How To Set A Holiday Budget And Stick To It
For many, the holidays are the most wonderful time of the year. But for some, it's the most dreaded because of the added expenses that come with gift-giving. The holiday season is always a challenge, regardless of how wealthy you are, but it's grown considerably more so due to increasing inflation. Everything is much more expensive than it used to be, and many people are being forced to scale back their gift buying as a result.
In other words, if you feel more stress than joy during the holiday season because of the financial pressure, you're not alone. Luckily, there are plenty of easy ways to set a holiday budget and, more importantly, stick to it too. Here are a few tips to ensure you enjoy all the holiday festivities without overspending and can finally relax at the end of it all.
Make a plan for your holiday spending
Create a plan for holiday spending, but make sure you account for all your expenses. Putting aside money for holiday gifts is a given, but this time of year also means spending additional funds on decorations, food, and travel, which can add up quickly. NerdWallet recommends making categories for holiday spending.
This way, you can decide how much you're willing or able to spend on certain things, like gifts, and set a hard limit. If you plan in advance for holiday spending, you can avoid surprises. If you scramble every year to buy last-minute gifts for coworkers or neighbors, then set aside a day or two to bake cookies to give them instead.
Save up for the holiday season
It's always a good idea to start saving as early as possible, in anticipation of the added expenses of the holidays, too. The sooner you start putting money away, the more you can spread out your expenses over a longer period instead of incurring all the financial costs at once. Even if it's just a few bucks a month, it all adds up and could take the burden off you later.
There are plenty of simple ways to save money on everyday things, and you could even make an annual goal to save for the holiday season at the start of the year. Also, put your smartphone to work to help you save. Apps like Mint and Goodbudget give you a full picture of your financial situation in one place and can help you save for the holidays and other areas of your life.
Shop wisely for holiday gifts
Making a plan for holiday spending will help you shop smarter for holiday gifts rather than panic-buying at the last minute and potentially spending more in the process. Take advantage of sales and coupons wherever possible, and always resist impulse buying even if you feel like you're under pressure. Black Friday sales often start way ahead of Thanksgiving weekend, and you don't have to shop in crowded stores to save big bucks.
Online shopping can offer even bigger savings, while also giving you the opportunity to curate your list. According to Forbes, Cyber Monday 2022 was the biggest shopping day on record, with American shoppers spending a whopping $11.3 billion. Start your holiday gift shopping early so you have plenty of time to find bargains. The sooner you start shopping, the more likely you'll find good deals on holiday gifts. It'll also make the overall process less intimidating.
Keep holiday expectations in check to manage holiday spending
Keeping your holiday expectations in check can help you manage your budget while keeping the temptation to overspend at bay at the same time. While it might be tempting to try and create the "perfect" holiday for your loved ones, this is a futile gesture and entirely unnecessary in the long run. The most important part of any holiday season is spending quality time with the people you love.
Not only that, but it could land you in unnecessary debt if you feel pressured to buy things you can't afford just to impress people who would never expect you to do something reckless on their behalf in the first place. Overspending and stressing yourself out will take away the enjoyment of the season, and it will also leave you with lasting worries as you struggle to recoup the money you spent.
Focus on enjoying the holidays more
It's important to remember that the holidays are all about spending quality time with those you love rather than showering them with expensive gifts. Financial stress over the holiday season can make us forget the real reason for gift-giving in the first place. If you're concerned about whether something is good enough, consider how you'd feel knowing a loved one stressed out or put themselves in debt to get you a present.
When it comes to the holiday season, it really is the thought that counts. Lifestyle guru and former HGTV star Joanna Gaines has some great tips for gift-giving during the holiday season that we love. On the Magnolia blog, Joanna writes: "The names on a Christmas list are so much more than line items to be checked off. Those names represent the source of love in our lives and the people who have invested so much into us."