How to Avoid Overspending During Holidays and Tet?

How to Avoid Overspending During Holidays and Tet?

Holidays and Tet are often times of "explosive" spending with shopping, gifts, and gatherings, easily causing budget overruns if not controlled. According to surveys, nearly 70% of Americans overspend during the holidays, and the situation is similar in Vietnam with inflation driving prices up. Fortunately, you can avoid this by planning ahead, hunting for deals, and tracking closely. This article will guide you on budgeting, shopping tricks for discounts, creating a separate fund, tracking on X Money, and preventing impulsive spending – helping you enjoy the holidays without worrying about "running out of money."

Budgeting for the Holiday Season

Budgeting is the first step to avoiding overspending, helping you control your cash flow effectively. Start by:

• Determining the total budget: Allocate about 1% of your annual income for the holidays, adjusting according to circumstances (e.g., if your income is 15 million VND/month, allocate 3-5 million for Tet).

• Creating a detailed list: Categorize into gifts, food and drinks, decorations, travel; estimate costs and prioritize essentials to avoid "better safe than sorry."

• Reserving for contingencies: Set aside 10-20% for unexpected expenses such as spontaneous gatherings or price increases.

• Tip: Plan early (1-2 months in advance) to avoid rushed purchases, saving 20-30% of costs.

With careful planning, you will spend purposefully and reduce financial stress.

Shopping Tricks for Discounts

Holiday shopping can easily become "carefree" without a strategy, but deal-hunting tricks will help you save significantly. Here's how to do it:

• Hunt for discount codes and deals: Join deal-hunting groups on Facebook to stay updated on promotions; turn on notifications on Shopee, Lazada to hunt for golden hour vouchers (0h, 12h, 18h).

• Compare prices carefully: Check prices before and during the holidays to avoid "fake discounts" (raising prices then reducing them); prioritize buying early to take advantage of year-end offers.

• Buy just enough and reuse old items: Make a list of essentials, reuse decorations from the previous year, or buy discounted items to reduce costs by 20-50%.

• Tip: Use payment apps like Momo to get cashback, and buy in groups for additional discounts.

Applying these tricks, you can reduce shopping costs by up to 30-40% while still having everything you need.

Creating a Separate Fund for Events

Creating a separate fund (or sinking fund) helps you save gradually for the holidays without affecting your monthly budget. How to set it up:

• Define your goal: Estimate total spending (e.g., 5 million for Tet) and break it down monthly (save 1 million/month for 5 months).

• Create a separate account: Open a savings fund with a high interest rate, automatically deduct 10-20% of your monthly income.

• Track progress: Set specific goals such as 3-6 months of basic expenses, and adjust if needed.

• Tip: Use the fund for major events like Tet, avoid using the emergency fund to avoid being caught off guard.

A separate fund turns holiday spending into a smart investment, helping you be prepared without borrowing.

Track and Adjust Directly on X Money with the Budget Tracking Feature

To effectively track and adjust your holiday budget, use X Money – an AI-powered expense tracking app, free on the App Store and Google Play. X Money helps you control in real-time with outstanding features:

• Automatic tracking: Record spending via Voice AI (say the expense), Chat AI (text), or scan invoices, accurately categorizing 98% into the holiday category.

• Create and track budgets: Set spending limits for the holidays, receive warnings when approaching the limit (e.g., "You have spent 80% of your gift fund").

• Quick adjustments: Create weekly/monthly reports with charts, suggesting optimizations such as cutting down on food to compensate for gifts.

• Integrated reminders: Set payment reminders or daily budget checks, supporting multiple wallets for separate funds.

X Money saves 90% of your time, helping you adjust in time and avoid budget overruns.

Prevent Impulsive Spending

Impulsive spending is the biggest "enemy" during the holidays, often stemming from emotions and promotions. To prevent it:

• Create a spending plan: Differentiate between needs and wants, prioritize the essential list to avoid impulse purchases.

• Apply the 48-hour rule: Wait 48 hours before buying to let emotions cool down, helping you make wise decisions.

• Only carry cash: Use cash instead of cards to clearly feel "money dwindling," reducing excessive spending.

• Tip: Set financial goals (such as saving for a vacation) to restrain yourself, and track via the app to receive warnings.

These methods help reduce impulsive spending by up to 50%, keeping your budget safe.

Avoiding budget overruns during the Tet holiday is entirely possible if you plan carefully, hunt for deals, and track closely. Start by creating a separate fund and downloading X Money for automatic tracking – a tool to help you enjoy the holidays without financial worries. Apply now for a complete and economical holiday. Good luck!