Finances can be a significant source of stress during the holiday season. Between the feeling that you must purchase gifts for loved ones and the increased spending that comes with parties and eating out, the holidays can leave you feeling as if money is flying out of your checking account.
The bottom line is that a lot of people spend more money than they have available during this time of year leading to a financial burden that can carry well into the new year. Here are a few tips to help avoid overspending and avoid the toll on your mental health that overspending brings:
1. Plan Early
If you are a gift giver and your list doesn’t change very much, start shopping much earlier and spread out the money you are spending to avoid a large hit all at one time. If you start early enough, you might catch some great deals to help you save money in the long run.
If you know that you’ll have a work party or if there are any white elephant games that you might participate in, grab a couple of generic gifts under $20 throughout the year to have available when the time comes.
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2. Pull Names
People with large families often get sucked into the trap of purchasing gifts for a lot of people which can cause serious problems with finances this time of year. If you have a large group of adults, pulling names can save everyone from overspending.
This is also a good time to set a precedent with the children in the family. They can have their own name pulling amongst themselves. Really get them into the experience of picking a gift for the person they pulled to teach a lesson on gift-giving.
3. Budget, Budget, Budget
It is not uncommon for people to shop for gifts without thinking through how much they can truly afford to spend. If you go out shopping with no limit in mind, you are certain to overspend leading to a lot of anxiety and uneasiness once you crunch the numbers.
Take some time before you start shopping and figure out how much you want to spend per person and then determine if that total is compatible with what you have available.
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4. Meal Prepping
During this busy time of year, you might find yourself eating out more which can be very expensive and lead to weight gain if you aren’t careful. The best strategy for this is to ensure that you have food at home that is going to fit with your busy holiday season. Having light, on-the-go options can prevent you from going through that drive-through.
Taking time to evaluate your financial situation prior to the holiday season and developing a plan is the best way to avoid carrying brand new financial stress into the new year. You’ll be glad you did!
Dr. Nicole Washington is a board-certified psychiatrist, speaker, author and host of The C-Suite Confidant, a biweekly podcast covering topics pertinent to mental wellness for the high performer. She enjoys discussing and providing education on all things mental wellness in hopes of decreasing the stigma associated with mental health issues.
