How chasing sales can actually blow your budget

How chasing sales can actually blow your budgetHow chasing sales can actually blow your budgetThe holidays are almost upon us As I mentioned in thepast, weve been inundated with ads for weeks or months by now. There are hundreds of sales and special offers enticing us to buy. Do you ever find yourself spending mora than planned even after you take advantage of the many sales opportunities? According to arecent surveyfromElevatesCenter for the New Middle Class, youre not alone.Almost 40% of American consumers reported overspending on the holidays in 2016. Plus, debt counseling companies see a25% increasein customers looking for support in January and February. But it doesnt have to be this way. We can learn from our mistakes, and make new decisions moving forward.What the data says about shopping and chasing sales39% of consumers spend more than planned during the holidaysThose who went over budget spend about 15% more than planned86% of shoppers use some kind of savings tactic, like shopping sales or using couponsConsumers were 45% more likely to go over budget if they chased salesPeople who use coupons were 22% more likely to overspendCouponers who didnt set a budget were 76% more likely to overspend than those who did budgetUsing a credit or debt card made people 38% more likely to overspend than those who used cash58% of holiday spending goes towards gifts, while the rest accounts for travel, food, celebrations, etc.Those who didnt plan ahead spend 125% () more than those who created and stuck to a planWhat you can do to avoid overspending at the holidaysCreate a budgetI wrote about thisbefore, but its so key to create a spending budget at the holidays. Make sure youre also accounting for any travel (or celebrating) that you will have to do. This will give you a framework to stay within. Keep your budget number with you and write down the amount every time you buy a gift. That way, youll always be aware of how much youve spent and how much spending you have left.Set spending limitsOnce youve created your budget, set a cap on how much you can spend per person or per gift. Keep track of your spending as you go, and stick to your limits. If you know you dont want to spend more than $20 per person (except for very special people), dont even look at items that cost more than that. It can be tempting to spend more, but remind yourself of your parameters and keep yourself in line.Plan for unexpected costsThings happen. If your car breaks down or something else goes wrong around the holidays, it only adds stress to you and your budget. It helps to plan for unterstellung types of expenses. Make it a long-term goal to build up youremergency savingsaccount. This fund will protect you when unexpected costs arise. How does that help you around the holidays? It wont force you to pull money from your gift budget, so you wont have to deviate from your plansAvoid savings trapsHave you ever gone to the store looking for one item, but then theres a sale if you buy two or more? So then you end up buying more (and therefore spending more) than you intended? Me too Thats called a savings trap. It seems like youre saving money but youre actually spending more than you would have otherwise. Once you have your gift list and/or budget set, dont deviate, even if there is a sale.Use cashIf you tend to overspend even when you have a budget, consider using cash only. Once you set a spending limit for yourself, take that amount out of your bank account. Carry that with you when doing your holiday shopping, and once its gone, youre done Consider leaving your credit cards at home so you arent tempted to keep shopping.Thisarticlefirst appeared onMaggieGermano.com.