Submitted by Lori Bushell LCPC, CSAT, CMAT
‘Tis the season of celebrations and gift giving, but it’s easy to get carried away and end up spending more than you bargain for. In the month of December, nearly 30 percent of total yearly sales occur for some retailers. According to a survey by Harris Poll, on behalf of SunTrust Bank, 40 percent of Americans feel pressured to overspend during the holidays and 53 percent of parents spend more than they can afford. When the calendar turns to January, many find themselves overstressed with the amount of money spent. So, before you make your way to the local retail stores and do online purchasing, let’s take a moment to better understand why so many fall into temptations of overspending.
Overspending behaviors can sometimes be linked to people’s need to escape or have a quick fix to relieve stress and anxiety, called “retail therapy.” Other people may overspend to simply impress their co-workers, peers, or family members. These consumers will base their self-worth on whether they can afford these items and can sometimes find themselves “keeping up with the Jones.” Either way, emotional spending will often lead to more debt and stress. Another common cause for overspending is the pressure to buy or spend money on sale items. Companies take great advantage of consumers looking for “a good deal.” Prices are slashed and specials advertised in attempts for businesses to make financial gains. Overspending can be a direct link of wanting to get the best deal, often spending more money than the consumer originally planned. Before heading out to your local mall this holiday season, let’s identify some simple steps to avoid overspending.
- Set a budget
Decide how much money you want to spend during the holiday season and take into consideration expenses including food, travel, and decorations. Separate your expenses into different categories and ask yourself these questions: how much do I plan to spend on each individual for gift giving? What will be the total cost of travel expenses? What special events will take place this holiday season and how much will they cost? What will be the total costs of all food preparations? What additional costs will be included in my holiday spending, including gift wrapping, decorations, and donations? Make any necessary changes and or sacrifices to match the total price to your budget plan. Sites like Consumercredit.com offer free spending planner worksheets to help consumers find ways to stay within a budget or trim their expenses around the holidays.
2. Track your gift giving and spend wisely
A simple piece of paper and pen can be used to write all purchase down to create mindful spending habits. It is all too easy to forget a purchase here and there, and over time, these forgotten expenses quickly add up. Use an envelope to keep all receipts to track your purchases and if it goes on sale after the holiday rush, you can sometimes be refunded the difference. It also pays to do your research and find the best deal on that particular item. Search online and compare prices among local retail stores and take advantage of sites such as fatwallet.com, retailmenot.com, and slickdeals.net to find the best deals, money saving coupons, and the best time to make those purchases.
3. Plan ahead
Even though the holidays are just around the corner, it’s never too late to create a separate holiday bank account for the 2019 holidays. Put aside small amounts each month and, over time, you will be financially ready for the next holiday season. Another great way to plan ahead is to shop all year around and buy gifts when you see them on sale or on clearance after major holidays. By planning ahead and working year round on holiday expenses, consumers are less likely to fall in the trap of compulsive buying.
4. Get creative with celebrations and gift giving
If you love to entertain during the holidays, but are not a fan of the dent it leaves in your pocket book, get creative with your parties. Host a potluck with friends and ask each person to bring their favorite holiday dish. Have a cookie or craft making party and exchange the items for gift giving. This creates a personal touch and can keep you within your budget.
These simple tips mentioned above can help keep you from overspending this holiday season. Remember, Mother Theresa said it best: “It’s not how much we give, but how much love we put into giving.”
If you or someone you know would like to reduce overall spending this holiday season help is available. Overspending does not need to contribute to current life stressors. By making a simple phone call, you could have a stress free holiday!
Lori Bushell is a licensed clinical professional counselor who specializes in all forms of addiction and treats an array of mental health needs including anxiety, mood disorders, co-dependency, self-esteem issues, and relationship issues. For more information, contact Lori Bushell Counseling, LLC at 309-319-9330 to schedule an appointment-2000 West Pioneer Parkway Suite 20, Peoria.