It’s no secret that people love to buy gifts for their loved ones. Every year, the holiday fewer takes over, and people are eager to spread joy. However, it is important not to go overboard. If you accidentally splurge, consumers typically end up regretting their shopping sprees.
Thus, it’s critical to keep a budget in mind since it enables you to stay true to your financial objectives and use your money wisely.
Here are some good tips for you to manage your spending during the holidays.
Set a Spending Limit During the Holidays
Setting a spending cap is crucial when it comes to maintaining your holiday budget. By setting a strict limit for yourself, you will feel more inclined to stick with your budget and won’t overspend unnecessarily.
It is also a good idea to suggest a price limit between family or friends. Then, none of you will overspend on gifts. It will also help you ensure that you are sticking to your budget while still getting what you want for everyone. Setting a price range stops you from buying something too extravagant for one person while not getting enough for someone else.
However, try setting a flexible spending cap that allows for some flexibility within certain parameters. In that way, you won’t feel as restricted.
Prioritize and Make a List
We often find ourselves buying things just because they’re on sale or we saw a great deal for something that we don’t even need. During the holidays, buying too much is quite common as retailers push us to spend more than what we want or need, especially if it’s a store you don’t usually shop at. According to Fox Business, 70% of Americans fail to stay in line with their budget during the holiday season.
It is a good idea to make a list of the things you plan to buy. If possible, order them online to avoid accidental splurges once you are in the physical store. After all, it is easy to get overwhelmed and start purchasing random gifts for yourself.
Start Saving in Advance
If possible, try to start saving up in advance during the summer for holiday spending. Having some of your own money saved up makes it easier to stick with the plan without sacrificing too many items or breaking the bank account.
You can start saving today by setting up a savings account specifically for holiday spending. Once you have that set-up, put some money away weekly or monthly to slowly build up your holiday spending pot. This way, it’s easier to stick to your budget since you know exactly how much you have available. Also, don’t forget about unused funds from last year – try bringing those leftover dollars into play as well.
Keep Track of Your Expenses
One of the biggest reasons for overspending during the holidays is simply forgetting how much you’ve spent. It happens to everyone, especially when there are many things to buy and places to go. So, keeping track of your spending throughout the season will help you from going too overboard on holiday purchases.
To help build awareness of what you’re buying, try using a notebook or smartphone app that keeps a log of your daily spending. This way, every time you purchase something, it will be recorded so that next time, check if it’s still within your budget or not.
Look For Affordable Alternatives
One of the best ways to make sure your money doesn’t go anywhere is to look for affordable alternatives. Many other options can be as good or even better than what’s being advertised in most cases.
If you’re preparing to go out for a nice dinner, then don’t rule out looking into cheaper restaurants in the area – they most likely have great deals and special offers too! Also, during shopping, keep an eye out for promotions or discounts from stores around you.
Sometimes it pays off to shop online as you can find discount codes or coupons online. Additionally, Virtual Private Networks are great for avoiding price discrimination, a practice when certain clients will pay more than others for the same products. Tools like Atlas VPN can help you change your IP address and, in turn, your location so that you can avoid location-based discrimination.
Use Credit Cards to Track Expenses
For most, credit cards are a helpful way to keep track of spending. In fact, by linking different expenses, it’s easier to see where you’re at financially and determine whether you have enough for that next purchase.
In addition to linking expenses together, it is also possible with many banks/cards to set up free text alerts that will notify you every time your account reaches a specific limit (such as when maxing out the card).
Most of the time, overspending is just a result of not being organized enough during the holidays. So, if you can figure out your holiday budget beforehand, it will be much easier to stick with your spending plan without going overboard.
Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.