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Question: Every year at this time, I overextend my wallet. I always tell myself I will not overspend but I inevitably do. I have a large family to purchase gifts for and I always want to get that "just right gift" for everyone—even at too large an expense. I would love ideas to better prep for future Christmas and holiday shopping and not overspend. Thank you.
Answer: This is a question that many of us can relate to as we wrap up the holiday season! Luckily, the new year is the best time to start planning for next year’s gift purchases—by starting to save now!
First, make a list of everyone you plan on buying gifts for. Next, establish a maximum amount you are able to spend. (Notice I said “able to” and not “would like to”. This should be based on your income, minus your current and expected expenses.) Doing this will set your spending limit. After your limit is set, figure out how much you’ll have to save from each paycheck to match that limit.
Once you know the amount you’ll need to save from each paycheck, put it aside each month! Definitely take advantage of direct deposit if your employer offers it so that the amount goes directly into your bank account—reducing the temptation to spend it.
You’ll want to be sure that you’re monitoring your spending as you begin shopping, so that you don’t go over budget. Record the amount you spend and pay attention as you approach your limit.
There are plenty of Christmas shopping apps that can help you monitor your spending, as well as specific bank accounts. Auburn Savings has a Christmas Club account that was created specifically for saving up for holiday shopping!
With a little planning ahead and discipline to deposit into your bank account each month, you can take the stress out of the holiday buying season and avoid overspending.
Part of the fabric of Lewiston-Auburn since 1887, Auburn Savings provides financial products and services for individuals, families, businesses and the shared community we call home. Visit us at auburnsavings.com
