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Writer's pictureJacob Curtis

How to Prevent Overspending During the Holidays: Practical Steps to Keep Finances on Track

Updated: Nov 20

As the holiday season approaches, it’s natural to feel the pressure to spend more—whether it’s for personal gifts, special promotions, or client appreciation. However, without a solid plan, holiday spending can quickly spiral out of control, affecting both your business and personal finances. As Luke 14:28 wisely asks, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” Taking time to set realistic boundaries and strategies is essential to keeping holiday finances balanced.

Below, we’ve outlined practical steps to help prevent overspending this holiday season while maintaining a steady cash flow and financial health.




1. Set a Realistic Budget for Holiday Expenses

One of the best ways to control holiday spending is to set a budget in advance. A clear budget not only sets a cap on your spending but also allows you to allocate funds specifically to each expense category. For example, if you allocate $2,500 for holiday expenses, you could earmark $500 for client gifts, $1,200 for holiday promotions, and $800 for personal and family needs. This clear division helps prevent overextending in any area.


2. Monitor Cash Flow Weekly

Keeping tabs on your cash flow becomes even more important during the holiday season. Reviewing cash flow on a weekly basis allows you to identify any potential shortfalls early and adjust accordingly. If a particular week’s expenses are higher due to a holiday event, you can reduce spending in the following week to balance out the difference. Regular monitoring prevents surprises and helps you make informed adjustments as needed.


3. Use Separate Accounts for Holiday Funds

To avoid overspending, consider setting up a dedicated account specifically for holiday expenses. By setting aside a fixed amount in a separate account, you’re less likely to dip into your primary business funds. For example, if you allocate $2,500 for holiday costs, transferring this amount into a holiday-specific account creates a boundary that helps curb overspending.


4. Avoid Impulsive Business Purchases

Impulse buying is one of the biggest threats to staying within budget. It’s easy to get excited by limited-time offers or seasonal discounts, but remember that even small unplanned purchases can add up. Take a 24-hour pause before making any unexpected purchases, especially if they weren’t budgeted for. This cooling-off period helps you determine if the item truly adds value.


5. Limit Spending on Personal and Business Gifts

Gift-giving is a wonderful tradition, but it’s easy to go overboard. Setting clear limits on both client and personal gifts can help control costs. For instance, you might decide to allocate $500 for client gifts and $200 for personal gifts. Sticking to this budget allows you to give thoughtful, meaningful gifts without stretching your finances.


6. Plan Seasonal Promotions Carefully

Holiday promotions can drive revenue, but they can also increase costs if not planned properly. Establish a specific budget for seasonal promotions, and closely track the return on investment (ROI) of each campaign. For instance, if you budget $1,000 for a holiday marketing campaign, monitor whether the revenue generated justifies the investment. This approach will help you decide which promotions are worth running and which might need adjusting.


7. Reduce Inventory Overstock

It’s tempting to overstock holiday-specific items, but excess inventory can lead to unnecessary expenses. Forecasting demand accurately can prevent over-purchasing. For example, if your monthly average is 100 units, resist the urge to stock 300 units based on the holiday rush alone. Keeping inventory in check ensures you don’t tie up cash in products that may not sell as anticipated.


8. Take Advantage of Tax-Deductible Expenses

Holiday expenses, when used strategically, can provide tax benefits. Tracking deductible business expenses helps reduce your overall tax burden, making it an effective way to spend during the holiday season. For example, if you need new software or supplies, making these purchases before year-end can provide valuable deductions.


9. Hold a Financial Planning Session Post-Holiday

A post-holiday financial review can be invaluable. This allows you to assess this season’s spending and make adjustments for the next year. For example, if your budget was off by $500, you’ll be better equipped to budget more accurately for the following season, keeping your finances in line with your overall goals.


10. Manage Credit Card Usage Wisely

While credit cards can be convenient, they also carry the risk of high-interest charges. Limiting credit card usage to only budgeted expenses—and paying off the balance in full—can help you avoid costly interest. For example, if you budget $1,000 for holiday marketing, make sure it’s a planned expense that won’t lead to extra fees.


11. Plan Holiday Bonuses Strategically

If you plan to give holiday bonuses, ensure they fit within your budget. Avoid dipping into operational funds for these bonuses, as it can strain your business. Let’s say your business can support $3,000 in total bonuses—by communicating this budget upfront, you can show appreciation without financial strain.



Keeping holiday spending in check can be challenging, but it’s absolutely achievable with a clear plan in place. By following these practical steps, you’ll be better positioned to navigate the holiday season without sacrificing your financial health.



“If you have any questions or need personalized help, don’t hesitate to reach out. Schedule a call with Jacob by going to https://www.jacobcurtiscpa.com/5-strategies-calendar. We're here to help you piece together financial freedom.”



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