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How Not to Overspend this Holiday Season

Written by Arbitrage2024-12-03 00:00:00

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The holiday season is a time of joy, togetherness, and gift-giving, but it can also become a season of financial stress if you're not careful. Between shopping, hosting, and traveling, expenses can quickly add up, leaving you with a financial hangover in the new year. Here are some tips to keep your holiday spending under control while still enjoying the season.

Set a holiday budget: Before making any purchases, determine how much you can afford to spend this season without dipping into savings or going into debt. Allocate portions of your budget for gifts, travel, decorations, and any other expenses. After creating your budget, keep tabs on your holiday expenses to make sure you stay within your budget. Use apps or a simple spreadsheet to monitor how much you've spent. Seeing the numbers in real-time can help curb unnecessary purchases.

Make a shopping list: As you are setting your budget, write down exactly who you need to buy for and what you plan to get them. Having a specific list prevents impulse purchases and ensures you don’t accidentally buy duplicate gifts.

Shop early and strategically: Procrastination can often lead to overspending. Start shopping early to take advantage of sales and discounts. Compare prices online and in-store to find the best deals. Some stores will offer great bargains, but don't buy items just because they're discounted; stick to your list! Planning your purchases well in advance avoids the premium prices of last-minute shopping.

Use cashback and reward points: Many credit cards and shopping apps offer cashback or reward points. Save these rewards and use the benefits to offset your holiday expenses. Just make sure to pay off the balance in full to avoid interest charges.

Embrace DIY gifts: Handmade gifts can be meaningful and budget-friendly. Baking cookies, creating photo albums, or crafting personalized ornaments can be inexpensive yet cherished alternatives to store-bought presents. Sometimes, the best gifts aren't material. Hosting a movie night, driving around looking at Christmas lights, or decorating cookies together can create memories that last longer than any store-bought item.


Overspending during the holidays can cast a shadow on an otherwise joyful season. By planning ahead, being mindful of your spending, and prioritizing meaningful experiences, you can celebrate without financial regret. Remember: the true spirit of the season isn't found in extravagant gifts but in the love and connections you share with those around you.

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