Take These Steps to Spend Less Money on the Holidays
The holiday season often causes even the most savvy spenders to overextend their budget. Gifts, parties, travel, food—it all adds up, especially on top of regular monthly bills. If you feel anxiety about your finances creeping up this time of year, take a deep breath: there are specific things you can do to prevent overspending, no matter where you’re starting from.
Track every dollar
First, start tracking your expenses down to every dollar. Download a budgeting app or use a spreadsheet . Just the act of having to enter and record where your money is going every day makes you more aware of bad habits. Analyze the latest data, looking for frequent small expenses on things that you likely won’t even remember or worry about in the next month.
Make a list of necessary and useful things
Next, make a list of holiday gifts and then categorize people into must-haves and nice-to-haves. There must be immediate family and very close friends to whom you feel obligated. “Nice people” are those you would like to receive gifts from, if possible. Be honest with yourself about priorities and expectations.
Set firm spending limits
For each person needed, set a firm spending limit on gifts, say a maximum of $50 or $75. By making the endpoint limits clear, you’ll be able to more easily say no to things in stores that fall outside the limits. For nice people, set even lower thresholds and only give gifts if you have extra money later.
Try the cache filling
The cash stuffing method, or “envelope system,” helps turn budgeting into a more intuitive, even “gamified” experience: You have different physical envelopes for different expense categories, and you stuff each envelope with a planned amount of money for one category (or period). payment). The key here is that you can only spend money on a specific category (say, groceries or gifts) from the envelope designated for it. Once the envelope is empty, it will be like that until the next paycheck arrives.
Cash stuffing works because it forces you to be more intentional (decide how much money will be put in each envelope) and more disciplined (you won’t be able to put more money in the envelope when it runs out).
Keep perspective
When you feel caught up or seduced by holiday commercialism, stop and take perspective. Make a list of the things that are most important to your well-being: family, friends, meaningful activities. No material possessions you can buy will ultimately bring more lasting joy than these pillars. Let the holiday season focus on value rather than money-sucking frills. Be smart with your spending while keeping in the spirit of the season.