The holidays are not a good time to overspend your budget

As the holiday season officially begins tomorrow, we’ll be met with the same typical voices we hear every year:

“The holidays are a time for family, togetherness, faith and gratitude.”

And…

“Spend, spend, spend. Your vacation can always be better if you spend a little more!’

In the most brilliant scenario, the marketing messages we see will combine both.

• “Your family will have a better Christmas if you buy this…”
• “Your children will feel more joy if you get them this…”
• “Your perfect Christmas morning is missing just one thing…”
• “Your joy will be complete if you buy this…”

It’s no wonder the holiday season is a consumer wonderland of last-minute shopping and rampant consumerism.

Here are some statistics for the holiday season:

1. Americans spend about $1,000 on Christmas each year.
2. 7 out of 10 Americans go over budget during the holidays.
3. 37% of those taking on holiday debt said it would take at least five months to pay it off.

Unfortunately, when the calendar turns to January, the negative effects of that spending start to show: higher-than-expected credit card statements, tighter finances than we imagined, increased stress and regret over the amount of money spent.

Why let a month of festivities undo a year’s worth of careful budgeting?

The pressure to spend comes from everywhere during the holidays.

But before the season begins, I invite you to consider a different approach this holiday season—one that respects your budget and values ​​experiences over excess.

The holidays are not the time to overspend your budget.

Why compromise a year’s worth of budget discipline for a festive month? Starting January in debt not only undoes a year’s worth of effort and sets you back financially, but it brings another thought into your mind that you will never overcome your financial woes.

Discard this message this year. Continue your growth and discipline. You don’t have to overspend to enjoy your vacation.

In fact, to help, here are seven practical strategies to help you stay on budget this holiday season:

1. Set a clear budget for all expenses

Start by deciding yours total vacation budget. Consider all aspects: gifts, travel, food and decorations. Don’t just think, “I’ll spend $x to mom and $x to my colleagues”. Consider every expense. Sometimes realizing that plane tickets home cost $400 this year requires you to change how much you plan to spend elsewhere.

2. Recognize retail tricks

Stores have the ability to make us spend more, especially during the holidays. Watch out for these tactics and remind yourself that you don’t have to give in to them. Your love for the season (and others) is not measured by what or how much you buy.

3. Self-Gift Challenge

Almost 50% of Americans consider buying themselves a gift during the holiday season.

It’s easy to get caught up in the self-indulgence trend, but ask yourself: Is this necessary? Especially when I am about to receive many gifts from others?

Cutting back on gifts for yourself can significantly reduce your spending.

4. Avoid convenience costs

While the holidays can be stressful, resist using convenience as an excuse to overspend. Planning ahead can save you from these small, but accumulated, expenses. Skip coffee or lunch when shopping.

5. Set expectations early

Contact your family and friends if you plan to change your gifting approach. Very few of your family members want you to be charged to buy them a gift. They want you to live a financially stable life…not receive something in a cardboard box.

Honesty helps set a precedent and keeps everyone on the same page.

6. Be smart about travel

Travel can be expensive during the holidays. So look for cost-effective options and remember that the joy of the season is in being together, not how much you spend to get there.

7. Track every expense

Keep a close eye on your spending. A simple notebook or budgeting app can help you stay within your limits. Every penny, every expense needs to be tracked—especially this time of year when last-minute purchases are so common.

This holiday season, let’s not fall for the myth that more spending equals more happiness.

And let’s work hard to end this year on a high, financially secure and satisfied, ready to welcome the new year with open arms and a balanced budget.