3 tips to spending right during the holidays

ABS-CBN News

Posted at Dec 06 2014 05:27 PM | Updated as of Dec 07 2014 01:27 AM

MANILA, Philippines - What is it about the holiday season that makes you want to whip out your credit card and shop until you drop?

Many people tend to overspend during the Christmas season, whether it's buying gifts for family and friends or splurging on a "prize" for yourself.

On a recent episode of ANC's On The Money, Metro Magazine fashion editor Eldz Mejia said he noticed many of his friends and family spend a lot on clothes, bags and shoes to show off during holiday parties and reunions.

Another item he noticed that many women tend to splurge on are hair treatments at fancy salons.

Another overindulgence is buying luxury goods.

"Maybe for bags, you can buy one luxury bag every year or a good pair of shoes. Maybe the classic ones, like a good suit for men or little black dress for women," Mejia said.

But how do you know if you're spending too much?

"Too much is when you already have 'utang', debt. When you maximize your credit card limits or when you borrow from your friends and family," Mejia said.

Tips

Mejia offered three tips on how to keep from spending too much during the holidays.

1. Pay your credit card bills first, settle your debt.
2. Don't borrow. Buy things with money you actually have.
3. Don't buy things you don't need.

"People think during the holidays, it's time to give yourself a prize since you've done a great job. But for me, I budget for the whole year. Like buying one pair of shoes per quarter or a luxury bag in the next quarter, but not in the same month," Mejia said.

In the end, he said it's all about the discipline in handling one's money.

When it comes to gift-giving, Mejia said there's no need to buy extravagant gifts to impress people.

"It's a cliche but it's the thought that counts. It's not the extravagance or price of the gift, it's giving what they need or making sure you've given them what you think they need," he said.