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The holidays are here, and that means time with friends and family, traditions and fabulous food. It’s a time that gives us warm and fuzzy feelings. Following the holidays, if you’re like most people, you’re left with a financial mess. In your effort to make the most of this special season you went overboard and come January the credit card bills start piling up.
While the best planners start preparing for this influx in spending many are left feeling out of control and lost. If you’re one that didn’t get started there’s no need to fret just yet. The first step to preparing for the holiday spending is to create your holiday budget. You can’t plan what your money will be doing if you don’t start by considering all the special expenses during this season.
Create A Holiday Budget
In creating your budget you’ll need to consider all the potential types of spending you’ll encounter. Let’s walk through the types.
- Donations: It’s the end of the year and charities across the country will be reaching out. Consider the charities that you usually give to and leave room for new ones that catch your eye. This also includes if you sponsor a family or child in need.
- Decorating: Whether you buy a real tree every year or already have an artificial tree, there are sure to be other expenses to consider. If you’re trying to trim the budget consider making decorations like stringing popcorn and cranberries.
- Entertaining: The holidays are a reason to celebrate, which means plenty of parties to be found. Throwing your own can be quite extensive. In this you’ll need to consider invitations, food, drink and paper goods. For our more budget conscience readers, remember, there will be plenty of parties to attend. You don’t have to host your own. If throw your own is a must and you’re worried about the expense consider skipping a dinner and instead opting for a cookie exchange, a white elephant exchange or even a late night cocktail party.
- Gifts: Make a list of everyone you’ll be giving to and allocate money from your budget. Don’t feel the need to give something to everyone. If you’re trying to save money consider getting crafty (try using Cricut) or even baking up some yummy holiday goodies. Don’t forget you’ll need giftbags and wrapping paper. Remember to also keep in mind any shipping and packing costs if you’re sending gifts to friends and family. Have a babysitter, doorman or hairdresser? You’ll have end of the year tipping as well.
- Food: Even if you skip hosting a fancy dinner you’ll still want something special for your family meals. A roast or rack of lamb is not cheap. Also, are you a baker? With pies, cookies, bars and candies the grocery shopping can get pricey. Plan for it in your budget and you won’t regret making it all. Eating, now that’s another story.
- Travel: Whether you travel by train, plane or automobile, you’ll need to keep in mind travel expenses. And where there is travel, there is also meals out. Pay attention to the potential costs of your frolicking.
- Clothes: Fancy clothes make you feel festive, don’t they? If you decide you must pick up new coordinating outfits for the whole family, keep in mind all the additional items from dress socks and appropriate shoes to accessories like ties and jewelry. Trying to trim that budget? Consider swapping with friends for a ‘new to you’ outfit.
No matter what ends up in your budget remember this:
1) Be realistic. If you don’t have the money, don’t buy it. It’s not worth it to go into debt for the holidays. It makes for a bad way to start the new year.
2) Stick to your budget. You’ve got a plan and the only way for it to work is for you keep with it.
3) Shop with cash. If you have trouble sticking with a budget, opt for cash. It’s hard to spend more when you don’t have any more in hand.
Any tips on creating your holiday budget or ways to cut those costs? Share in the comments.
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