Keep Holiday Spending Under Control
Take little steps to keep yourself from getting carried away and heading into the New Year with a debt hangover.

You've seen the footage on the news. You've been in the middle of it. You've stood in the vexing lines. You've circled for the elusive parking spots. Holiday shopping can be downright frenzied—and impulsive.
You don't necessarily need to go to the mall to feel the pressure and the urges—a half-hour with your laptop or tablet can put you in the same frame of mind.
How do you keep your spending under control, whether in a brick-and-mortar store or at home? Here are some tips.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Make a plan.Most people do their holiday shopping without one. Set a dollar limit that you can spend per week – and try to spend less than that. As you plan your financial life (and check on your plan every few days), you may feel a little less stressed this holiday season. In fact, you might want to make two budgets – one for shopping, the other for entertaining.
Recognize the hidden costs. Holiday shopping isn't just a matter of price tags. When you don't visit brick-and-mortar retailers, you can avoid eating at the food court or coffee shop and spending gas money. Carpooling to the mall or taking public transit can help you save some cash.
On the other hand, when you shop online, there's always shipping to consider. It can make what is seemingly a bargain less so. Free or discounted shipping feels like you're getting a gift. Online retailers can also be very finicky about returns. Miss a deadline to return something to an online retailer (who hasn't?) and you may end up paying sizable return fees or just getting stuck with what you purchased.
Counteract those holiday expenses elsewhere in your budget. Maybe you spent a couple hundred more than you anticipated on that flat-screen TV. To offset your extra spending, pinpoint some areas where you can save elsewhere in your budget. Could you find cheaper auto insurance? Could you eat at home more this month? Could you drive less or cancel that gym membership or premium cable subscription?
If you do go overboard, strategize to attack the excess debt. You may want to pay off the smallest debt first, then the next smallest and so forth onto the largest. Or you may want to take the debt-stacking approach, whereby you pay down the debt with the highest interest rate first, then the one with the second highest interest rate, and so on.
With the latter method, you can potentially realize greater savings on interest charges. The advantage of the one strategy is the psychological high of quickly paying off a debt; the downside is the lingering, larger interest charges that come with the larger debts.
If you aren't vigilant, the holiday season could leave you with a "debt hangover" or contribute to a severe debt load you may be burdened with. According to the Federal Reserve, the average indebted U.S. household suffered with $15,593 in credit-card debt in August. That was a 2.36% increase from a year before.
If you feel like indulging yourself, indulge sensibly. Some people do give themselves holiday gifts, and the same logic you apply to giving to others should hold for yourself—whether it is a meal, a motorcycle or a spa package, don't break the bank with it.
Lastly, think about setting aside some holiday money for 2017. If your finances allow, how about putting $100 or $200 aside for next season? Invested in interest-bearing accounts (or elsewhere), that sum could even grow larger.
Greg O'Donnell's mission over the course of three decades has been to guide people to pursue and maintain a healthy financial life plan that accomplishes their goals.
Investment advice offered through O'Donnell Financial Services, LLC, a registered investment advisor. Securities offered through Independent Financial Group, LLC member FINRA/SIPC. Advisory assets may be custodied at TD Ameritrade. Insurance offered by Gregory C. O'Donnell, California Insurance #0B87978. Mortgage services are provided through American Pacific Mortgage Corporation licensed through the California Bureau of Real Estate #01215943 NMLS #1850. Gregory C. O'Donnell licensed by the California Bureau of Real Estate #00971579, NMLS #298004, not all applicants will qualify, rates subject to change. Know before you owe. Insurance offered by Gregory C. O'Donnell, California Insurance #0B87978. O'Donnell Financial Group, Inc. and O'Donnell Financial Services, LLC are not affiliated with Independent Financial Group, TD Ameritrade or American Pacific Mortgage Corporation.
This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Greg O'Donnell is the CEO and founder of O'Donnell Financial Group (www.ODonnellFinancialGroup.com). His mission over the course of three decades has been to guide people to pursue and maintain a healthy financial life plan that accomplishes their goals.
-
The Surprising Truth About Loneliness and Longevity
We've all heard about the epidemic of loneliness that can shorten lives and make retirement miserable. But there's more to the story.
-
The Dollar Index Is Sliding. Is Your Portfolio Prepared?
The Dollar Index Is Sliding. Is Your Portfolio Prepared? The dollar's fall has been troubling because inflation appears to be constrained and the economy has been strong. Here's what it means for investors.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get It
Standard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College Grad
College grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.
-
Don’t Miss Alabama Tax-Free Weekend 2025
Tax Holiday Ready to save? Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can Benefit
Here's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.
-
Neglecting Car Maintenance Could Cost You More Than a Repair, Especially in the Summer
Worn, underinflated tires and other degraded car parts can fail in extreme heat, causing accidents. If your employer is ignoring needed repairs on company cars, there's something employees can do.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the Road
From student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 Years
Building wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
You're Divorced, But the Work Isn't Over: A Guide to Five Financial Tasks to Do ASAP
Once your divorce is settled, don't waste time. You've got to tie up some important loose ends or risk losing money and facing tax consequences.