December 12, 2016

How to Avoid Overspending During the Holidays

Written By Jack Ryder
Last updated November 8, 2017

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Simple. Thrifty. Living.

It can be hard to keep your spending in line while you are shopping for the holidays, but it can be even worse looking at your credit card bill after the first of the year. When you are shopping for gifts during the holiday, set up a few ground rules for yourself to help you keep on budget to avoid overspending. Here are a few tips from us on how to keep your spending in check:

Making a list of gifts is not enough. Make sure you do your research. Find the stores that have your gifts at the best price. Set an overall budget and stick to it. There are a ton of financial services that will track your spending for you for free (, LearnVest, etc.), so you will always know exactly how much you are spending on gifts. Having a plan of attack and sticking to it is the best way to avoid overspending during the holidays.

Even if it is a gift you think someone will love, don’t buy it on the spot. Go home, do some comparison shopping, and make sure you are getting the best price for it. Giving yourself that time not only will land you a better price but will also give you time to think through the purchase and make sure it is the right gift.

Say you were going to buy your husband an iPad for $500. Then you see a deal on a 3D TV that is normally $2,000 but is on sale for $1,000. Yes, you are technically “saving” $1,000 on the purchase, but you are still overspending your budget for you husband by $500. While holiday deals can be very tempting, you need to keep the budget in mind otherwise you are going to overspend.

In the heat of the moment, it’s hard to avoid overspending. It may sound corny, but having personal mantra that you can repeat to yourself when you are about to overspend on gifts can really help pull yourself out of the situation. Say to yourself something like “Money can’t buy happiness” or “I can’t afford this” or “My planned gift list is enough” can reset your thinking and help you avoid overspending.

If you really want to go all out but are afraid of the consequences, you might want to look into off-setting your big spending plans. For instance, use a credit card that gives you the most cash back for your purchases. Many credit cards give up to 5% cash back around the holidays for online spending or shopping at big box stores, so take advantage of those perks. You can also look into supplementing your income with little side jobs, like baking cookies for your friend’s office party or picking up a mall job just for the season. You can also look at some of your old Christmas presents to see if there is anything you can sell, like old electronics that you don’t use anymore.

About the Author

Jack Ryder

Jack Ryder has been working as a reporter and writer in the personal finance space for many years. He enjoys breaking down complicated finance information into easy-to-read articles, so his readers can better navigate their financial lives. He is currently the Editor of the Credit Repair and Debt Relief categories, although enjoys writing about all things finance. Jack has had articles appear in publications from the Huffington Post to Business Insider. You can contact Jack at

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