Suze Orman Suggests Setting a Holiday Spending Plan To Prevent ‘Emotional and Rash Overspending’
Written by
Yaël Bizouati-Kennedy
Edited by
Daria Uhlig
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Personal finance expert and New York Times bestselling author Suze Orman said that with the holidays soon approaching, now is the time to make a spending plan to “avoid emotional and rash overspending.”
Orman argued in an Oct. 30 LinkedIn post that this simple decision could set you up for a “more financially secure 2024.”
“Right now is when you can talk yourself into not overspending on holiday gifts and travel,” she wrote.
Orman outlined a few steps to help consumers stick to this plan.
1. Don’t Spend What You Don’t Have
“I have zero patience for anyone who thinks love permits them to spend money on travel and gifts that will end up on a credit card charging 20%+ interest,” she wrote.
As she noted, gifts are a want, not a need.
“If you can’t afford to pay off a credit card in full, then that is money that shouldn’t be spent,” she added.
2. Just Say No
As Orman explained in her post, “the gifts you buy are not why you are loved.”
“You say yes to overspending from a fear of not letting down the people you love most. But do you really think they will be disappointed and judge you in a negative way if you don’t spend money on gifts?” she wrote.
3. Be creative
Think about other ways you can give, she noted. For instance, babysitting, or baking or taking on small craft projects.
4. Rethink What Being Generous Means
Orman argued that for a gift to be truly generous, it must be as generous to the giver as the recipient.
“When you are pondering a purchase, stop for a moment and ask yourself, ‘Is this generous to me? Or will it hurt me financially?'” she wrote.
Setting Your Holiday Budget
Despite the current economic landscape, a recent TransUnion study found that more than half of Americans plan to spend more than $500 this holiday shopping season — a notable jump from the 36% who planned to do so in 2022.
The caveat is that among those planning to spend more, the majority represent high-income households — those earning $100,000 or more (59%) and households with children (63%).
If you are struggling to make a spending plan, pump the brakes on your holiday spending and follow Orman’s advice, there are many tools available. For instance, ClearPoint Credit Counseling Solutions offers an online holiday budget planner that calculates a budget based on your annual income.
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