It’s easy to get carried away during the holidays. Spending during this time of year is normalized and there is pressure to make it special at any cost. Looking out for these spending traps will help you avoid a post-holiday credit card hangover.
Buying for yourself while shopping for others
When you are already in the shopping mood and picking out gifts for others, it’s easy to slip a few things in the cart for yourself. In fact, nearly 60% of shoppers plan to spend on themselves during the holiday season. This isn’t necessarily a problem if those expenses are planned and accounted for in your budget, but you could also save yourself some cash by putting those items on your wishlist for others to get you. If there is anything from your wishlist that you don’t receive as a gift, give yourself permission to buy it after the holidays—it might be cheaper then anyway.
Getting sucked in by promotions & advertising
We all love a good deal, but we are also very vulnerable to sales and ads this time of year. With promotional emails flooding our inboxes, making an extra purchase or two is hard to resist. Reduce the temptation to make unplanned purchases by unsubscribing to retail emails. You can always sign up again after the holiday email rush is over. Alternatively, send these emails to a completely separate email address that you set up for this purpose and only check it for coupons and sales when you are planning to make a purchase from a specific store. Many people are also highly influenced to buy things based on social media. If this is a weak spot for you, consider taking a break from those sites during this season so you can spend your time and money on things that are most important to you.
Not shopping at the right time
Starting your shopping too late—or too early— can be a problem for your budget. As a last-minute shopper, you are more likely to buy or pay more for shipping if it means that you’ll receive your purchases in time. You can try to get ahead of this problem by starting your shopping early, but this can also lead to overspending. Some shoppers who complete their shopping lists early in the season will keep buying gifts up until the holidays because they are influenced by advertising or still feel the urge to shop. The key is to know what works best for you!
Forgetting about the extras
Gifts tend to be the main holiday expense that comes to mind but it’s not the only expense pulling at our purse strings. Many people travel for the holidays, give gratuities to the people who make their lives easier, and spend money on food whether that’s hosting dinners, attending potlucks, or even participating in a cookie exchange. Holiday decorations, holiday cards, and even wrapping paper can also eat into your budget. It’s fine to spend on these extras, but make sure that you’ve accounted for them in your holiday spending. On average, consumers spend about $230 on non-gift Christmas expenses annually which is enough to throw off a tight budget.
