Budgeting for the Holidays

The holiday season is quickly approaching and can be one of the most stressful times of the year due to financial pressures. Between the gift-giving, holiday entertaining, and the regular monthly expenses, it all adds up to an expensive time of year!

When you budget for the holidays early, you'll have a handle on your holiday shopping and spending throughout the season.

Benefits of a Holiday Budget

Keeping a budget during the holiday season will benefit you in many ways. First, you'll avoid overspending, which will keep you from playing "catch up" when the season ends.

Second, you'll reduce financial stress throughout the holiday season, which will make the experience more enjoyable for you and everyone around you.

A couple of simple budgeting practices will have a positive impact on your holiday spending, which can help to prevent you from going overboard or becoming overwhelmed.

Try these holiday spending budget strategies to ease financial tension during this hectic season:

1.?????Create a budget. Determine how much money is available for you to spend based on your current financial situation. Be realistic with your holiday spending budget, regardless of how much or little you can play with. This is your spending limit, and your goal is to stay within it.

2.?????Make a list. List everyone that you wish to buy a gift for so you can create a realistic plan to accommodate your gift-giving needs. Keep in mind that handmade gifts are treasured and that now more than ever people want to spend time with each other. Think about affordable ways you can build memories, such as a pot luck friends dinner at your home, a cookie swap, a recipe exchange, etc.

3.?????Create a budget worksheet. Create a basic budget worksheet on paper or on your computer. List every gift recipient in one column. Create a column to brainstorm ideas, a column for your planned budget for each recipient, and a column for how much you actually spent on each person. Track overall budget and actual spending as well to see how you do at the end.

4.?????Tweak as necessary. Make changes to your budget whenever you overspend on one person so you stay within your overall budget. Look for similarities within your gift list and keep your eyes open for sales that offer " buy one get one free" items that can take care of multiple people at the same time.

5.?????Trim as necessary. Giving gifts to your neighbors, your children's teachers, and service providers like the mailman is a nice sentiment, but not necessary. A nice note of gratitude, some homemade cookies, or a heartfelt drawing or card from your child will be a treasured token of appreciation. If your budget cannot support your list of recipients, trim the list!

6.?????Start early. When working on a budget, starting early offers a definite advantage. The more time you have to get your shopping done, the more time you have to comparison shop, shop sales, and look for deals. Avoid leaving your shopping until the last moment; otherwise, you'll likely pay higher prices and spend frivolously just to get your list checked off.

It only takes a few simple changes in your spending and budgeting habits to improve your holiday shopping experience. By starting early and following a plan, you can overcome the obstacles of holiday shopping, budgeting, and spending with ease. Enjoy your holidays!