8 Tips on How to Budget for Your Holiday Shopping

1.   Review last year’s Christmas expenses

Before you get excited about the festivities and start making your holiday shopping list, try to remember what your expenses were like from the previous year. This can help you determine what your average finances look like based on your family size and allow you to plan your shopping better for the holidays. As you go over last year’s expenses, take note of things you can do without this year. 

2.   Start saving early

The Christmas season typically coincides with sales events to signal that the ‘ber months have come. Since these traditions won’t seem to change any time soon, you can start your holiday savings as early as possible. Each month, set a goal to save a specific amount of money for your annual holiday expenses. This can help you manage your finances better once it’s that time of the year again.

3.   Set a holiday budget limit

You might be tempted to splurge during the holidays, but you must resist the urge to do so. Help yourself achieve this by setting a holiday budget for yourself, which should be enough to cover your expenses for you and your family. This can be separated into different categories such as gifts, meal preparation, décor, and so on. Just remember to stick to it!

4.   Plan your Christmas dinner menu ahead of time

Manage your budget forecasting better by planning your Christmas feast ahead of time. Look for your desired recipes a week or two before you need to buy ingredients. This will not only save you from last-minute runs to the store and extra expenses but also avoid impulse buying of food items and other ingredients you don’t need.

5.   Create a gift-giving list

Christmas is known as the season of giving and receiving gifts to show appreciation and affection between friends and families. With this, it would be best to make a list of presents you need to buy and to whom you are giving them. And as good old Santa would do, check your gift list twice—you don’t want to overdo it and ruin your budget. 

6.   Shop around for sales

During this time, nearly every store will be selling goods at lower or discounted prices. The best way to spot these sales is by looking around online on different shopping websites and pages. Then, prepare your budget for these sales events, and make sure to only go for the best deals.

7.   Try not to use credit too much

As tempting as it may sound, using your credit card way too much during the holidays can become a bigger burden for you when the new year comes. Be smart about your usage of credit cards; only purchase items on credit if you have enough funds to pay for them in full come month-end, and don’t max your card out for trivial purchases.

8.   Keep track of your spending

These days, there are plenty of finance tracking apps that you can download on your mobile device for free; a simple Excel spreadsheet can work wonders, too! Keep track of your expenses during this season with these tools to help you stay within your budget.