Budgeting for the Holidays Makes Everything Less Stressful

Yes, you heard that correctly. Budgeting for the holidays doesn’t add stress. In fact, budgeting for these additional expenses actually makes life less stressful because you’re only spending the money you can really afford. So, how about feeling calm and peaceful in January because you made smart decisions instead of experiencing buyer’s remorse?

Where Should You Begin?

Well, first let’s talk about the fact that the holidays are supposed to be fun, and the real satisfaction comes from the act of giving something special, not from giving expensive presents. So, with that in mind, make a list of all the expenses you expect to incur during the holiday season. Try to think of everything that might come up. Your list may include:

• Family gifts
• Cards and postage
• Decorations
• Christmas tree
• Other gifts for teachers, gift exchanges, etc.
• Charity donations
• Holiday meals

Set Your Limit

Next, take a hard look at the money you have available to cover all your holiday expenses, and decide on your spending limit. Be sure that you’re planning to use only money that you’ve saved up or set aside for Christmas. People often make the big mistake of spending money that’s not truly available.

Update Your List

Now, break down your total into dollar amounts for each item on your list. This will help you understand how much you can spend on each gift. Get ready for a mental breakthrough! Instead of hating the boundaries of your budget, you’ll find that it’s liberating to spend money within the guidelines, knowing that you won’t have any regrets later.

Time to Shop

Brainstorm ahead of time, and come up with creative ideas that fall within your price ranges. Here’s where Google is your friend! Look for online sales, sample sales, eBay, and Craigslist to try to source pricey items at a lower cost. There are also some great deals to be had on Black Friday and Cyber Monday. Think of this as a huge challenge that you want to win.

Track Your Results

As you shop, be sure to immediately note how much you spent, and save your receipts. This can be as simple jotting the information down on a piece of paper, or you can use an app or a spreadsheet to keep a running total. This way, you always know if you have extra money to spend or if you need to reduce a dollar amount in another category.

Achieve Your Goals

Budgeting for the holidays will bring you some serious stress relief! Imagine getting through the holidays without going into debt! If you plan ahead, stick to your list and budgeted dollar amounts, and use cash only, you’re probably going to be successful. If you’re feeling squeezed, you can always pick up a holiday job for extra cash or sell your gold. And next year, you can plan for a more generous budget by setting aside money each month starting in January. Are you ready? Let’s do this!