Practical Tips to Control Your Spending This Christmas

mariadrg2021
2 days ago
2 min read

The holiday season is for enjoying, sharing, and creating wonderful memories… but it can also become a time of excessive spending if you don't plan well. Here's a simple and practical guide to help you keep your finances under control without losing the magic of the holidays.

1. Set your Christmas Budget

Set a total amount for gifts, meals, entertainment, and travel. Divide it by category to avoid overspending in any one area.

Example:

Gifts: $300
Lunch and dinner: $200
Decorations and other items: $100

Having a clear boundary helps you make better decisions.

2. Make a List of Expenses

Write down exactly what you need to buy and for whom. A list keeps you focused and prevents unnecessary purchases just because you see "irresistible offers".

3. Take Advantage of Offers Strategically

Shop early and focus on genuine discounts (Black Friday, Cyber Monday, or special sales). Compare prices online and in physical stores before making a decision.

4. Use Cash or Controlled Cards

If you're going to use a credit card, set a limit and stick to it. Paying in cash allows you to see exactly how much you're spending and prevents you from going into debt without realizing it.

5. Avoid high-interest loans

Deferred payments may seem convenient, but they often generate high interest rates that quickly increase your debt. Use them only if absolutely necessary.

6. Look for Economic Alternatives

Handmade gifts, shared experiences, or family activities can mean more than an expensive product. You can also opt for homemade meals to reduce expenses.

7. Conduct a Final Review

Before the year ends, review your expenses. If you went over budget, adjust where you can. This will allow you to start January with greater financial peace of mind.

How to Avoid the Impulse to Buy Everything

Before you buy, ask yourself: Do I need it or is it just an impulse?
Prioritize the essentials: gifts, food, and decorations.
Respect your spending limit so you don't go into debt for momentary whims.

The Common Mistake: “I’ll pay by card and then I’ll see.”

You accrue interest: if you don't pay the full amount by closing, the debt grows rapidly. False sense of liquidity: it seems like you can spend more than you can actually afford. It affects your cash flow: it limits your money for essential needs or savings.

The right strategy: Only use your credit card to buy what you can pay off in the next billing cycle. If you need to split payments, look for interest-free options and plan carefully.