In the spirit of giving, it’s easy to get carried away with buying things for your loved ones.
You want to show your family and friends how much they mean to you by finding that perfect gift. Slowly, you start to lose track of your budget and suddenly find yourself in debt once January rolls around.
Since no one wants to start the new year in debt, we’ve put together some very doable tips that will stop you from going overboard and get your budget back on track if you do end up overspending.
Spending Tips
Make a List
Try to make your list as detailed as possible. Write down everyone you are planning to give a gift to, what you are planning on giving them and how much you are willing to spend on each person. Don’t forget to include people you’ll be giving holiday tips to, such as your mailman and doorman.
Pay Cash
A surefire way to not overspend is to purchase all your gifts with cash. First, figure out what your budget is and then take exactly that amount out the bank. Once the money is gone, you’re done shopping. No ifs, ands or buts.
Look, But Don’t Touch and Take Breaks
Researchers from UCLA and the University of Wisconsin-Madison found that holding an item, even if it’s just an ordinary item, increased people’s desire to buy it and made them willing to pay even 10% more for it.
Along with this, take breaks in between purchases, so you don’t fall into what’s known as the shopping momentum effect—aka when you go to a store to buy only one thing and you end up with a basket of things.
Taking breaks makes it less likely for you to make impulsive purchases.Cyber Monday
Score deals from your favorite retailers on Cyber Monday, which takes place the following Monday after Black Friday. CyberMonday.com offers discounts throughout the year, and on the actual day the site will have extra discounts and hourly specials. Also, Amazon is well known for their Cyber Monday deals.
Unsubscribe from Email Alerts
Even before you step foot inside the mall, avoid the temptation to spend by unsubscribing from all email notifications. While it may be fun to see upcoming promotions and deals, consumers who receive email notifications actually spend 83% more. It’s best to unsubscribe during the holiday season and wait to join again once the holidays are over.
DIY Gifts
Pinterest is full of ideas for DIY gifts and there are a ton of YouTube tutorials, too. DIY gifts are great because you can personalize them and make something you can’t buy at a store. Your co-workers and neighbors will love this peppermint hot chocolate mix kit.
More Tips
- Don’t self-gift. You will be getting gifts too, so there isn’t a reason to shop for yourself. After all, the holidays are about giving, not receiving.
- Take advantage of stores that offer free gift wrapping. You can use the money you save on gifts.
Post-Holiday Recovery
Once you’ve assessed the damage done to your finances, you may find that you will need to cut back in certain areas and make a few adjustments for the first few months after the holidays. If you want to recover as quickly as possible, try our suggestions.
Plan Meals Ahead and Start Couponing
As much as possible, avoid eating out and plan your meals a week in advance. You’ve already indulged during the holidays, so focus on simple meals that won’t cost very much to make. Also, be on the lookout for store flyers and use coupons whenever you can.
Put the Credit Cards Away
If you weren’t able to go by the cash only rule and happened to use your credit cards, from now on only use cash or your debit card to buy things. Be truthful with yourself and only buy things you can truly afford.
Sell What You Don’t Need
You most likely will end up with gifts that you don’t need or want, so use sites like eBay or Craigslist to take these items off your hands and earn some cash in return. Make sure to check first if you can return the items, so you can use the store credit or exchange it for something you want.
Holiday shopping doesn’t have to be stressful and it doesn’t have to put a strain on your finances. You can have a very merry Christmas whether or not you found the perfect gift for everyone on your list. Cherish spending time with your family this Christmas, and focus on the present, instead of the presents.
(Feature Photo via We Heart It)