Do This To Avoid Holiday Overspending

How many people spend more than they’d like to during the holiday season? Nearly half, since a Bankrate survey found that 45 percent of people felt pressure to overspend during this jolly time of year.

Keeping this in mind, let’s look at some ways you can keep more cash in your pocket to avoid the financial stress linked to spending too much.

1. Plan ahead.

Make an overall plan and stick to it. This begins with a budget that lets you know how much you have to spend so you can allocate expenses properly.

Without a budget in place, you have no guide on where you stand. You won’t know when you’re spending too much or when it’s time to cut back. In short, not having a budget will lead to overspending and debt that can haunt you in the long run.

Besides budgeting, make a plan of how you’ll shop. Will most of your purchases be online or at brick and mortar stores? Will you wait for last-minute sales or get your shopping done early? By making this plan of attack, you’ll feel less pressure and be able to make better buying decisions.

As a side note, don’t let early sales on Black Friday or Cyber Monday tempt you into impulse purchases. Just because something is on sale doesn’t mean you should buy it.

You can avoid this issue by making a list of who you need gifts for and what you plan to spend on each. Such a list will serve as a guide for when a gift is a necessity or just an impulse purchase to be avoided.

2. Stick to cash.

Buying gifts on credit cards costs more due to interest. It also makes it easier to overspend since you won’t feel that separation anxiety of letting cash leave your hand.

The convenience of credit cards can lead to a slippery slope of buying things you don’t need. Once you see your credit card statement later on, you may regret using them, so stick to cash instead. It’ll limit you, which can make you stick to your budget.

3. Offer experiences or favors instead of gifts.

Many people don’t use the gifts they receive. You can use this to your advantage and save cash by offering experiences instead.

For instance, you could offer a grandparent a full day of fun as you enjoy a picnic together at a park. Or you could offer a friend or family member a particular house chore, like helping them paint. In doing so, you save and give them something more precious than any material item, which is your time and attention.

4. Do gift exchanges.

Do you have a vast network of friends and family? If so, you may want to suggest gift exchanges to limit how many items you must buy.

Secret Santa is great for families or work situations where many people are involved. Each person will buy just one gift, and it usually has a spending limit to guarantee savings.