PLANNING YOUR 2022 HOLIDAY BUDGET
You can hear the audio version of this discussion on my podcast at Lola’s Frugal Life Podcast, on Apple Podcast, and many other platforms!
IF YOU DON’T ALREADY HAVE A PLAN, IT’S NOT TOO LATE
It seems like once summer is over we zip right into the holidays. Halloween, Thanksgiving, Christmas, New Year’s, or whatever else you may celebrate during this time. It’s best to plan for your holiday budget each year at the same time that you plan out the New Year. By doing that you will have an entire year to plan what you expect to spend. You will have more time to save up the money that is needed to cover your budget. But, if you do not have a budget for the 2022 holiday season, you still have time to get it together. Start planning it out now so that you do not end up overspending and turning the holidays from an enjoyable time to a season of stress.
WHY DO YOU NEED A HOLIDAY BUDGET?
There were so many years that I did not plan too much for the spending that would occur during this season. We would pretty much always spend way more than we expected. I didn’t have a good method of tracking what I was spending. And I really was not considering all of the costs that could potentially come up during the holiday season about and beyond gift giving. I also had this terrible idea in my head that to show someone how important they were to use we had to buy gifts that were really more expensive than we could afford. And I definitely didn’t plan for all of those other non-gift-related holiday expenses. January would come and we would have to figure out how to make up for the damage we had just done to our financial situation.
BEFORE YOU START CONSIDER YOUR VALUES
Before you start creating your holiday budget it is important to think about what is most important to you. Knowing what is most important to you about the holiday season can help make it easier to make cuts if you find out your budget is too high once you get it all down on paper. Holidays do not have to be expensive and they do not have to be so stressful. The expense and the stress are something we mostly create ourselves. We sometimes can feel like we need to get everyone the best gift and do all of the things. But, if you really consider on what you value most and focus on that, it can make the holidays a lot more enjoyable.
MAKE SURE TO INCLUDE EVERYTHING IN YOUR BUDGET
A holiday budget is not only a list of individuals we want to buy gifts for with the amounts we want to spend on them. It’s important to consider that there is often a lot more expenses that come up during the holiday season other than the cost of gift giving. If cannot or do not want to spend too much during the holidays it is still important to go through this process. It’s easy to not realize how much potential spending there can be during this time.
Thinking through everything that may come up will help you prepare for what you do or don’t want to spend money on. It will also help you to see if you have enough money to spend on all the things you want to spend on. It’s much better to know this at the beginning so that you can make adjustments and decisions. You don’t want to get caught up in the moment and not have time to think through your holiday spending decisions.
MAJOR CATEGORIES YOU MIGHT WANT IN YOUR HOLIDAY BUDGET
Gifts. Make a complete list of everyone you purchase gifts for. Don’t forget any teachers, dance instructors, sports coaches, work events, etc.
Gift-giving supplies. This would include things like tissue paper, gift wrap, tape, gift bags, gift tags. I always like to stock up on these during the holiday clearance sales from the prior year. I do still usually end up needing to pick up something though!
Special events. We usually do some type of drive-through light display that has a flat fee per car. There are also some home displays in our area that collect money for a charity that I need to put money aside for.
Food and drinks. For example, sparkling cider, alcoholic drinks, sodas, etc. Anything special for the holidays that you might not normally purchase. Do you make any special meals, desserts, etc? These often cost more than your typical groceries. These extra costs should be part of your budget. Me and my daughter’s also go to IHOP for breakfast each year on Black Friday. This needs to be in the holiday budget.
Other. Gas for any extra traveling you might be doing. Holiday cards and stamps needed to mail them. Advent calendars. Gingerbread house kits.
Day after Christmas shopping. Each year we go shopping the day after Christmas looking for some clearance stuff. Could be wrapping paper, decorations, who knows? So, I put some money aside for that too.
New Year’s Eve – I include this in my holiday budget too. The amount I have is to cover things like appetizers, drinks, hats, and blowers.
STICK TO YOUR PLAN!
It can be so easy to get caught up in all of the excitement of the holiday, but it is really important to make sure you stick to the budget that you set. While you might see some gifts that you think will be great but don’t fit into your budget, there will always be a bigger better gift. Try to take your time and find something that’s special and also fits within your budget. Unless you know there are a few extra dollars available in your budget, don’t grab extra stuff that was not on your list. Try not to make an impulse purchase. The stores are set up this time of year to really play on your emotions and get you to make impulse purchases. Think it over, check your budget to see if you can make it work, and then decide.
TRACK YOUR EXPENSES AGAINST YOUR BUDGET
If you are not tracking your holiday purchases against your budget you will most likely have a difficult time sticking to your budget. It’s a good idea to record your purchases against your budget as soon as you get home from a shopping trip, or right after you purchase something online. If you are not tracking timely, it’s very difficult to remember what has already been purchased and how much is left to spend for various people. When you go shopping, bring a printout (or electronic version) of your most recently updated holiday budget with you. It makes it so much easier to remember who you still need to shop for and how much you have available to spend.
SOME OTHER TIPS
Make notes for next year. If I find that I did not budget enough in a certain category, or I missed budgeting for an expense that I always have, I make a note in my budget file so that I don’t forget next year. Start shopping early! Like all year round if you are able to. By setting your budget at the beginning of the year, you can take advantage of the time you have to be always on the lookout for a great gift. When shopping all through the year, you don’t have to make that last-minute purchase that might end up putting you over budget because your choices are limited. I don’t really recommend this for certain age children or teens, as they usually want something totally different by the time it gets closer to the holidays.
MAKE SURE TO ENJOY THE HOLIDAYS!
Don’t stress yourself out by buying more than you can afford. You will feel much better and can enjoy your days more when you spend what you can afford.
Thanks so much for checking in! If you would like to hear the podcast version of this topic to check out Lola’s Frugal Life Podcast! Also, be sure to check out my other blog posts on this site!
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