Plan now to get ahead on holiday shopping, spending

Sorry to say, even though we’ve enjoyed a spell of unseasonably warm weather, summer is nearly over. Now it’s time to start thinking about Black Friday and your holiday budget.

It sounds hasty. School just started and we have weeks of snuggling up in cozy sweaters while sipping pumpkin spice lattes ahead of us. However, now is a good time to get a handle on your holiday budget — before the summer tan fades and the first leaf falls — because the most wonderful time of year can also be the most expensive.

Americans spent on average $1,500 on holiday purchases last season, according to a study by Deloitte. Scrutinize your holiday spending now and you’ll be better prepared for all those seasonal expenses — gifts, food, travel, parties and decor. You’ll also be less likely to overspend, or worse, start the new year saddled with debt. Here are some tips to help get ready for holiday purchases.

Set a budget and steer clear of credit. Review your finances, tally your upcoming bills and determine how much you can comfortably allocate over the next several weeks so you aren’t unwittingly tapping into credit. The Federal Reserve’s benchmark interest is up and that makes borrowing money and carrying a credit card balance more costly. The average credit card interest rate is 22.68 percent for new offers and 20.68 percent for existing accounts, according to financial services site WalletHub’s Credit Card Landscape Report. If you charge $1,000 and pay just 5 percent of the balance each month — or $50 — it will take more than two years to pay off the balance and cost you an additional $240 in interest.

Devise a gifting game plan.

Now is the time to decide who gets what. Jot down a list of names and determine how much you intend to spend on each recipient’s gift. If you already know what you’ll give, great, write that down, too. If you plan now you can pounce on sales and promotions as they pop up between now and Christmas. And, if you’re worried about how much to spend, stretched too thin or feel as though the entire gift-giving ritual has too routine, now is a good time to establish gift-giving guidelines by engaging in open dialogue with friends and family.

Hoard credit card rewards for holiday expenses.

If you use a credit card for routine expenses with the intent of paying off the balance every month, you can quickly rack up rewards that can be used for a multitude of things. I use the Chase Sapphire card which not only allows me to use points toward travel, but also hundreds of participating retailers including Amazon. Some credit cards also allow you to earn cash back on purchases. You can earn anywhere from 1.5 percent to 5 percent cash back on select purchases with some of Capital One’s credit cards.

Book holiday travel now.

Travel industry experts would tell you that you should have booked your holiday flights before your first summer swim, however holidays can be hard to plan. It is still possible to land airfare that won’t send your finances into a tailspin, but you’ll need to book as soon as possible and be flexible. To save, track airfare with Google Flights and try to avoid traveling just before or just after Thanksgiving and Christmas. You’ll likely pay more. If you have no choice but to travel on a day that is among the most expensive, consider opening an airline travel credit card that offers sky-high bonuses, free air miles and other benefits.

Trim everyday expenses.

Inflation is still high and it feels like just about everything costs more. There are some painless ways to cut costs and pocket potentially hundreds of extra dollars for the holidays. One of the easiest and most effective ways to save is automatic. Have your employer direct a certain amount from your paycheck each pay period to a savings account. You can also have your bank or credit union transfer a set amount from your checking to a savings vehicle.If you’re looking to save a few bucks, you might want to also consider canceling one (or more) streaming services, at least temporarily. Also, try eating out less. According to the Bureau of Labor Statistics, Americans spend roughly $200 a month on food outside the home. Dial that discretionary spending down and you can add several hundred dollars to your holiday budget.

Make money to save money.

There are a number of ways to earn some extra spending money for the holiday season. Host a yard sale while the weather is still nice, sell stuff on eBay, Poshmark, Craigslist or Facebook Marketplace. Drive for Uber or Lyft or deliver food for a service like GrubHub and DoorDash.

Good at math? Tutor students in your neighborhood or sign up to do so online at sites like Tutor.com, TutorMe and Studypool. There are countless legitimate online research survey sites that pay participants to watch videos, play games, accomplish tasks and partake in surveys. Swagbucks, Opinion Outpost, Toluna and Inbox Dollars are just a few. Lastly, whenever you shop online, be sure you’re earning cash back through portals like Rakuten.com or RetailMeNot.com.