Hi. My name is LaTrice and I am a recovering shopaholic. I have been in recovery since I finished Dave Ramsey’s Financial Peace program almost four years ago. And I struggle the most with overspending and staying accountable financially during the holidays. I make my list, I check it twice then I get overwhelmed. Shopping for people I rarely see or talk to often stresses me out, so I head to the stores in search of the perfect, fitting gift and suddenly I see everything I have been needing. And everything my husband and kids need. And catch this, it’s on SALE!!! I love a bargain these days. So, I forget about my list and I buy a pair of jeans that actually fit me, oh and a new purse, too, soaps and candles for my home, the perfect outfits for holiday pictures…. And just like that—BOOM—my budget is out of whack and I never even bought one gift for the people on my list.
Then you add in the white elephant gift exchanges. Holiday Parties. Christmas Cards (I hope I can mail them out before New Years). Cyber Monday sales. One day only specials. Yes, these wonderful things have a way of throwing my budget out of wack. And I don’t like it. I usually run my household budget on a tight leash. I have been guilty of calling my husband and asking, “Sweetie, what did you buy for $4.68 at Publix?” But then comes the holiday season, stress and commercialism collide and my budget goes out the door. But no more!
Strategies to Avoid Overspending during the Holidays
1. Start Planning Early
Don’t let the holidays sneak up on you. Life is busy and sometimes downright chaotic, but Christmas happens at the same time every year and for the most part the traditions remain the same year after year. If you know you exchange gifts with all your 1st, 2nd, and 3rd cousins, why not look for little meaningful gifts throughout the year (non-perishable of course). This will help reduce the stress of fighting crowds for hot ticket items and waiting 40 minutes to find a park at the mall. Anything you can do early, just do it. You will thank yourself later.
2. Make a Budget and Stick to It
Get your Christmas list written down as soon as possible and set a spending limit for each person/item. Don’t forget to add the cost of dinners and parties, as those often aren’t accounted for. Once you have a reasonable budget you could set the money aside in a separate Christmas spending account and only spend from that account. Some banks have Christmas Club accounts where you can save money each month and receive the account balance right before the holidays for shopping. Check your local credit union or even start a money-market account to fund your holiday expenses. However you decide to fund your holiday shopping, the most important thing is to STICK to your budget.
3. Ask Yourself Why
I love Christmas! I love the season, the beautiful trees, the spirit of generosity, the food and parties. I LOVE IT!!! Christmas really is the most wonderful time of the year. But I HATE commercialism. I HATE guilt. I HATE overspending. These things have unfortunately reared their heads on more than one occasion and momentarily stolen my joy. When this happens it helps to ask yourself why:
Why do you feel like this?
Why are you stressed out about finding the ‘perfect’ gift?
Why are you spending so much money?
Why do you have to participate in every gift exchange and Secret Santa group?
The answers to the these questions will help you identify your motivation for gift giving. If the answers align with the intention to genuinely bless someone with no return glory on your behalf and the purchase fits in your budget, great. If the answers reveal that you are giving out of compulsion or pressure or because you feel it would make you more loved, then you should probably reconsider the purchase. A beautiful card or even a phone call can bless someone without breaking the bank.
4. Purchase From the Heart (and plans) Not From Obligation (and impulse)
Oh no, I forgot to get Aunt Suzy a gift. And I can’t buy Charlie a gift and not buy his cousin a gift as well. Have you ever found yourself in this type of situation?. Obligatory purchasing. I remember when I was a child, we saw extended family and distant friends on the holidays but we never expected to get a gift from everyone who walked in the door. It was totally okay to see my aunt, uncle and their whole family and not get a gift from them. We had fun eating, laughing, catching up and playing games and that was enough. Remember memories and quality time > obligatory gifting. If you feel you must give to more people than your budget reasonably allows, you could opt to purchase a few gender neutral small gifts ($5 gift cards, ornaments, baked goods) to have readily available just in case your co-worker or great-uncle Phil gives you a gift unexpectedly.
5. Be Creative
Some of us love crafting and some of us are Pinterest flunkies, but all of us likely have a shred of creativity deep down in our core. Some of the best gifts I have given have been ones that I made myself. It is not about the cost, it is about the thought behind the gift. If you know your friend loves Bath and Body Works scrubs, why not try to make her one yourself. There are all types of do-it-yourself guides to gifts and some of them are less than 5 steps. You can do it! And even if it is a fail, I bet your friend will still love you and you all will make memories laughing about “that one time you tried to make my gift.”
I hope that some of these tips are helpful to you. No one wants to start out the new year in debt or in a financial red zone, so start now with prevention by making a few small changes to avoid overspending. May you enjoy this holiday and remember that Jesus is the reason for the season.
What helps you avoid overspending during the holidays?