Avoid These 10 Money Mistakes During Christmas

The Christmas season has always been the season of gift-giving. Some of us could be preparing a list of the people to give gifts to.

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But it’s important to stay within the budget. Even if we are feeling generous, we should still be responsible so that we will not welcome the new year with empty pockets.

Be Financially Savvy

For some OFWs, Christmas is the season to give gifts to their loved ones. This means saving a little amount each month. The savings will then be used to purchase gifts come November or December.

But remember that it is also easy to get caught up in the season of giving that we end up spending all our money. Don’t let this happen to you. Here are some mistakes to avoid:

Not setting a budget

You saved up for the whole year. And you were able to save a substantial. And yet, you will end up using your other savings to finance Christmas spending.

Impulse buying

You might be tempted to buy a gift just because it’s Christmas. Or you’ll choose some items from the discount bin because these are discounted. If you don’t watch what you buy, you might use up all your budget.

Obligation to give gifts to everyone

You might feel pressured to give gifts to everyone you know just because you are an OFW. You could be cajoled into spending more because those around you know that you earn more than them. If you follow this thinking, you will blow through your savings quickly.

Borrow money for Christmas spending

Some of us who will come home for the holidays feel the need to borrow money to have a grand Christmas celebration. Remember that this is a short-sighted way to celebrate. Even if you have a secure salary once you return abroad, you will not be able to save at all until you have paid your loans first.

Defer payment of other obligations

You might plan to defer your other loans to have more money for Christmas. But this is irresponsible because you might have to pay interest if you did not settle your obligations on time.

Spoil yourself

You might think that you did not have a lot of material things growing up, so you make up for it now. Although you deserve a reward for your hard work, it does not mean that you will spend beyond your budget. Why not try to save first? And once you have achieved your goals, you can enjoy rewards later on.

Buy expensive items to feel superior

Some of us do not want to be labeled as cheap by buying inexpensive gifts. To make up for this feeling, we choose the most expensive item to save face. When we feel this way, we will also appear shallow. And we will overspend on our budget.

Buy the first item we see

In our haste, we sometimes fail to compare prices. We might miss out on a great price if we don’t know where to look. Also, just because the item is marked down doesn’t mean that it is the cheapest among the other items in the store.

Buying in bulk

You might think that you will save a lot if you buy in bulk. But when you do this, you might end up with extra items that have no intended recipient.

Not preparing a list

You could end up buying too many items if you do not plan the pieces you will buy. You could be buying something extra that will just go to waste because you don’t know who to give it to.

Be smart about your money. And remember that Christmas is all about the birth of our Savior.