How to Create a Holiday Budget
I have been known to go crazy for the holidays and spend an insane amount of money that I realistically DID NOT have. I used to see something in the store and think of someone and then buy it for that person as a gift just because. I would use my credit card without hesitation, which led me to way more problems deeper than just Christmas gifts, which I’m sure others can relate to.
I have, however, gotten a lot better in these recent years. I have not used any credit cards AT ALL in the past 4 years. I haven’t used them throughout the year and certainly not during the holidays. I have taught myself, “If I can’t pay with cash, I don’t need it and I certainly can’t afford it!”
The holidays are approaching and now is when I start thinking about who I need to buy gifts for. I have started doing this for the past few years now and it has really helped me stick to a plan and a budget for the holidays and I’d like to share with you. Hopefully this can make the season a little less stressful and dreadful for you!
1. Who Do You Need to Buy For?
The first step is to make a list or a table or everyone you need to buy for. Think about family, friends, coworkers, children’s teachers or classmates, and any Secret Santa or Swap gift or party you were invited to.
2. How Much Do You Have to Spend, Realistically?
The next step is to determine how much money you are going to spend on each person or event that you have wrote down on your list from step one. Let’s face it, you are biased here. You are going to spend more money on your kids or significant other than you would spend on a Secret Santa gift for your coworkers. Write that amount for each person or function down next to that person’s name on your list.
Think realistically about the money that you have to spend, not what you WANT to spend. You may want to start with forming a regular budget for all of your regular expenses first to determine how much you have to spend on others. If you are already ahead of the game and have money already saved for your holiday budget, use that money and then determine how to divvy it up.
Here is where you have to be really strict with yourself and have lots of discipline. Pick your amounts and stick to it! Trust me, once you spend over the amount you set for yourself, it can lead to a free-for-all and you can spiral out of control!
3. List the Gifts
The third thing you want to do is make a list of the gifts that you are planning on buying for each person or event next to their name on your original list or table. If there is something that I know for sure that person wanted or that I was going to get, I would write that down right away so that way I know to plan on buying that item right away.
*Hint* If you are looking for some new gift ideas for family or friends, I came up with a list of 45 Clutter Free Gift Ideas that you could check out!
4. Do Your Research!
Last but not least, do your research! You should search around for the deals. Check out local stores and online websites. Don’t forget, if you are shopping online, any money that you have to spend on shipping would be a part of your budget for each person so make sure to try and bundle items together when ordering online to try and qualify for free shipping. There are also different apps that you could use to do online shopping through that will give you money back discounts. The more you research, the more money you may save!
Hopefully these tips will be somewhat helpful for the holiday season coming up. You can find a budget worksheet in my holiday planner by clicking the button below!
HAPPY PLANNING AND HAPPY SHOPPING!