How to Avoid Overspending During the Holidays
Do you ever get the feeling that companies are eavesdropping on your conversations, tailoring ads to your every whim? Like if you are talking about needing a new blender and all of a sudden you’re getting blender ads all over the place?
While it might not be as sinister as our phones listening in, the sophistication of marketing and data analytics can make it feel that way. Google and Facebook, in particular, have collected years of data from gazillions of transactions to the point where they can basically anticipate what ads we will respond to before we even know what we want.
And of course, the end-of-the-year holiday shopping season makes everything worse.
Whether you celebrate any of the end-of-year gift-giving holidays or not, it’s hard to avoid the constant barrage of Black Friday deals. This time of year, our social media feeds are packed with deals for 70% off mattresses, the latest tech, and holiday decor.
Why? Because it works.
We are primed and ready to buy things at this time of year. Many of us consider finding good deals a sport. Even if we’re not cutting people off in parking lots and trampling one another to buy the latest toy, we’re scouring the internet in search of the absolute cheapest new tv we can find.
I open my inbox this time of year and it’s a list of “Black Friday specials ending tonight” and “last chance to save 60%” on this thing you didn’t need until you saw the email.
And even if you’re not buying gifts right now, it’s hard to avoid the low prices on things that we’ve been considering anyway.
Marketers are masters of using psychology to get us to buy, but honestly, it’s not that hard around the holidays. Most of us want to be buying ALL of the things and we want to feel like we got a good deal while we’re at it.
It’s hard to resist. Even though I am generally conservative with money and am familiar with all the marketing tactics, I still find it hard to restrain myself. It’s like the holiday shopping season hits and all of my general rules go right out the window.
I’ve found that the key to not ending up with major credit card debt in January is to plan ahead and set intentions, and I’ve implemented some strategies to help me stay on track.
Strategies You Can Use to Avoid Overspending During the Holidays
1.Decide how much you can spend
Before you start buying everything in sight, decide in advance how much you are willing to (and can afford to) spend during the holidays. Break it down by person and type of purchase. For example, calculate how much of that amount you want/need to spend on gifts, holiday food, travel, or anything you just want.
Related: How to Save Money During the Holidays
2. Set some spending boundaries
It’s easy to let the purchases get out of control. As you’re shopping for one thing, you remember that you also want to get something else. You find a sale and can’t pass up a good price. Or people keep adding things to their wish lists.
For me, this is especially true with my kids. I keep finding things that they’d like (or clothes that they need) and keep adding things to my cart. But then the gifts don’t feel equal between my kids, so I have to go find something else for the one who doesn’t have as much. It quickly gets out of control if I’m not careful.
Situations like this require identifying some clear boundaries before you start shopping. Financial boundaries are basically rules or guidelines that help you more easily decide if you should buy something.
Setting a budget or determining how much you can spend in advance is one type of boundary. Here are a few more examples:
Making a list of what you need/want to buy and sticking to it (no extra items)
Turning your holiday meal into a potluck instead of making (and paying for) everything
Telling your family that you will not be participating in the high-priced Secret Santa
Deciding to have one holiday celebration that everyone is invited to instead of traveling to have different celebrations with all of the family groups
Limiting the number of gifts you give your children (one common recommendation is to buy each child one thing they can wear, one thing they can read, and one thing for fun)
You can set any boundaries or guidelines you want and that make sense for you and your family. The important thing is to decide on them in advance so that you’re not making decisions in the heat of the moment.
3. Question yourself
Most of us tend to shop rather mindlessly. We look at what’s in front of us and make an immediate decision about whether or not we want something. And most often, the answer is “yes!” Of COURSE, we want that item.
But then we get it home and realize that we spent too much. Maybe we’re in debt or don’t have enough to pay for the vacation we wanted. (Or if you’re like me, just looking at the total spending amount makes you want to crawl in a hole and never spend money ever again.)
The key to reducing this is to be more mindful when you’re about to purchase something. Ask yourself some questions to help you think about your purchase in the context of your larger financial situation and goals. For example:
Is this something I actually want? Did I want it before I saw it?
Do I really need this item? Or do I have something else that serves this purpose?
If I buy this, will it mean I have less money for something else I want?
Does this contribute to making my life better?
Is this in alignment with my goals and priorities?
Is this item just going to end up stuffed in a closet or piled in my basement to be taken to Goodwill along with all the other purchases I didn’t really want?
When I see the credit card bill, will I still be glad I bought this?
If all else fails, one of the most powerful things in your toolbox is time. Any time that you can give yourself to step away and think about the item increases the level of control you have over your desire.
Go ahead and add the item to your online shopping cart and walk away for a few hours or a few days if possible. Or tell yourself that you can come back to the brick and mortar store later if you still want the item once you get home.
Stepping away takes you out of the heat of the moment and allows you a chance to look at it more objectively (and ask yourself the above questions).
Additional Resources:
4. Avoid Temptations
This one is a bit harder, particularly at this time of year. But it can be done! Here are a few ideas:
Unsubscribe from store emails
Set up a separate email address for store emails and don’t check it unless you actually want/need to get something from that store
Take a social media break
Find fun activities to fill your time that don’t involve going shopping
Have your groceries delivered so that you can avoid in-store temptations
And please please please try to avoid the trap of Buy Now Pay Later programs. They are a temptation that can often lead to trouble.
Find Balance
Reducing costs during the holidays does not have to be all or nothing. You can enjoy the holidays and indulge yourself to some degree without the painful post-holiday credit card bills. But you will feel much better about it when you know that you are spending money on the things that are most important to you and cutting out some of the things that don’t contribute to your overall happiness and security.
Take some time to identify what it is that you really want out of this season, set some intentions, and make a plan for how you’ll stay on track.
Happy Holidays!
