Brian Tracy shares three steps to avoid holiday overspending: set an overall budget with 10% of income set aside, allocate per-person budgets for close family first, and track every purchase with receipts or a spreadsheet.
The holidays are when you should think about your current blessings and the reasons you are truly grateful. Hello, I'm Brian Tracy. With the holiday season quickly approaching, I wanted to give you some tips on how to avoid overspending during this time of the year so that you can stay on track and to reach your financial goals. Between all of the work events, social engagements, and upcoming holidays, it's easy to spend more than you anticipated if you don't have a clear cut plan of action, and this can cause a lot of stress and strain on you financially once the season is over. Here are three things you can do before you make any purchases to ensure that you don't spend outside of your limits and still have a great holiday season. The first thing you should do is to set an overall budget for yourself. Ask yourself how much can you reasonably afford to spend? Not what is the absolute maximum amount you can spend, but how much can you afford to spend without stretching yourself thin? The problem with the holidays is that people spend way more than they can reasonably afford and then are stuck in debt for several 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. So take a look at your current finances. Figure out the approximate cost of your monthly expenses and bills, then determine how much money you want to save. Remember, it's recommended that you save 10% of your income. Then you can attribute whatever is left over to gifts plus what 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 on your list. Obviously, there will be some people who you spend more on, such as your kids, parents or significant other. Once you set a budget for those closest to you, then determine how how much 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 kind of gift exchange to your employer or give them home homemade presents. It's the thought that counts. The final thing you'll need to do to ensure that you don't overspend is to 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 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 found the perfect gift, the key is to not get caught 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 with all of your set budgets. There are plenty of mobile apps that you can use to stay on top of your spending, however you choose to do it. Just make sure that you always know exactly how much you spent per person and overall so you don't go over budget. Before we wrap up, I'd like to leave you with a thought to share with your friends and followers. Here it is. The holidays are when you should think about your current blessings and the reasons you are truly grateful. Now I'd love to hear from you. So my question today is what other tips or strategies do you use to ensure you don't overspend during the holidays? 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 how to budget for the holidays, subscribe to my channel and share this video with your friends or anyone else who might benefit from this information. For more resources on how to improve your finances, Visit my website, briantracy.com.
