How to Not Overspend This Holiday Season
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The holiday season is quickly approaching and for many of us that means time with family, lots of delicious and coma inducing meals around the dinner table, and gifts! While all of these things sound amazing, that last one can be a little anxiety inducing especially after these last two years have put a damper on finances for many Americans. However, this holiday season does not have to be stressful. This year, rather than let your wallet do the talking, ask yourself these questions first and learn how to not overspend this holiday season.
1. What is my Budget?
This sounds like a no brainer but it’s easy to get caught up in the spirit of the season and overspend. Too often we forget someone on our list and run out last minute, or maybe go a little overboard with our spouse or partner. Setting a budget ahead of time will help keep you focused on the task at hand and help reduce some of the anxiety that comes with shopping. Start by listing all individuals on your holiday gift list and divide them into tiers according to how much you plan on spending. For example, a spouse, parent, or child may be in tier 1 or tier A while your friendly mailman or coworker may end up in tier 3 or tier C. The point of this exercise is not to devalue people but to help assign perspective. Spending $500 on your spouse for a new purse or watch seems reasonable, but probably seems irrational to spend that amount on your mailman.
2. Can I Get Away with Buying in Bulk?
Before you dismiss bulk shopping as something reserved for weekends at Costco, hear me out. Bulk shopping for your parent or spouse may not make much sense-after all, while your father in law may enjoy a new lawn mower, your wife may not. However, when it comes to certain individuals or even entire tiers of individuals on your list, shopping in bulk may not only be the easiest method, it may also be the most appropriate. For example, consider buying a case of your favorite wine and distributing it to your favorite coworkers with a nice personal note. Purchasing the gift in bulk not only saved you time and money, but also created an even playing field for people who may take notice of what the other person receives. The gift was purchased in bulk, but the individual notes allowed for personalization. Additionally, gifts like this show appreciation and good holiday spirit without crossing too personal of a line in a professional environment and help you not overspend.
3. What is My motivation behind this gift?
If buying an expensive gift is a means to a promotion or better relationship, I can already tell you’ve spent too much. Holiday gifts are meant as tokens of appreciation and love for those we care for in our lives. Spending exorbitant amount of money on gifts in the hopes of love or attention returned is foolish. Spending money on gifts should be treated like loaning money to friends. Consider it a one way street and don’t expect the payback. Identifying your motivation may actually help cross some people off your list and help you avoid overspending this holiday season.
4. Can i get creative?
Designer bags and new electronics are nice but they’re not the only gift in town. Preparing a dish of homemade goodies or a beautiful card is a wonderful and thoughtful gesture. There are other ways to express your gratitude and not overspend this holiday season. If you are not much for DIY and still prefer fancier gifts, consider shopping at discount designer stores that offer the same great merch you can find in store, but at a much more discounted price. Gilt, Rue Lala, Tradesy, The Luxury Closet, and Rebag are some of my favorites.
5. Will making this purchase impact my financial goals or obligations?
We all want to give to those we love. However, gift giving especially during the holidays should NEVER come before your other financial obligations. While your wife may appreciate the purse you bought for her, she won’t appreciate ConEd turning off the lights because the bill wasn’t paid. To avoid these situations, try saving a little bit ahead of time or shop earlier to spread out your spending. Always remember that the people in your life who truly care for you would rather see you succeed financially then struggle to buy gifts.
Gift giving can be a great pleasure but not if it causes anxiety or financial troubles. Remember to ask yourselves these questions before entering your credit card info and you’ll learn how to not overspend this holiday season.