How to Avoid Overspending this Holiday

8 Guilt-free Tools for Managing Your Money (and Spending)

Someone asked me this week how I manage expenses during the holiday season. “How do you keep your spending under control”? I honestly had to stop a minute and think. Not because I don’t know what I do, but because my family doesn’t actually exchange Christmas presents. It’s true. We stopped about 10 years ago. Let me tell you, that decision made a HUGE impact in a positive way. Here are a few of the ways it has been positive.

• More ease with family-time — no gift comparison
• A happier budget — no overspending or budget crashing
• More joy in preparing and sharing a meal — without added stress of gift shopping, wrapping and toting around.

There are so many reasons why this works for my family. But that doesn’t answer the question. How DO you stay on track where there are so many things to buy?? Today, I’ll share a few of my favorite tricks that work during the holidays, vacations or any time. I’m giving you a mix of practical and mindset tools, because I know that true success starts in the brain.

Know your Budget. At the top of any list I give you about managing spending is this. Whether or not you budget throughout the year, it is super important to know your spending limit for Christmas or vacation. Everything feels more relaxed during these times and it can be so easy to just go with the flow. So, stay clear on your budget and monitor your spending after each shopping session whether it’s online or in person.

Make a List Before you Shop. Going shopping without the vaguest idea of what you want to purchase often puts you in a bad place. You can end up purchasing more than you intended, spending too much on someone, or even mindless shopping for things you don’t need or want to give. I recommend that you have a few ideas for each person you are shopping for that day before you start. That way you can look for just those items and stop the mindless browsing.

Eat a Meal Before you Shop. Now you may be laughing and saying that I’m crazy, but stick with me here. I know for me that if I go into any store when I’m hungry, I can’t focus and I get sidetracked thinking about what I’m going to eat. On top of that, I often get headaches, get irritable and rush through trying to just get done. There is no good coming out of that situation. I recommend that you eat a healthy meal or snack before shopping so that you can stay on track and on budget.

Do some Deep Breathing. One of the ways that I stay on plan is to stay grounded. One of my absolute favorite ways to ground myself is to do a few rounds of deep breathing. Try this before you leave your car or logon to that website. Sit with your feet firmly on the floor, close your eyes and breathe in for a count of four, hold it for a count of four and exhale for a count of four. Now repeat that two more times. Don’t you just feel grounded, focused and better? That oxygen is important for brain function, so get it flowing! Bonus points if you use this when you run across crazy shoppers, screaming kids and cranky store clerks.

Consider a Christmas Club. You may think that Christmas clubs are outdated, but is saving money really ever outdated?? I don’t think so! While they used to be more prevalent than they are today, you can still find them in some banks and credit unions. This is an easy way to set aside money each month toward Christmas. Christmas clubs are especially designed to close out mid-October so that you have your money in plenty of time for shopping. Even if you don’t find a Christmas club, I recommend that you start setting aside money every month for Christmas or vacation spending. Especially if you have small children or a large family/friends list to buy for. Most of these types of accounts either let you have the money deducted from your paycheck by your employer (a split deposit) or you can set up an automatic transfer from your main checking to the special savings. Either way, you start out the Christmas or vacation season ahead of the game!

Look for 0% interest. While I don’t recommend that you rack up credit card debt or extra monthly payments during the holidays, it can be a good option if you need an extra few months to pay off those bills. My credit card company offered a six-month 0% interest offer starting with December. So, that gives me through May to pay off anything I charge. Caution here. Know your limits. Don’t go way over budget using something like this if you know you aren’t the type of person to be disciplined and pay it off.

Tune into What You Really Want. Often during the Holiday or vacation season we are rushing around taking care of so many things that we forget to take care of ourselves and see what our inner guide is telling us to do. So, I encourage you to really slow down and check in with yourself. What do you WANT to spend on Christmas gifts or vacation? How do you want the season to go? Where do you want your bank balance to be after the dust settles? I recommend asking yourself these questions with a pen and paper in hand. Really look at what you write and THEN start your list making, budgeting and shopping. When you come at it from a place of true desire, you will be surprised how much easier it is.

Get Super Grateful. As with anything, being grateful will create magic. If you are grateful for the money you do have and the people you love that you get to share the season with, you will find that clarity comes. Your money supports you and allows you to share gifts with those you love. There is something polarizing about gratitude that really helps you focus on what you truly want and let go of the rest. So, before any shopping spree, make sure you take a moment and say thank you.

There you have it. Eight simple tools you can use to stay on track with your spending. Try one or all of them out and let me know what you think in the comments below.

Sherry Parks is a Money Mindset Coach who helps women escape feeling stuck and trapped by their finances, so that they find more joy and wealth for their lives. Check out her 5 Steps to a Better Money Story workbook here. Here’s what people are saying about the workbook. “I am amazed how much insight I got after completing the workbook, I [became] aware of so much!” — Nicole E. “Your workbook is great; I already feel calmer and more in control of my relationship with money!” — Nancy R.

To connect with Sherry, join her women-only Facebook group Lives in Balance.