Brian Tracy shares three ways to stop overspending during the holidays: set an overall budget based on your income and savings goals, allocate specific amounts per person or occasion, and track every purchase with receipts and a spreadsheet.
Hello, I'm Brian Tracy and today I want to talk to you about how to not overspend during the holidays, which is a problem that almost everyone has. Money is hard to earn and easy to lose. Guard yours with care. Between all of the work events, social engagements and upcoming holidays, it's easy to spend more than you anticipated without a clear cut plan of action. This leads to financial stress and strain on you once the season is over and you have to pay the money back. To ensure that you don't spend outside of your limits and still have a great holiday season, here are the three things you can do to avoid overspending. First Set and Overall Budget Ask yourself how much can you reasonably afford to spend in this holiday season? Instead of thinking what is the absolute maximum amount you can spend, say how much can you afford to spend without stretching yourself too thin? The problem with the holidays is that people spend way more than they can reasonably afford and then are stuck in debt for months, maybe even years after the season has ended. The holidays aren't about showing your love or gratitude for someone by putting yourself in a tough financial situation. Take a look at your current finances, figure out the approximate cost of your monthly expenses and bills, and then determine how much money you want to save. Remember, it's recommended that you save 10% or more of your income. Then you can attribute whatever is left over to gifts, plus whatever you saved specifically for gifts previously. Once you've set your overall budget, the next thing you'll want to do is to set budgets for each individual person or even occasion on your list. Obviously, there will be people who you spend more on, such as your kids, parents or significant other. Once you've set a budget for those closest to you, then determine how much that you can spend on everyone else. Remember, the holidays aren't just about giving and receiving gifts, so don't feel obligated to get one for every single person you know. Just because you work with Joe or Cindy doesn't mean that you have to get them a gift for the holidays. If you do feel obligated to get gifts for your co workers, suggest doing some sort of gift exchange to your employer or give them homemade presents. It's the thought that counts. Finally, to ensure you do not overspend this holiday season, keep track of your spending. None of this budgeting will do you any good if you don't actually keep track of what you're spending to make sure that you're staying within your budget. It's easy to become impulsive during this time of the year and feel tempted to spend more than you budgeted for. If you think you have found the perfect gift, the key is to not get caught up in that trap and to only purchase items that fit into your budget. No matter what, Keep all of your receipts and enter them into a spreadsheet or mobile app with all of your set budgets to stay on top of your spending however you choose to do it. Just make sure that you always know exactly how much you've spent per person and overall so that you don't go over your budget. Great leaders know how to think effectively, make good decisions, and take purposeful action by developing good habits. Download my free report on the Power of Habit and learn how today. Now. I'd love to hear from you. So my question today is what can you do to not overspend during the holidays? Think it through in advance and then follow your plan. Leave a comment below and I'll be sure to follow up with you. Thanks for watching. And remember, if you want to change your future, take action and take action now. If you enjoyed this video and feel it was valuable in teaching you about how to not overspend during the holidays, subscribe to my channel. Like this video and share this video with your friends. Don't forget to click the button on the screen for a free gift. Thanks again for watching.
