The holidays are approaching, and as always, there will be lots of happiness, festivities, and, of course, spending. With the festive mood, we tend to get carried away and end up spending more money than we had intended. This blog will discuss how to control our spending this holiday season. We’ll look at emotional spending, its causes, and how a sound budget can assist us in controlling it. Use this as a guide to help you enjoy the holidays without worrying about going over budget.

What is Emotional Spending?

Emotional spending occurs when we purchase items based on how we feel rather than what we need or can afford. We are often happier and more generous during the holidays, which is fantastic but it can also lead us to overspend. So, what’s the deal here? It all comes down to how much our feelings influence the way we choose to spend our money. We see an ideal gift for a loved one and want to buy it immediately, even if it is expensive. Perhaps there is a sale and, although we believe we are saving money, we wind up buying things we hadn’t intended to. We can still take pleasure in celebrating and purchasing gifts, just not at the expense of our budgets.

The Importance of Budgeting

Consider a budget as a financial plan for your spending. It makes it easier for you to see how much you can afford to spend on various items, such as vacations, parties, and gifts. Having a budget prevents you from making careless financial decisions, which is precisely what happens when we indulge in emotional spending.

You can still enjoy the holidays even if you’re on a tight budget. It allows you to spend without being concerned about going over budget. And the best part? You won’t be faced with large credit card bills or regrets after the holidays.

How to Set Up Your Holiday Budget

Begin by calculating how much you can manage to spend this holiday season. This covers everything, including decorations, special meals, and gifts. Once you know your spending limit, determine how much you wish to spend on each aspect.

Being realistic is essential. It’s easy to underestimate how much something will cost. Thus, allow yourself a small margin of error for each category. And never forget that sometimes the best gift isn’t the one that costs the most. A small, considerate gift can sometimes mean much more. Once you’ve set up a budget, stick to it. Keep track of your spending and make sure you’re not exceeding your budget.

Identifying Emotional Spending Triggers

Emotional spending triggers are situations or emotions that cause you to make impulsive purchases. While each person’s triggers may be different, during the holidays they usually involve things like the desire to please others, a festive mood, or even a different emotion like stress or sadness.

Take a moment to reflect when you are tempted to spend. Consider this question:

“Am I buying this because I need it?” This pause can assist you in making more deliberate spending decisions.

Smart Shopping Tips

First and foremost, keep a list. Make a list of everything you need to buy before you go shopping. This helps you avoid impulsive purchases and helps you maintain your focus. Compare prices as well. You should not assume that something is the best deal just because it is on sale. Take a moment to compare prices on the Internet or at various retailers’ shops.

Another strategy is to wait before making a purchase. If you see something you want but it’s not on your list, hold off on purchasing it. Give it some thought for a day or two. It’s possible that you’re not as interested in it as you first believed. 

Finally, keep an eye out for marketing ploys. During the holidays, stores are very good at getting us to buy more. To elicit an emotional response, they employ elements such as sales signs, festive music, and unique lighting. Pay attention to these strategies and stick to your spending plan and budget.

Maintaining Your Financial Goals

Maintaining your financial goals during the holiday season can be challenging, but it is essential for your long-term financial health. The secret is to remember your bigger financial picture. Remember that the holidays are only a small portion of the year, and going overboard with your spending can derail your long-term plans, such as debt repayment, house savings, or retirement fund savings.

Conclusion

Don’t be too hard on yourself if you do find that you are overspending and slipping. Everybody makes mistakes. What matters is that you recognise it and get back on track. Check your spending to see where you went over budget, then make adjustments to other areas of your spending to make up for it. Perhaps you should cut back on eating out temporarily or put off a major purchase you had planned.

If you have accrued multiple debts due to overspending or any life challenges, it doesn’t matter what the reason is, there’s hope for you. Your debt can be reduced by up to 80%, and interest will stop immediately. You can speak with one of our debt experts at EmpireOne Credit to get personalized advice. We offer a friendly and non-judgemental consultation, and we care about your financial health. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!