Now that Thanksgiving is behind us, many are beginning to address the holiday gift-giving list. Retail spaces have already adorned their aisles with Christmas decorations and artfully arranged their products to encourage seasonal spending. Despite the joy associated with giving, it’s not uncommon to exit the holiday season with a bloated budget.
Whether you tend to overdo it, or can’t resist temptation, it is not unusual for the holiday shopping fever to be followed by a pang of guilt and regret over sudden expenditure. Here are seven commonplace holiday spending gaffes you can be on the lookout for while preparing for the season.
1. SHOPPING WITHOUT A STRATEGY
Entering a shop without a clear list or financial blueprint increases the likelihood of spending more than intended. Unplanned purchases can be impelled by a dazzling display, a deep-rooted love for the product or the daunting plethora of options.
Before a shopping excursion, construct a list of individuals you aim to treat, set gift ideas for each and determine an individual budget. This will help maintain control over what you have to buy and avoid exceeding financial limitations.
2. FLIRTING WITH YOUR CREDIT LIMIT
It is a cardinal mistake to rely extensively on your credit card for holiday shopping, particularly when expenditure overshadows savings or bank balance. Despite the seeming convenience of paying off later, it is a perilous trap to fall into.
Rather than charging into the holiday shopping season recklessly, allocate a portion of your funds as a shopping budget. Keeping cash on hand helps curb the impulse to use plastic money. Trust me, when handling cash, the temptation to overspend is markedly less.
3. NEGLECTING PRICE COMPARISONS
It may seem tedious to browse multiple stores or online retailers to compare gift prices, but it can save you a surprising amount. Items may be priced differently across different platforms and stores, some even offering exclusive deals and coupons. Online price comparison websites like Googleshopping facilitates price comparisons from the comfort of your home.
4. SWEPT UP IN EVERY DEAL
Sales and deals featured in stores and ads are designed to attract buyers. However, some deals may demand more spending to qualify for benefits like free gifts or additional merchandise. Always scrutinize deal conditions and ensure they represent actual savings.
5. OVER-EXTENDING YOUR GIFTEE LIST
The festive mood makes it easy to add more people to your gift list, sometimes including people we don’t often interact with. Though generous gift-giving sounds tempting, it’s heavy on the pocket. Make sure your list consists of only those you genuinely wish to or expect to exchange gifts with.
6. OVERSPENDING TO KEEP UP APPEARANCES
Splurging to impress friends and relatives is not only irrational but also financially destructive. With social media platforms like Instagram flaunting extravagant gifting trends, it’s easy to feel pressurized. Remember to focus on thoughtful gifts within your budget, rather than expensive ones.
7. LAST-MINUTE SHOPPING
Christmas is an annual event, making last-minute purchases inexcusable. You not only lose out the opportunity to compare prices, but the rushed purchase might exceed your budget.
While gifts are a key element of the holiday season, they shouldn’t lead you to start the new year financially burdened. Avoid these seven holiday spending mistakes, and remember – it’s the thought behind the gift that truly matters. Have you noticed these mistakes in your shopping habits? What strategies have helped you stay on track?
