How to Stick to Your Holiday Budget
It's easy to say that the holiday season is the most expensive time of year, and spending money around the holidays is pretty much inevitable. That said, creating – and sticking to – a holiday budget is crucial to preventing financial upheaval. Here’s a look at how to keep your finances on track this holiday season.
Save Early
Before you begin buying gifts or booking flights, you need to save. Planning your budget and saving months ahead of the holiday season can ensure you have enough money to purchase what you need without going over. That said, it’s also smart to create a list of who you’re buying gifts for. Remember that you’re not required to purchase gifts for everyone in your life.
Determine Spending Categories
Planning and categorizing your holiday spending can make it more predictable. Holiday spending can be broken into several categories, like gifts, travel, food, and so on. Even though categorizing your holiday spending can make it more predictable – it’s still crucial to save early and stick to a budget. Planning can also set a standard for your holiday spending habits that you can return to each holiday season.
Set Spending Limits
Setting limits on what you spend your money on is dire to spending within your means. Be realistic about your budget – you don’t need to buy holiday gifts for everyone in your life. Prioritize what, and who, you spend money on while sticking to a strict spending limit. One way to prevent yourself from overspending is by cutting out unnecessary expenses in your day-to-day life. It’s also wise to avoid impulse buys – remember to plan your purchases! One way you can cut back on your spending is by adopting an all-cash budget around the holidays.
Shop Around
When it comes to holiday-related purchases, comparing prices from different merchants can help you save. Some stores may even have deals closer to the holidays. Even so, it’s important to buy what you need sooner rather than later. Buying what you need before the holiday rush guarantees you’ll be able to find what you’re looking for before holiday-related price increases. Be sure to factor in costs related to holiday expenditures, like shipping, handling, or unexpected expenses.
Opt for Non-traditional Gifts
As stated, you must be realistic about your holiday budget. If you can’t afford traditional holiday gifts for the people you love, it’s not a bad idea to give non-traditional gifts. Homemade gifts can be more meaningful than something bought from a store. You can also personalize them – something a lot of commercial vendors can’t always do. If you’re not a crafty person, consider giving the gift of time. This can come in the form of spending extra time with the people you care about or accompanying them in activities they enjoy.
It’s the most wonderful – and expensive – time of year. That being said, it’s often difficult to stick to a holiday budget. But, there are steps you can take to prevent yourself from encountering financial setbacks. Happy holidays!
Hunter Morrison
About Hunter Morrison
Hunter has freelanced for various print and radio publications across Northwest Florida, including The Bay Beacon, Navarre Press, Inweekly, Crestview News Bulletin, and WUWF. He was also the Editor in Chief of the University of West Florida’s student newspaper, The Voyager. In 2023, Hunter moved to Kenai, Alaska to take up a news reporting position with KDLL Public Radio. For fun, Hunter enjoys cross-country skiing, hiking, photography, thrifting, traveling, and looking for the best Thai food around.