Holiday Budgeting: Seasonal Expenses and Holidays Spendings

If the holiday season has you feeling a bit overwhelmed, you aren't alone. Between celebrations, gifts, and decorating, everyone is under a ton of pressure, and it can feel impossible to keep a budget.

While making this time as magical as possible is key, it's even more important to understand how to manage your seasonal spending so you can enjoy your holidays and not have buyer's remorse when they're over, and the credit card bills begin rolling in.

Here are nine ways to make holiday budgeting easy this year.

1. Create a Budget

The first step is to create a holiday budget so you know how much you can spend. Set a total dollar amount and ensure it's an achievable number that won't force you to reach into your pocket for those credit cards, putting yourself into debt in the New Year.

2. Set a Limit for Each Person

After you know how much you can spend overall, it's time to set a budget per person. This is often the most challenging part, especially if you have multiple children and feel like you need to keep the gift-giving "equal."

Try to avoid that mindset and instead focus on how much you can spend per person and maximizing your purchases based on this amount. Don't worry about the number of gifts each person has to open; remember, it is the thought that counts.

3. Make a List and Stick to It

It's nearly impossible to escape the advertisements and push to purchase items that are "a steal", but it's important to stick to your holiday budgeting goals. Make it a rule that if the item isn't on your list, you don't buy it, no matter how good of a deal it seems. Any amount over your budget is no longer a good deal and could hurt your finances.

4. Combine Sales and Coupons

If there are items you have your heart set on purchasing, start shopping early and watch for deals, but don't stop at the sales. If you shop online, there are often ways to get even more savings by using coupon codes.

Check with the retailer first to see what they may offer. For example, you may get 10% off for signing up for their newsletter or save a little money if you pick up the item in-store instead of having it shipped. If the retailer doesn't show any coupons, do a quick Google search to see if any reputable coupons come up, or use a site like SlickDeals to automatically have deals applied.

5. Consider Free Experiences versus Gifts

The holidays are about spending time together and celebrating one another. If you don't have the budget for extravagant gift giving, consider gifting experiences, aka time together, instead. There is plenty to do around the holidays, including ice skating, winter festivals, and spectacular light displays. Sometimes, you don't even have to spend a penny to have an amazing time making memories with your loved ones.

6. Don't Try to Keep up with the Joneses

This one is hard, but it's one of the most important things you can do to control your seasonal expenses. Try not to compare yourself to what you see on social media or even in person at your family and neighbors' houses. Everyone has different budgets, likes, and traditions. Do what is most important to you while allowing you to stick to your holiday budget. It doesn't matter what anyone outside of your household thinks; if you love what you've done, that is all that matters.

7. Don't Discount the Value of Homemade Gifts

Just like time spent with loved ones is a treasured gift, so are homemade gifts. Sometimes, these gifts mean even more because they show that you took time out of your busy life to think of your loved ones and make them something. Whether you love to cook, sew, knit, create, or take photos, the possibilities are endless, as is the love you'll receive for it.

8. Decide Where You Can Cut Back

If you have a larger holiday budget than you can afford, determine where you could cut back on your regular spending. For example, if you have a large budget for eating out or entertainment, consider swapping those funds for gifts this month and cutting back on eating out or entertainment.

9. Don't Give in to the Pressure

We all put this unspoken pressure on ourselves to outdo one another and make this holiday "the best one yet." It can be the best holiday even if you don't spend a dime. It's not about how much money you spend. Instead, it's about the memories you make with your loved ones during this time. It means going out of your way to volunteer your time to those in need, spending time with family and friends, and celebrating all that this year has been for all of you. Remember that no one will think less of you if you don't spend a lot and put yourself into debt this holiday season.

Final Thoughts

The most important thing you can do to limit your holiday spending is to create a budget and use a personal expense tracker. This way, you know every dollar you spend and how well you are sticking to (or not sticking to) your budget. If you get overwhelmed, take a step back and remember the reason for the season. Getting in over your head in debt is not the goal this holiday season. Your seasonal spending should be mindful and planned so that you don't go over your budget and can enjoy yourself rather than feeling stressed about how you'll pay off the high-interest bills.