The holiday season is quickly approaching and it’s not too early (or late) to start managing the impact holiday spending can have on your budget. Read on for tips on managing your holiday spending in a way that will have you smiling in the New Year.
Make a list of expected holiday expenses. Sit down with a cup of tea and write a holiday expense list. Include holiday expenses such as airfare, gas/car maintenance, food, and holiday gifts. Determine what items are “needs” versus “wants” on your list.
Use your holiday expense list to create a budget. Once you have viewed all of your expected holiday expenses, set your budget for holiday spending while keeping into account fitting your expected bills and saving goals. It may be necessary to trim some of the “want” items out of your budget if through this process you realize that spending doesn’t allow for them. Do yourself a favor and shop sans credit cards. There’s nothing more depressing than opening up credit card bills in January for expenses you could have paid for in cash with a little planning.