Having a holiday budget might just provide you with more means to spend within a limit.
Through this budget, you can plan what you spend and not stress about being in debt.
Begin by listing your holiday expenses
Before you even think about going overseas, make a list of all your holiday expenses – gifts, cards, wrapping paper, decorations and even charitable donations.
This will give you an idea of how much you need to be able to splurge and travel overseas. Bear in mind that going overseas with your family will also require a lot of money.
Even if you save up for the whole year, you can still be unprepared for the expenses that roll along in the month of December.
Decide on your spending limit
Once you have determined your potential expenses, decide on how much your holiday budget should be, instead of using up your salary and the savings you acquired the whole year. Make sure you set aside enough money for Christmas expenses.Assign money to each category
Dividing your spending limit into different categories will help you allocate your holiday budget accordingly.
For example, by dividing it into gifts, food, travel expenses and even charity will help you split the money fairly and not overspend. Having a set amount helps you find ideas within that price range.
Make a shopping list
With the many discounts and offers in every mall and market, shopping is a given. Keeping within your price range can be done by making a shopping list.
List down the people you want to give gifts to and allocate a budget to each individual. Make sure you include wrapping paper and cards as well.
There is no need to splurge and buy only branded goods, but something that is memorable and meaningful.
Be smart about your shopping. Buying holiday decorations that can last for years can help you reduce your expenses.
Track your spending
As you tick off every item on your shopping list, make sure you carry a budget sheet with you. Whether it comes in the form of a physical tracker such as a journal or even in the form of a digital app in your mobile phone.
As you purchase every item, subtract it from your holiday budget to ensure you can track your spending.
This will let you know how your budget is doing at all times and make it easier to make adjustments between categories if needed. Tracking your spending is the biggest key to sticking to your budget.Savvy tips
- Use cash instead of charging your expenses to a credit card. This will help you track your expenses better and not exceed your holiday budget.
- Keep a look out for sales and discounts when buying Christmas gifts. Some presents can be bought with 50% off and more. Brave the crowds.
- Shopping online can save you money and time. When you go window shopping, take note of the items and code numbers. Look them up online as many online stores offer extra savings and free shipping.
- Earn extra holiday money by working part-time. You can earn extra money to cover your holiday expenses by taking on a holiday job.
This article first appeared in thenewsavvy.com
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