The Best Way to Budget for the Holidays

Black Friday is one of the biggest shopping days of the year, and though there are plenty of huge sales, it’s easy to lose track of spending and completely blow your budget. While the important part of the holidays is spending time with family and friends, we all know that the holidays can bring on a ton of spending. Between gifts, decorations, and food, it’s easy to completely overspend and splurge, but it is possible to do everything you want without breaking the bank. This is the best way to budget for the holidays:

Make a list and check it twice:

This may be a completely cliché line from a Christmas song, but it is extremely important when you’re trying to budget for the holidays. Make a list of all the people you’d like to get a gift for, be it big or small, and if you’re someone who likes to entertain, make a list of events you’re planning on hosting so you can budget accordingly.

When making a gift list, it’s best to break it up into tiers: People you love who you’re willing to go all out for, people you want to spend a medium amount for, and people who you just want to thank for their hard work without spending a lot (i.e. your mailperson, your employees, etc). By breaking it into tiers, you can start to figure out pricing. When gifting groups of people, budget to spend the same amount on each person, or to make it easier, get everyone the same thing.

For events, figure out how many people you want to have, what kind of event it is, and give yourself an overall budget that you want to stay within. This way you can curate food and drink options that will keep your spending under or at your limit.

Start early:

There’s nothing that will break your budget for the holidays like having to get everything at the last minute. When you’re desperate and scrambling, you often forgo bargain hunting and grab whatever is easiest, not the cheapest. The best way to budget for the holidays is to start early and give yourself time to shop around. While there are some great sales in between thanksgiving and Christmas, starting early will give you time to look for the best pricing option.

By starting early, you will also be able to purchase a little at a time, which is much easier on your wallet than purchasing everything at once. While you may be spending the same amount, it still seems a little easier to buy and pay for a little at a time.

Don’t fall into the trap of sales or big discounts:

While shopping for bargains is great, (I’m a huge bargain hunter) it is important to make sure that you don’t get distracted by sales and low prices. What does this mean? It means that you need to stop and think about if you really want/need the product, or if you’re simply buying it because it’s on sale. Even if you’re buying a sale item, buying something you don’t need/wouldn’t purchase at full price is still money you don’t need to spend.

Include some gifts for yourself in your budget:

One of the biggest mistakes people make is not to budget anything in for themselves. While shopping for others is fun, you know that it’s more than likely you’ll come across something you really want. It is the holidays, so treat yourself (within reason) and budget to get yourself a few small things or something special that you really want. If there’s something you’ve had your eye on which goes on sale, go for it. Planning ahead of time for such purchases ensures that you’re prepared and aren’t going to massively overspend.

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It’s easy to fall into the trap of overspending during the holiday season,so I’m sharing my best tips on the best way to budget for the holidays! Put in a little effort, plan ahead, make sure you stick to your strategy, and always remember that at the end of the day, holidays are about love, not money!

Happy shopping!

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