The holiday season brings a sense of excitement and magic to homes all over the world.  However, along with the holiday season, families can feel financial stress.  The gifts, parties, and travel – if they have not been previously budgeted for, they can all feel too much.  Many folks feel torn between wanting to let go and enjoy the holiday festivities, while also not blowing their budgets and starting January in the red.  Getting through the holiday season without regrets starts with creating a clear, decent budget.  It may be necessary to save year-round to ensure you’re not panicking when the end-of-year festivities begin.  

Planning here is key.  Make sure to set clear limits that make sense for your life, and make smart choices when making purchases.  Remember, you can have a good time without completely tanking your finances. Having a clear budget will help you avoid the common financial traps, like overly leaning on your credit card or dipping into your emergency fund.  A budget will help you keep your finances in check, whilst avoiding feelings of guilt and panic.  

We all know that when life seems to be going smoothly, life can throw its swing balls and throw a plan off track.  It’s a good idea to also expect the unexpected.  Unexpected plans can pop up, like the need to buy a last-minute gift or finding yourself hosting an extra dinner.  In your budget, make sure to build in a buffer to help keep things fun without the financial hangover in January. 

Strategies for Balancing Saving and Spending

When planning a holiday budget, it all comes down to planning ahead – and then sticking to it.  It’s a good idea to map out your budget early, even try jotting down a first budget plan a few months before.  Be realistic and make sure to have space for gifts like dark humor shirts.  

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A Realistic Holiday Budget

Your holiday budget should also line up with your real income and bills – along with those special extras.  To start, make a list of everything you think you will spend on.  Include gifts, decorations, food, and maybe a donation or two.  Even take into consideration those fun buys like nerdy christmas ugly sweatshirts.  

Seeing your budget on paper, in black and white, helps you to stick to what you can actually afford this season.  Remember, the numbers do not lie!  The whole trick of budgeting is to help you understand that those ‘one more thing’ impulse buys can completely throw you off track.

Financial Goals During the Holiday Season

After working hard all year, it is very tempting to let loose and go off budget during the holiday season.  You deserve it, right? Making a clear budget in advance will keep your bigger financial goals in the forefront of your mind.  We all know that splurging can be fun, but wouldn’t you prefer starting the new year fresh and on track to meet your financial goals?  

If you are saving for a rainy day or working on paying down debt, try not to let the holiday spirit derail that.  Keeping your priorities straight means saying no to the extras that don’t add much joy.  That way, you can still enjoy the holiday season but without ruining your long-term goals.

A Dedicated Holiday Fund

During the year, plan to have a dedicated holiday fund.  By not leaving holiday budgeting to the last minute, you can still splurge and enjoy the holiday spirit without throwing your budget off.  

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Each month, dedicate a small amount to the holiday fund, an amount that you may not even notice.  But once it all adds up over the year, you will end up with a nice chunk of money to enjoy.  That stash will cover gifts, festive gear, and all those little extras.  The idea is to keep the credit card well away!

Plus, keep your everyday spending and your holiday stash separate.  This will help keep your budget clear and easier to stay on track.  

Making the Most of Discounts and Sales

Whilst thinking about what gifts to buy, try to look for discounts and sales.  Black Friday and Cyber Monday are the days to look for, as there are opportunities to save a ton of money.  Start tracking deals early, always compare prices, and don’t get sucked into buying impulsively without previous research.  This ensures you will get the best deal on gifts for your loved ones.