Start Now to Avoid the Holiday Hangover This Year
The holiday season is a time of joy, celebration, and often, overspending. Many people indulge in impulsive purchases, expensive gifts, and lavish decorations that end up leaving them with a financial hangover that extends well into the new year. For couples, this can be a particularly challenging time, as conflicting spending habits and goals can lead to resentment and stress in their relationship. In this blog post, we will discuss tips and strategies for couples to navigate the holiday season and avoid a financial hangover.
One of the most important steps in avoiding a holiday hangover is setting goals and planning ahead. This includes creating a budget, setting a spending cap, and prioritizing the most important expenses. For couples, it is critical to communicate openly and work together to determine what is reasonable and affordable for both partners. This can help prevent overspending and reduce post-holiday stress.
During the holidays, it can be tempting to indulge in impulsive purchases and luxurious gifts. However, these decisions can quickly spiral out of control and result in excessive debt. This year on average people spent $1,000+ on debt during the holidays. To avoid this, it is important to practice discipline and self-control when it comes to spending. This includes avoiding unnecessary purchases, sticking to a budget, and setting limits for gifts and other expenses.
Large purchases, such as a new Christmas tree or expensive holiday decorations, can quickly throw off a budget and lead to overspending. To avoid this, it is important to plan for these purchases ahead of time and budget accordingly. This can include saving money throughout the year or finding ways to reduce the cost, such as shopping for deals or DIY decorations.
To recover from holiday spending and gain a better understanding of the value of saving instead of spending, some couples may choose to have a no-spending month. February is the shortest month and an ideal time to practice no or low spending. During this time, they avoid all non-essential expenses and focus on reducing debt and increasing savings. This can be a valuable exercise in financial discipline and help prevent post-holiday stress.
This year we splurged on a deeply discounted Christmas tree after the holidays. Now we’ve decided to increase our monthly Christmas savings by $50 to ensure we don’t overspend in the coming holidays. This could be a good savings plan for many to begin right now.
The holiday season can be a challenging time for couples managing their finances. However, with the right strategies and mindset, it is possible to avoid a holiday hangover and maintain financial stability throughout the year. By setting goals, planning, practicing discipline, considering a no-spending month, and saving now, everyone can enjoy the holidays without overspending or experiencing post-holiday stress.
Listen in to this week’s For Better AND Worth episode to see how we also find it hard to stay on track during the holidays. You are not alone!