Christmas is just around the corner and Black Friday will be here before we know it. According to a recent survey conducted by the National Retail Federation, consumers plan to spend an average of $875 on gifts, decorations, food, and other holiday items this year. The problem with these statistics is that many consumers rely on credit cards to cover their holiday purchases. In 2022, 37% of consumers accumulated holiday debt. With credit card interest rates on the rise, consumers may end up paying hundreds more in interest and fees. So, how do you avoid the temptation to overspend this season?
Learn to value the true meaning of the holidays
No matter what your religious views may be, no doubt the holidays have some spiritual importance to you. It is important to stay mindful of the significance of these celebrations. I am not a religious person, but Christmas is one of my favorite times of the year. I love the lights and joyous music, and whenever I go to the stores during the winter season, people just appear to be in a much better mood.
Aside from that, most of us get some extra days off work in November and December, so it is a great time to catch up with our loved ones and focus on things that are truly important. You do not have to exchange gifts with someone to show them that you care. Focusing on the reasons beyond the celebrations can shift your need to overspend.
Take a break from social media
Social media has its benefits, but it can also be very harmful to our sense of joy and contentment. Some people may find that they are spending extra during the holidays simply to “keep up with the Joneses”. Still, some may be afraid of “appearing” to be financially strained, so they make purchases they cannot afford so they can rack up “likes”. If this sounds like you, perhaps taking a break from social media BEFORE the holidays will help you avoid spending money for the wrong reasons.
Don’t be afraid to say “no” to extended family
Here’s the thing. Everyone doesn’t need a Christmas gift! Perhaps it’s just me, but I have never understood the purpose of buying other adults (with their own money) gifts. I have six siblings and neither of us has ever exchanged Christmas gifts, although we have been together during some holiday seasons. If you buy one person a gift, then you may feel obligated to buy another a gift, and that just goes on and on. So, sometimes it is just easier to reserve the gift exchanges for your children and immediate family only and say no to nieces, nephews, and cousins.
Make a budget and pay with cash
If you insist on spending money this holiday season, set aside a specific amount of cash to spend and withdraw it from your bank account. Credit and Debit cards make it easy to overspend, so avoid the temptation by leaving these at home.
Final Thoughts
The holidays should not be an excuse to spend money you don’t have. We are still living in tough economic times and it’s important to always stay mindful of the need to save. Holiday sales are meant to entice you into spending money, so don’t fall for the retailer tricks. While there may be deals available during the holiday season, make sure that you are buying things because you NEED to, not because they are on sale. Remember that material things are temporary, but “love” lasts a lifetime, and it doesn’t cost a thing!
Happy Holidays!
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