Budgeting for the Holidays

We are closing in on Christmas, and I know for me, it feels like I’m spending a lot of money. It’s easy to spend more than you planned when buying gifts. For this week's post, I thought I’d do a quick list of holiday budgeting tips.

Create separate budgets for non-gift expenses

While gifts seem to account for the majority of our holiday spending, it’s essential to consider the costs of travel, dining out, or hosting. A good idea for budgeting for the holidays is to separate the categories. Set your price limit for gifts, but also account for the cost of food, gas, plane tickets, and hotel rooms. When you don’t lump the areas all together, it’s easier to see where you can cut back spending.

Find creative ways to lessen the financial burden

If you’re hosting for the holidays, consider hosting a potluck-style meal where everyone brings a dish. This alleviates some of the cost of food and labor being on one person. Shop for gifts at second-hand stores or make handmade gifts. It’s the sentiment behind a gift that matters, not the price tag.

Try doing a cash-only budget

Withdraw a certain amount of cash for gifts or eating out. When that money runs out, it’s easier to stop spending than swiping a card. The physical loss of that money is a more impactful reminder of how much you’re spending than the distant lowering of your bank account.

If you’ve already gone beyond your budget, don’t worry

Next year, try setting aside money throughout the year for the holidays. Just like we save up for trips and special purchases, slowly save up for next year’s festivities.

Figuring out how much money to spend on the holidays without breaking the bank is stressful. Being mindful of your budgeting can help alleviate that pressure immensely.

Comment your budgeting tips below. I’d love to read them.