For many, the holiday season is the most stressful time of the year. Extra expenses can add up quickly and spoil the joy and excitement we w ant to experience during this time of the year. However, these five simple tips can make holiday budgeting easier…and that can definitely relieve the financial pressure and help you enjoy the season.
It’s amazing how we often end up surprised at how much it actually costs when the holidays roll around. We end up surprised and distressed but if we stop to think about it, we know that there are extra expenses that are incurred every year.
Things like the holiday turkey or ham. Or extra ingredients to bake those delicious desserts we look forward to all year. Traveling to see family, and of course, the gifts.
Instead of going through another year feeling frustrated and upset, why not sit down and create a holiday budget? Think back to all of the things you did last year and estimate (or take a look at the actual bills if you’ve still got receipts or credit card statements!) how much money you need to set aside for those extra holiday expenses.
The great thing about holiday budgeting is that once it’s done you can pull it out in subsequent years and simply make changes to account for a growing (or dwindling) gift list and for changes in the prices of items like food or travel. It will give you a starting point in the years to come.
Here are my best tips to help with your holiday budgeting.
1. Make a list of your expenses
You want to be as realistic as you can when you sit down to make out your budget. Divide expenses into categories such as gifts, decorations, cards, parties, food, charity, etc.
Once you’ve got your categories you can then start listing specific items within each one. For example list out the specific people you need to buy gifts for and put a dollar amount that you expect to spend per person.
Under your food category be sure to list out the meals you’ll be cooking or that you’re expected to contribute to and estimate how much you’ll need to spend at the grocery store to make it all happen.
2. Determine your priorities
In an ideal world we’d be able to do everything we want. However, most of us don’t live in an ideal world and we’ll need to make some conscious choices about what is most important to us.
Consider your family and friends and think about your individual budget constraints. Then list things out in the order of importance to your family to help you decide what to do and what needs to be cut. This will come in handy later when you’re actually doing the scaling back.
3. Consider ways to add more money to the budget
With a little ingenuity and creativity, you might find ways to add more money to the holiday budget. Perhaps picking up some odd jobs here and there, or selling some unused items would add a little extra cash. Or take a look at what activities you can stop doing – even for a short time – in order to save some money that can go towards the holidays.
4. Don’t forget to plan for the unexpected
It’s a fact of life that things are going to happen that we haven’t planned for. While we don’t know exactly what these things will be, we can be pretty sure that something will happen. Having a budget line for “holiday surprises or emergencies” is always a good idea. If you end up not needing it then you’re simply money ahead. But there’s something about planning for the unexpected and being prepared for it takes some of the frenzy out of it.
5. Scale back and reduce expectations and obligations
Once you’re aware of what’s coming up, you can figure out if – and how much – you need to adjust. This is where having that prioritized list can come in handy. For example, if you notice that sending Christmas cards was way down on the priority list, then that’s an obvious cut you can make if you notice that you’ve got more people to buy gifts for this year. Making a concerted effort to focus on the higher priorities will make a more enjoyable season for everyone.
Remember that budget is not a dirty word
Having a holiday budget is just good old money management. It helps you get through the holiday season with less stress and upset so that you – and everyone around you – can enjoy the festivities. A calmer and more relaxed you translates into a happier family which one goal we all have for the season.
More to help tame the holiday frenzy:
I’m a retired educator, mom of three adult children, cancer warrior, sandwich generation member, and lover of life!
I help older women create & live a life they love through radical self acceptance, unapologetic goal pursuit, and relishing the joys of home.
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