Holiday Budgeting…Yes They Are Coming!

Does it seem too early for holiday budgeting? Well, it’s not! If anything, we are starting too late! First of all, holiday budgeting and holiday savings are two different things. However, they do go hand in hand. It is impossible to save with focus if you don’t have a budget prepared. The holidays are a warm and festive time of year for most, but there is no doubt they come with financial obligations. Creating and following your holiday budget will keep you on track so there isn’t a consequence in the new year.

Who Do You Buy For – Holiday Budgeting

This may be an easy one for your family because it stays the same each year. In contrast, some people’s list changes with their phase of life they’re in. These changes include different parties attended and more kids being born or marriages and other family additions. Make a complete list of who you plan to buy for. You should include even small gifts!

Consider How Much You Need For Your Traditions – Holiday Budgeting

Tradition is a broad word, but it may not be as easy to record as you think. This category would include items and experiences. Examples of experiences would be “white elephant” exchanges or picking out a fresh Christmas Tree with the family. Items would be paper for wrapping, tape and tags, as well as photos or new holiday pajamas for your kids. Although many traditions and experiences are the LESS expensive part of the holidays, they still add up so it is good to take note of them.

It’s Time To Party – Holiday Budgeting

Do you host your family or a fabulous holiday soiree for your friends or neighbors? These events can be magical, but they sure do add up. Even if you don’t host something….do you attend? Attending parties costs money too. A new dress or tie and a bottle of wine to pass adds up. Consider these expenses as you are budgeting how the holiday season effects your normal cash flow.

Record these categories in a notebook or a computer spreadsheet. It may be eye-opening to see it all at once, but ignorance is not bliss! Having these financial obligations recorded will help you make informed and responsible decisions at a fun and emotional time of year.

In our next blog we are on to holiday savings. Now that we have our budget set we are ready to go!