our homes for the holidays to make it cozier or get into the spirit of the season, but those items can add up.
The good news is that you don’t have to purchase holiday decor every year and it’s okay to just reuse the same things year after year.
However, when something breaks or you need something new, try looking for used items first, then consider holiday sales, along with the options at the dollar store.
Aside from my Christmas tree, I’ve never shopped for holiday decor at any other store except the dollar store. They always have plenty of unique options to choose from so I see no need to search for pricier options elsewhere.
Ornaments for your tree can get expensive too so I always make it a habit of finding donated ornaments for free.
3) Postage
The post office will be crazy busy over these next couple of weeks since everyone will be mailing holiday cards and gifts to relatives and friends. If you have out-of-town family members, your postage costs could easily skyrocket this holiday season.
If you usually mail out Christmas cards, you can try handing them out in person to friends and family in your area or even sending e-cards to out of state relatives. They’re free and easy to make as long as you have a high-quality digital photo.
Smilebox is a free program you can download to your computer to create digital Christmas cards. You can also design your own cards on sites like Canva and PicMonkey.
When you’re mailing other items, the costs will vary depending on the weight of each item and where you’re shipping it to.
The USPS website has a page that allows you to estimate the price of shipping domestic and international packages so you can better prepare for the shipping costs.
If you’re worried about weight, try using flat rate boxes that the post office provides so you can put as much as you want in the box without worrying about weight.
Also, compare pricing from companies like UPS and FedEx and if anything, try to get your packages out early so you can pay for standard shipping and have the items still arrive in time.
If you are going to be traveling to visit family this holiday season, passing by someone’s house, or see someone who lives near your family that you can trust, opt to have their items hand delivered to their home so you can skip the post office altogether.
4) Pet Sitter
If you’re planning any travel this holiday season, don’t forget about the pets. If you can find a pet sitter for free by asking some family members or swapping services with a neighbor that’s great.
Everyone doesn’t have that option though so if you’re going to be gone for a few days you have to decide whether you want to bring your animals with you or hire a sitter.
If you are just going to a family member’s house for a few days, you may be able to bring your pets with you if they are okay with it.
Otherwise, you can head to sites like Care.com or Rover to find a pet sitter in your area that you can afford. You may even be able to work out an affordable rate with a neighbor you know well to come in each day and feed your pet or walk your dog.
If you want to keep pet sitting expenses low, require that the pet sitter only does the bare minimum like checking on your animal for a few minutes, feeding them and refilling their water, and making sure they’ve gone to the bathroom.
If you don’t need someone to spend an entire day with your pet or stay overnight, don’t pay for the added service.
5) Gifts for Coworkers
Workplace gifts and parties can easily slip your mind when you’re focused on what you will get the kids and other family members for the holidays. Buying gifts for your boss or people at work can put a lot of pressure on you but if you don’t have the money, the decision should be simple.
I never really purchased gifts for people at my day job because I felt like if I did, I would have to get something for everyone. My last job was small but I still just stuck to bringing in food and treats because I figured that would be much cheaper.
I also gave out family Christmas cards last year to my boss and whoever wanted one. There are plenty of ways to spread holiday cheer at your job without buying gifts and spending a ton of money.
If your coworkers throw you off guard by wanting to exchange gifts this year, it can make you feel kind of out of place if you’re not used to it or didn’t budget much for that added expense.
In that case, try recommending a Secret Santa gift exchange if you still want to participate. That way, you only have to get one gift instead of several different things for everyone.
Take Time to Plan Out All Your Holiday Expenses
When it comes down to it, preparation is key. When you only have a fixed amount money to spend during the holiday season, unexpected expenses can seem tragic.
Instead of being stressed out financially this holiday season, plan out all your expenses in a spreadsheet so you know exactly what you intend to spend and how much you have to spend. Focus on the important things and minimize the costs for expenses you deem unnecessary or eliminate them.
Check out these articles for more tips on how to handle holiday expenses and shop smart:
Have you ever been blindsided by hidden holiday expenses? How are you preparing your budget for the holidays?
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Great reminder! I consistently forget about the postage and work gifts! My husband’s coworkers always have a gift exchange that he’s scrambling to buy – will have to plan ahead this year.
Yes, definitely plan ahead! My husband’s coworkers always have lunch envy when he brings some of the leftovers I cook so I promised a lady that works with him that I’d cook/bake something special for his small team around the holidays. That might allow him to wiggle out of any gift exchanges :)
One of the things I recently learned was that using your credit card allows you an extended warranty through your credit card. Each credit card is different but some double the warranty period for electronics. This is a great feature :)
I have heard about that before but I’ve never utilized it actually. It would be nice to try out this holiday season.