1. Plan Ahead
The easiest way to prevent overspending is to make a shopping list and check it twice. Knowing what you plan to buy can help prevent impulse purchases; it also gives you the opportunity to comparison shop before you commit to a store or a price. Plus, keeping the number of forgotten wish list items to a minimum will help you save on gas and time.
2. Create a Separate Bank Account
Does the word ‘budget’ give you hives? You’re not alone. According to neuroscientist Dr. Andrew Newburg, words with negative or restrictive connotations such as diet, budget, or quota can cause us to act in ways that are ultimately counterproductive such as overeating or overspending. One method to prevent budget anxiety during the holidays is to create a separate bank account just for that purpose. Make sure all holiday purchases are made using funds from this account, whether it be with cash, check, or debit card. When the account runs dry, it’s time to stop buying.
3. Buy Online
Make sure you’re getting the best possible deal by shopping online. Not only can the internet help you comparison shop, but many brick and mortar stores have online deals that beat any in-store price. And, as a growing number of retailers decide to offer affordable one- and two-day shipping options, you no longer have to wait several weeks for purchases to arrive.
4. Track Your Spending
Whether you prefer to track your spending on paper, in a computer spreadsheet, or through a phone app, retaining an itemized record of your purchases can help you keep finances top of mind. If you maintain multiple accounts, tracking your spending can help you decide which account you want to draw from for upcoming purchases. If you catch yourself blowing through your holiday funds, sitting down to analyze your receipts can help you re-evaluate your shopping list.
5. Use Cash
When it comes to mindful spending, cash really is king. With credit and debit cards, it can be easy to lose track of your spending, since purchases are just a swipe away. Buying with cash, however, means counting out bills and handing them to the cashier—a more tangible process. Similarly, your spending is limited to the amount of cash in your wallet, rather than a seemingly bottomless well of credit. You also avoid racking up a revolving balance on your card, which can be costly.
6. Sale Shop
While you should never buy something just because it’s on sale, it never hurts to check out the clearance aisle for specific items on your shopping list. Still looking for that perfect dinnerware set? Second-hand and antique shops can also offer great finds at low prices. Many of these retailers offer a greater variety than your typical big box store.
7. Get Creative
Not all presents and decorations have to be purchased. Opting for DIY or even natural decorations such as pinecones and holly can help you save during the holidays. Homemade gifts can be as complex as a hand-knitted sweater or as simple as a personal coupon book. Just remember to make sure you aren’t spending too much on materials.
8. Spread Out Your Purchases
Spreading your holiday purchases throughout the year might be less festive, but it has several major benefits. Not only does spreading out your holiday shopping allow you to take advantage of seasonal sales and post-holiday discounts, but staggering your spending gives you more time to save up, especially for those all-important big-ticket items.
Sara McKinney
saractag@gmail.com
As Cowen Tax Advisory Group’s Digital Content Marketing Specialist, Sara provides in-house copywriting and manages the company’s electronic records system, email marketing, and blog.
