Holiday overspending is a real killjoy, but it can be avoided. As you enter this holiday season, two interesting statistics come to mind. Last year, Americans spent more than ever during the holiday season – $964.4 billion, to be exact! Yet, America is at an all-time low on the World Happiness Report.
We’re highly unlikely to spend our way to happiness this holiday season. Speaking from my own experience, there are three main things that cause us to overspend during the holidays: not sticking to the plan, guilt, and deciding to “figure it out” later.
Stick to the plan
This may seem obvious, but having a plan (holiday budget) is vital. The real key is sticking to that plan. To help, we need to make sure it’s realistic. Having a really strict budget may end in frustration and disappointment.
However, we need to have honest conversations with ourselves and our loved ones. Maybe a Disney Christmas just isn’t in the cards. Maybe family gift-giving gets scaled back a little. Whatever limitations you have, give yourself some grace and understand that you’re not the only one trying to survive the holidays without going bankrupt.
Managing and avoiding guilt
Mom-guilt and Dad-guilt are a real thing in our household. We often catch ourselves trying to right the perceived wrongs of our own childhood — there was nothing wrong with how we grew up. We didn’t have big Christmases. But you know what? I remember very few gifts from Christmas growing up.
However, I do remember traditions like going to my aunt and uncle’s Christmas tree farm to cut down a tree, having Christmas parties with friends and family, and making homemade goodies to share. My wife loves carrying on a simple tradition of getting new pajamas each year.
I think it’s also dangerous to assume the outcomes of our giving. More stuff won’t make our children and family feel more loved. There’s always going to be some kid on Instagram showing off their new private jet. And let’s be honest, kids cling to the most random things. It’s pretty rare that our son reacts the way we expect.
We’ll “figure it out” later
The decision to “figure it out” later is the most dangerous holiday decision you can make. For me, this comes naturally and is compounded by my time in the military. At work, we’re constantly handed tasks or projects and told, “Make it happen!”
So, we do what we’re told and beg, borrow, and steal to accomplish the mission at all costs. If we’re really honest, we often end up creating two or more problems for each problem we fix using this mentality. We get hyper-focused on the current objective and neglect everything else.
If we approach the holidays the same way, our holiday budget can end up in a perpetual loop. We “figure it out” by pulling from other funds or, worse yet, swiping the credit card. That’s a “tomorrow problem.” It’s easy to do and often well-intentioned, but it can also turn that $100 gift into a $125 or more gift over time. If we’re not careful, we’ll be stuck in a cycle of paying off Christmas for the rest of the year — just in time to do it all over again next year.
Eventually, this leads to empty wallets, stress, and feelings of holiday regret. The holidays are meant to bring joy and happiness — not debt and regret. This year, focus on purpose and people. Create a plan and stick to it. Give the greatest gift of all: memories.
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