Avoiding Holiday Overspending Year-Round

holiday overspending

The holidays tend to be a time filled with friends, family, and food. But for many, there’s another side to this otherwise joyous season: financial anxiety. After all, activities like traveling and gift giving cost money. It’s all too easy to get swept up in the pressures of holiday spending—especially when it feels like everyone else in the world is doing the same.

But the holidays are far from the only time it’s difficult to keep spending in check. The truth is, consumers face year-round pressure to spend money, whether in an attempt to “keep up” with others or because unavoidable expenses arise out of the blue.

The fact that so many consumers in the U.S. are living beyond their means illustrates this point perfectly. The average U.S. household with debt carries $16,883 on their credit cards, a trend that’s unlikely to change anytime soon because the cost of living is rising faster than income. Thus, people find themselves swiping their credit cards for a variety of purchases—essentials and non-essentials alike.

But here’s the good news: The same guidelines that help people avoid holiday overspending specifically can help people manage their money at any time.

Advice for Avoiding Holiday Overspending—Anytime

Uncontrolled spending is always a slippery slope because it can contribute to debt problems lasting months or even years.

Here are a few financial tips designed with the holidays in mind but applicable throughout the year:

  • Create a Budget: Whether you’re buying gifts or going grocery shopping, it’s important to create a list ahead of time so you can budget accordingly.
  • Avoid Extra Purchases: It’s all too easy to tack on extra purchases on top of those on your list, but avoiding this behavior will help you keep expenditures reasonable.
  • Buy at Strategic Times: Planning ahead will help you buy at strategic times, like when standard shipping is free or cheap.
  • Value Experiences over Expenditures: Consider how you can spend time with loved ones and get the most out of life without spending a chunk of change to do so. Time is often more meaningful than money.
  • Avoid the Temptation of Ads: If you’re online, you’ll likely be bombarded with ads for everything under the sun. Avoid the trap of buying on impulse because of marketing.
  • Steer Clear of Store Credit Cards: Even if the deal at the register seems like a boon, the high-interest rates make store credit cards risky. Applying also affects your credit score.

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The same things that cause consumers to dip into the red around holiday time can be problematic throughout the year. So, it only makes sense some of the same solutions are effective.

Avoiding Emotional Spending Triggers

Have you ever caught yourself engaging in emotional spending, around the holidays or otherwise? Investopedia defines this phenomenon as buying “something you don’t need and, in some cases, don’t even really want, as a result of feeling stressed out, bored, under-appreciated, incompetent, unhappy or any number of other emotions.”

Holiday spending is often motivated by making purchases for others or upholding social obligations. But throughout the rest of the year, consumers are vulnerable to other motivations for spending—namely psychological. It’s important to recognize triggers and avoid them to stay out of debt and meet your financial goals.

Avoiding holiday overspending is actually important year-round, both because there are holidays during every season and because managing your money is a marathon, not a sprint.