Holiday budget considerations

Six budgeting tips for less stress this holiday season

Believe it or not, the holidays are fast approaching.

Does anyone else feel like these things just sneak up on you every year?? I mean, wasn’t it just the beginning of summer?

Either way, it is in fact the middle of October and it is finally beginning to feel like Fall. Halloween, Thanksgiving and the December holidays are right around the corner!

Just like Santa makes his list and checks it twice, you can start preparing now so you can get a bit of a head start on the upcoming festivities.

And where better to start than in your budget! I like to have a holiday gift category in my budget that I save a little into each month, so I’m prepared come November. Plus, if I find the perfect gift for someone in August, I have the money ready and waiting to pay for it!

But, I’ll admit, I was behind on funding that category this year. Hey, we are all human, it happens! So, don’t worry if you are in the same boat. Starting now is the next best thing! Here are my recommended steps to get you on track.

1 – Set a spending limit

Start with deciding how much you want to spend this year. There is no one size that will fit everyone here. If you make the decision to cut back a bit this year because that’s what feels comfortable, that’s completely ok. The last thing you want to do is not think about your total spending budget, put it all on a credit card and then start 2022 off feeling like you’re already off to a poor start. So, choose what feels right for you this year!

2 – List out your expenses

You may need to consider other expenses in addition to gifts. Will you be traveling this year? Are you hosting a family meal or part of a work gift exchange? How about holiday décor or family activities such as photos with Santa? Are matching PJs part of your family tradition? Also add a line for charitable giving if you plan to make a donation this year.

3 – Decide what is most important

As with any part of your budget, let your priorities dictate where to allocate your funds. It’s ok to cross an item off the list if you decide it isn’t a top priority for you this year. Maybe you decide that you’d like to spend time with your extended family and give your kids fewer stocking stuffers. Or maybe the matching PJs don’t rank as high as they did last year. The choice is up to you!

4 – Give those dollars jobs

As any YNAB fan knows, giving every dollar a job is rule number one! Take the amount you decided from the first step and allocate those funds based on your priorities. If something is a higher priority, give it a few more dollars than the items at the bottom of your list.

5 – Track your expenses

Keeping track of where you are actually spending those dollars is just as important as any other step listed here. Using a tool like YNAB is a great way to keep yourself accountable. Mental accounting doesn’t always do the trick so keeping a record as you go will help you stay on track and adjust as needed. And yes, it’s ok to adjust the budget! As long as you are making a conscious choice to move your dollars around (assuming you have the dollars to move), you budget doesn’t have to be set in stone (or any of these other budgeting myths!).

6 – Enjoy the time with your loved ones

Last and possibly most important, try not to get so wrapped up in the gift giving that you forget to enjoy the time with those that are important to you. It’s not about the amount of money you spend or the number of gifts you give or receive. Slow down and enjoy the time you have with those around you. Those memories may be worth more than the money you’d spend all season long.

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