Mindful Holiday Spending

Many years ago, I used to buy really amazing (*cough* expensive *cough*) gifts for my family members at the expense of my own financial well-being. Translation? I charged everything to my credit cards.

And, to make matters worse, I would spend that whole next year paying those same credit cards back down to, you guessed it, do it all over again.

There’s a lot I can unpack with this— poor financial boundaries and absolutely no understanding on how credit cards actually work (can someone say “interest fees”). I was blindly swiping. The holiday spending high had hit and there was no coming down.

I was stuck in a habit, and I didn't have the tools to get myself out. I didn't even have the tools to be honest with myself about my spending habits around the holidays.

So as the holiday season fast approaches and you're being told to "buy early" and "get the deals now", it might be time to set up some boundaries for yourself around holiday spending. After all, the last thing you want to do is blindly swipe your money away— no spending hangovers here!

Here are some of my tips and questions that you can ask yourself along the way:

1) What did I do in years past that felt good or caused spending regret?

Talking about my spending regret, aka spending baggage, is easy. I have a lot of it. I carried that baggage throughout the whole year, and then some, just to dig myself deeper into the debt hole. It was suffocating and I had to start being accountable for my actions. On the other hand, what feels good to me is sticking to the list. Lists are clear. They’re safe lines to stay inside of and for this topic, I want to stay safe.

2) Do I have a budget for holiday spending?

Creating a budget will help you to be mindful and that is what this whole blog is about—bringing mindfulness into your holiday spending. I recommend writing down who you need to buy something for and what amount you want to spend on each person is. This will let you see if you are in alignment with your total budget and allow you to change it before you go out and start spending. If my total holiday spending budget is $500 and I go out with a list of people, but not individual budgets, I risk going over my total allotment. I could easily blow my whole $500 on the first three people on my list if I am not careful. It’s so good to map out every little detail!

3) Create a list and know exactly what you need.

You know the Target joke that you go in to buy one item that’s $20 but you end up buying $100 worth of additional items? Don’t do that. Plan ahead! Make a list and stick to it. Stay on course and you won’t end up with a payment hangover— kind of like a moral hangover, but for overspending. And if you have additional funds for “fun spending”, great! You can plan that into your Target run, too. Your list might look like this:
- Socks for Dad $20
- Toy for Niece $15
- Toy for Nephew $15
- Sweater for Mom $20

4) Will I be risking my own financial well-being by spending X amount?

Whatever your total budget ends up being, you need to ask yourself this very important question. No one is spending your money for you. You are in charge. So, what is the impact of the spending you intend on doing?

5) Can I put money aside out of each paycheck for my holiday budget?

Have you ever heard of a holiday savings account? There are a lot of variations— some people love this, and some people don’t. Personally, I am not a holiday savings account kind of person, but my grandma is! She puts $20 in it every week at the beginning of January so at the end of the year she has a nice little nugget saved for holiday spending. If you’re like me you actually start buying for people in January, instead of saving money. I have a little corner in my attic (please don’t tell my kids) where I store all the holiday gifts. It’s SO fun when it’s time to pull everything out because I tend to forget what I’ve gotten for each person! I do, however, still budget for doing it this way. I make my list and budget early in the year and as I collect items for people, I slowly cross them off my list. This way I am still sticking to my budget and not falling into old habits.

6) Can I get creative and make gifts instead of buying?

Every year I [bribe] my kids to help me in creating something for all their grandparents. This is great for us because there are a lot of them— between grandparents and great-grandparents, there are 12 total. And, hopefully you guessed it, I budget the crafting materials, too!

If you are the person who, like me, finds themselves stressed year after year around holiday spending, then I urge you to look at your habits, with holiday spending and everyday spending, and find a new path. These last few bullet points are what help me to stay on track, with all budgeting, and maybe they can help you, too!

- Would you pay full price for this item?

If you only want to buy the item when it’s marked down, can you really say you want or need it?

- Is it a want or a need?

Loaded question but it really will help you cut back on impulse items. Most of the time I make deals with myself— I’ll fill my virtual cart and leave it full or take a screen shot of the items I chose so I can come back in a few days if I am still feeling like I need those items. Or I might put an item in my shopping cart and look around the store for a while before deciding yes or no to that item. I have also told myself that I don’t need the item right now but if it’s still there next time I go to the store, it’s meant to be. I know this feels more like gambling, but it really reduces my impulse purchases and lets me reflect for a while before I buy the item that wasn’t in my budget.

- Getting things at a discount does mean you are saving money.

It’s true, we all love a discount but just because the eye capturing sales ad says the amazing item is 15% off, it doesn’t mean that you’re saving money. Because you’re not. You are still spending money— and more money than you planned to spend initially.

Mindful holiday spending starts and ends with you. You have to get your hands dirty and do the work. And, I get it, it’s stressful to open that door to see what you’re looking at, but once you do it’s so liberating and empowering. Happy budgeting!