Holiday Budgeting
How many of you feel a bit overwhelmed around the holiday and need a few ideas on how to budget? Times have been tough for many and our pocketbooks are feeling a little lighter these days. Even in prosperous times though, the holidays can put extra strain on your budget so we wanted to share some ideas with you to hopefully make that a little easier.
Here are 3 Budgeting tips!
1. Set an amount you will spend then pay in cash! This helps you not overspend. When you’re using a card, especially a credit card, it’s easy to just keep using it. You just keep swiping it and your totals add up. Having cash helps you be a little more strict with your spending. When it’s gone, you are finished shopping, so it helps you stay on target and not over spend.
2. Create a budget by category. When you think of holiday spending, I think most of us go straight to the gifts want to buy, but there are more expenses for the holidays than just buying gifts.
a. Gifts, of course are your first category. You want to create a budget per person. Most likely you spend different amounts for different people in your life, so make sure to indicate what you want to budget for each person.
This may also be a good time go through your list of recipients. Consider parring down your list if you need to. Then consider a handmade or baked gift for the people that you felt you needed to. You can still spread some cheer but without it pinching your budget so much.
b. Travel category. If you have family that lives out of town that will require money to travel, account for that in your budget. This can be gas, air travel or hotel rooms. Consider if you are flying, how you will transport your gifts you want to bring or bring back with you. Do they need to be shipped? Or will you need an extra bag? Those are extra costs that need to be included.
Even if you only visit every other year, make sure that you still note the category in your budget even if you aren’t using it that year. This way you won’t forget about the NEXT year. Once you have this budget set up, no reason not to use it year to year right?
c. Food and entertainment. There always seems to be extra baking or cooking happening during the holidays. Whether you are hosting a party or bringing a dish to someone else’s party, it can put a dent in your regular grocery budget.
You may also find yourself purchasing tickets to special holiday shows or what about those photos with Santa? We all want those right? Make sure you account for these things in your holiday budget.
d. Holiday décor and attire. This is for things like any new décor you may want at home and outfits you may need for a special party. If you have kids, check their holiday clothes! Lets be honest, they probably outgrew last years clothes and may need something new.
e. Charitable donations or tips. Many of us like to give back during the holidays and the truth is, many organizations will ramp up their drives for donations. So keep that in mind as you budget so you can give as you wish to. Some people also find themselves tipping a little more at the holidays, especially for people you deal with frequently. This could be a door man, your nanny, your mail carrier or even your barista at your favorite coffee shop.
Every little bit you spend adds up, so include everything you can think of in your budget so you won’t come up short.
So maybe you’re asking yourself how to figure out the numbers for all this. The best place to start for that is last year’s spending. Try and narrow down what you did before to give you a starting point for this year. And then once you set your holiday budget, you will likely want to revisit it year to year, similar to how you would for your regular budget. Adjustments always happen!
So now are you asking yourself how in the world to pull all this off??
Well of course if you can you start early saving. If you know how much you need you can set aside money each month throughout the year to save up what you need.
Also, don’t wait till the last minute to shop. Start early and look for sales! Or even coupons and coupon codes. Every little bit you can save helps.
3. Rethink your gifting. Everything you give doesn’t have to be store bought.
a. What about making something? Make an ornament, have a picture of you and the gift recipient printed and make a picture frame. Create a center piece for the holiday table with flowers from your yard. Draw or paint a picture. See what you have around the house or what you can buy. Discount stores and dollars stores often have great crafting supplies for a steal. Consider buying bulk supplies and make gifts for several people out of those supplies. That will stretch that purchase. One thing about these handmade gifts to think about, if you have kids, grandparents love a great keepsake from their grandkids! I bet you as a parent might like that as well.
Think about how many wins that is? It’s a craft for the kids to do while they are out of school and telling you they are bored, it saves money, it’s a lesson in saving and giving of yourself for your kids AND the grandparents will love it. It doesn’t get much better than that guys!
b. Baked goods are always a hit as well. Or even Jellies or preserves. Its always tastier when homemade and that person will think of you when they use it.
c. And what about offering an experience as a gift? This could also be considered a gift of time. Offer to cook dinner. I will take the gift of good food and not having to cook or clean up all day long! Teach them a skill or hobby. Offer A free night of babysitting for a single parent.
Ideas are closer than you think. Some projects may be able to be done for free, and others may cost a bit but it’s most like truly a nominal cost.
So just like you would with a store bought gift, think about what might really speak to the person you are gifting to.
Think of what would really be a personal gift that the person would appreciate and think outside the box!!
If you are struggling with ideas you can always head over to google or local craft shops will probably have ideas and then there’s always Pinterest! You can find something great with a little effort searching.
d. If you have friends that tend to overspend as well or they are needing to save, what if you created a group volunteer experience instead of a party? You could volunteer somewhere together. Or, this would require some spending, but what if you each donated supplies and then came together to make something like blessing bags for the homeless? There are many ways you can give of your time and yourself to help others. Ask around for what is available in your area and then give it a try. It will leave you feeling fulfilled, you will have helped someone who truly needs it and appreciates it and of course, there’s not really a chance for buyers remorse in this situation!!
There are many ways to give to someone else without having to break your budget. So put your thinking cap on and maybe give something new a try.
But if you still just need a little extra boost to your pocket book, consider taking on a seasonal job for some extra income. You may even be able to sell some of your crafts or handmade items, those could help you make a few extra dollars as well.
BONUS TIP
If you decide to set aside a bit of money or do things so you can save money during the holidays for your shopping consider carrying that habit into the rest of the year. If you are already putting those dollars to the side now, why not keep doing it? It creates a great savings habit. After the holidays, Just put it in a savings account. It could even be a Christmas account so you are ahead for next year.
Your credit union or bank allows you to have multiple savings accounts. You can have different accounts for different goals, if that makes things easier for you. You could even consider some higher yield accounts. A money market account is a savings account but with a higher interest rate. If have money that will sit until next year for Christmas, a CD may even be a good choice to get you a higher return on that investment.
Ask at your financial institution and see what’s available to you and what will work for what you need. Then go to your HR and have them put a direct deposit into those accounts.
The bottom line is, don’t let the grinch steal your Christmas because of debt and over spending!!
The holidays are a time that tends to bring out joy and cheer and a desire to help and send kindness to others. So just follow your heart to the things you feel will allow you to fulfill that.
Don’t forget though, the holidays are also difficult for some. So lets all do our best to be patient and thoughtful of others.
Happy holidays everyone!