How to Avoid Holiday Overspending

How to Avoid Holiday Overspending

♫ As the largest gift giving holiday of
the year, 30% of retail sales occur during the month of December, and consumers will spend 9x the amount of money retail shopping in December than they will any other month of the year. Now this might be great for retailers, but for consumers, it can be a bit difficult. Especially when the credit card statement
arrives in January. ♫ It seems that keeping holiday spending in check is an annual struggle. So I want to offer seven strategies to avoid overspending during the holiday season. Number one: set a budget, and do it early. Decide on the total amount that you would be willing to spend during the holiday season, and then divide that total amount into some of the most specific categories: gift giving, travel, food, decorations. Make adjustments as you need it, but never exceeding the amount you would feel comfortable spending. Of course, a budget is only as good as those
who stick to it, and so the second strategy is that you need to track your spending. Keep track of how much you’re giving in gifts, how much you’re spending on food, how much you’re traveling, and make sure that your actual expenses are in line with the amount you budgeted early on. A third strategy to avoid overspending during the holiday season is to limit self-gifting. According to statistics, somewhere between 60-75% of people who went out buying gifts for others, buy gifts for themselves as well. This, during a holiday season where you’re going to be receiving gifts from a lot of different people. So you don’t need to be buying gifts for yourself as well. Number four: be aware of retail tricks. Every store is going to work as hard as they can to get as much money out of you as they possibly can. Gift cards, loyalty points, loss leaders,
even the music they play, the way they design their store is all set up to get you to spend more. Keep your budget in mind, be aware of the
tricks they’re trying to play, and don’t fall for them. A fifth strategy to avoid overspending during the holiday season is to limit your convenience costs. The holidays throw our usual schedule up into upheaval. We’re running from one even to another. We’re scurrying about, which tends to lead to eating out more often, getting more coffee, or pretzels, or snacks, whatever it might
be. Be aware of this, and limit it. Bring some of your own meals. Try to avoid those convenience costs. They’re hidden, and we don’t always notice
them until they begin to pile up. A sixth way to avoid overspending during the holiday season is to limit your travel expenses, or to at least be smart with your travel expenses. Travel’s an important part of the holiday;
I think it’s fantastic and I think it’s great, but we can look for cheaper flights, easier
travel dates. We can pack lighter to avoid baggage fees. We can bring our own food. We can stay a less expensive hotels. So cut down on your travel costs during the season as well. Which leads us to the 7th and final strategy, which it to set expectations early. If you don’t have as much money to spend on gifts this year, make sure your family knows. If you’re not able to travel, or eat at some
of the expensive restaurants that you might have in the past, or your family usually does, just let them know, and tell them that you’re cutting back this year, and make sure those expectations are set early in the holiday season. With those strategies in mind, this can be
a holiday season that both you and your pocket book enjoy. ♫

22 thoughts on “How to Avoid Holiday Overspending

  1. Great tips as always, thank you Joshua! I love the little segment at the end of this video. I love living in a small house! ?

  2. I have a separate account for gifts- every payday I put a certain amount in, so when birthdays/weddings/Christmas etc come up I pull from that account. I make sure it’s enough that it accumulates into the holiday season.

    Also, call me a freak but I do the majority of my shopping in October. Most of my shopping is gift cards/donations in a person’s name and perhaps the odd bottle of alcohol, so it’s not like they go bad anyways

  3. I love this series Joshua, and i wanted to add an important point about buying unnecessary stuff too. sometimes we overbuy stuff when we go into a special occacion, for example when i wanted to get married, i over bought cloths that i KNEW i didnt need.. and now i didnt wear them a lot, it was just the buzz of the event that made me buy them. Another example could be with a newborn baby or any occasional event that we usually dont have experience about. Like my marriage experience, i was afraid that im gonna need things that i never needed before this phase of my life, so based on that i bought stuff that i didnt have a real idea about.

  4. Gifts come as experiences in our home now… Eating out, movies are all part of the gift and it's all family time. This year we have purchased a year pass for the Christchurch Gondola here in NZ. Our children love it there?

  5. This year I have bought my kids fewer things but much better quality. I'm actually proud of the things I bought as they are timeless pieces.

  6. I find that many articles sold in garage sales were Christmas gifts that were not liked or unwanted.  Maybe we should just shorten our gift-giving lists.

  7. This is the first year I have no gift related stress. I’m so thankful for the information you have given us all, thanks to your book and videos we have given away sold or thrifted about 40 garbage bags of stuff. I no longer use plastic bags and don’t even bring home receipts. Even the pull of going to the thrift store is gone. Thank you, be blessed!

  8. Travel tip: rent a large car/van with lots of seats, room for presents and with a decent sterio or bring a speaker. For kids it's really fun to ride in a big, bus line car that they normally don't ride in and for the adults it's nice to have extra room for everything and everyone. It becomes an event and road trips get a lot easier this way. Normally it will also turn out cheaper than flights.

  9. The entire economy runs on spending. Most people will not earn their bonus or even salary or jobs if not for these holidays or festive spending. It’s what u can afford . Those who can .. should . Otherwise the companies will close down n massive unemployment. U shouldn’t be irresponsible n silly .. but it is okay to celebrate.

  10. Hey there! This came along perfectly. I have a little girl of 4. I have done plenty of de cluttering this year. Kitchen, clothes, stuff and toys. This year my little girl is only getting 2 presents. We celebrate Christmas and the Holy Saints. She has also asked for very specific items and that way she gets only what she really wants. And not have toys that she really doesn't care for.


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