Most people tend to overspend during the holidays. It has become a habit for some and one that seems likely to continue.
Admit it, it can be especially tempting to spend wildly, for example, it is the first holiday season after you get your first real job or after you receive the bonus. If you have worked so hard the entire year, making a real salary, you might feel that you want to say thanks to those who have helped you while you struggled through work.
However, whether you're making your entry into the real world, an established working professional or supporting a family, you should make sure that you don't go over budget in the process.
That's why it is important to have a Christmas shopping guide to help you avoid common shopping mistakes and to prevent yourself from overspending this holiday season.
Come up with a budget
Before you start buying presents during the holiday season, remember some steps to take, which include making a list of which items you want or need to buy and how much you can specifically afford for gifts.
You should also be able to determine your spending budget beyond gifts. Think of the extras that many people forget to add to their budget computation. Think holiday cards, office parties, white elephant gifts, and travel expenses. If you are planning a Christmas party or get-together, you should add this to your list as well.
Once you add up all your projected costs, plus the estimated cost for gifts, then you'll have your Christmas spending budget.
Try not to overuse your credit card
One of the most common holiday shopping mistakes is to put everything on your credit card. If you don’t control your purchases, you can end up paying for your gifts for several months or even years, if you make this mistake.
Keep in mind that most people tend to overspend when they use credit cards compared to cash. They are more confident to purchase and are more prone to impulse buying when they go cashless. It's better to use your debit card or cash to purchase your holiday gifts. The key is to plan carefully and control your purchases. This is one gift that you should give yourself.
Don't buy to impress
When you have the money, it is tempting to go out and buy extravagant gifts for everyone on your list, whether they're your parents, a significant other, or a close friend. But remember not to go overboard.
Spend within your means and look for items that are useful and meaningful to the people you are planning to give them to. Remember, it’s the thought that counts!
Don't forget anyone
Another common holiday shopping mistake is forgetting to buy a gift for someone important. This is why it is essential to have a shopping list with you when you start buying gifts. For one, you do not want to leave out certain people when it comes to giving gifts.
When doing the list, write down all the important people you'd like to give gifts to and ideas of what to give for each. When set out to shop, whether online or at the stores, take your list with you and check it as you go. Tick off each person as you find the perfect gift, so you don't overbuy for one person and forget another.
Don't forget to shop around
Instead of stressing yourself out by heading to the mall and running from store to store trying to find the perfect gifts during the holiday season, try comparing online shopping sites first from the comforts of home.
Shopping online has become the standard for many people especially in this time of pandemic. Even if you decide that you'd still rather shop in stores, comparing deals and prices online can give you a clearer idea of how much an item should cost you once you decide to go to the mall to buy them physically.
Don't wait until the last minute
Waiting until the last minute to do your holiday shopping can cause you harm. As you rush to try to find a decent present for your family and friends, you may end up spending way too much on an item that feels less thoughtful because you have no other options.
Avoid this holiday shopping mistake by shopping ahead.
Remember the holidays in your year-round budget
One of the common financial mistakes that people can make is forgetting to spread the cost of holiday shopping over the entire year. Many do not really set aside money each month to cover the cost of the Christmas gifts and other expenses of the next holiday season.
Put the money into a holiday savings account or simply allot some money in your regular savings account. This allows you to purchase your holiday gifts without overspending or worrying about how much you have to spend on them.
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