If you tend to overspend during the holidays, you’re not alone.
In fact, the average American spends over $1000 on holiday gifts, goodies, and travel. Spending this money often results in the perfect holiday gift, party, or vacation memory. Therefore, there’s no doubt that this is money well spent. All you need to do is develop better spending habits and begin saving for your next vacation.
However, this doesn’t mean that there still aren’t ways you can cut back on your spending so you’re not totally depleted on funds once the holiday season is over. If you look around, you will find simple ways to save money and get back on track.
When it comes to saving money around the holidays, the best thing to do is to create a holiday budget.
Check out this guide to discover the top tips to follow to create an affordable holiday budget.
1. Create a List of Holiday Expenses
First things first, you need to figure out where your money is going to go during the holiday season. So, start by creating a list of holiday expenses.
This list should include everything from wrapping paper to office gifts to holiday party treats. This will give you a good idea of exactly what you need to pay for and what a realistic budget will look like.
2. Create a Budget
Speaking of budgets, once you have your list of holiday expenses, the next thing you need to do is to create a budget for everything you need to buy.
You shouldn’t plan to spend more than you already have in your bank account, as relying on your credit card to pay for gifts is never a good idea.
Also, make sure you split your budget into different categories. This means figuring out spending limits for each gift and every other item on your holiday list.
3. Find Ways to Cut Down on Expenses
Once you have your budget and your holiday shopping list created, it’s time to figure out ways to cut down on some of these expenses. Remember, the goal is to always come out under budget! Here are some things you can do to cut down on holiday expenses:
- Make holiday treats at home instead of buying them from bakeries
- Take advantage of Black Friday sales as well as other sales throughout the year
- Shop for gifts and decorations in the off-season
- Buy items like wrapping paper and tape in bulk
- Make your own wrapping paper at home using brown parcel paper or newspaper
- May your own DIY holiday decorations and gifts
In addition to finding ways to save money during the holiday season, there are also things you can do to earn extra money. One of the best things to do is to take on a part-time, seasonal job to earn some extra cash.
4. Keep Track of All of Your Expenses
It’s important to keep track of all of your expenses to make sure you’re not going over budget.
We suggest either creating a spreadsheet or keeping a small notebook to write down all of your expenses. Also, don’t forget to count holiday-related outings and any additional expenses so you can more accurately track your budget the following year.
Are You Ready to Rock Your Holiday Budget?
Now that you know how to create a holiday budget, it’s time to put yours together.
Also, be sure to check out this guide to discover some easy ways to save money year-round.