The holiday season is in full swing. While it’s a time for celebration, it often requires extra planning, especially in regard to finances. Travel, entertaining, and gift-giving expenses can quickly add up and put a damper on our holiday spirit. According to Investopedia, consumers spend an average of $875 on the holidays each year. By building a holiday budget, you can prepare for the additional end-of year costs and relieve some of the stress of holiday shopping. Here are some tips to create a budget that will help you have a happy holiday.
Start Planning In Advance
By creating and implementing your budget early, you’ll be in a better position to save as much as you need by the end of the year without sacrificing your everyday expenses. You’ll also be able to take better advantage of relevant sales, like Black Friday and Cyber Monday, or bundle online purchases to get free shipping.
Categorize Your Holiday Spending
Gifts may account for most of your holiday expenses, but additional costs for travel, food, decorations, and charitable donations may also apply. By deciding in advance how much you intend to spend on each category, you can adjust your budget as necessary. For example, if you’re planning to travel to see relatives or will be hosting a large party, you may need to cut back on gift expenses.
Make A Gift List…And Check It Twice
As much as we may want to lavish our friends and loved ones with gifts, it’s not always financially feasible. Creating a gift list that includes price limits for each person can help you stay on track and may also inspire some more creative gift-giving ideas, such as homemade gifts, that can save money while still being meaningful.
Enjoying the holidays can be easier with proper financial planning. By creating a holiday budget, you can reduce stress, save money, and give yourself more time to celebrate. Please contact us with any questions you may have about creating a budget that works for you.