9 Strategies for Holiday Budgeting [& How to Maintain It]

Want to budget for the holidays this year and actually stick to it? Here are some great tips to help you manage your holiday spending and keep everyone, including yourself, happy!

As the holidays approach, many people feel financial stress instead of joy. The spending that comes with the holiday season can be overwhelming. But by creating a budget and sticking to it, you can reduce stress, avoid unnecessary spending, and prevent taking on extra debt.

Here are nine tips to help you create and stick to a holiday budget, so you can even have some money left over when Thanksgiving and Christmas are done.

First, figure out how much money you have to spend. Ideally, you want to cover all your holiday expenses with cash. If necessary, you can dip into your emergency fund, but try to avoid going into debt.

Check your holiday sinking fund or start planning for your holiday expenses now. If you’re early, you can build up your cash before making your gift list. If not, see if you can save some money over the next couple of months.

You might also consider taking on some extra jobs for quick cash. Options include under-the-table jobs or starting a side hustle. Here are a few ideas for fast cash:

Now that you’ve set your spending limits, you can stretch them by taking on these jobs. Add it all up to see how much you can spend on Thanksgiving, Christmas, Hanukkah, or any other holiday you celebrate.

Once you know how much you want to spend, decide what you want to spend it on. Many people end up with little money left in December because they don’t account for all their expenses. Make sure you list all your holiday expenses, such as:

The list might seem long, but it’s important to cover everything. Check to make sure you haven’t missed anything.

With your expense list ready, it might seem overwhelming. Prioritize your expenses by listing them from high to low importance. Focus on covering the most important items first. For example, if wrapping paper and greeting cards aren’t crucial, allocate less budget to them than to gifts.

By deciding your priorities, you can budget more accurately. Now, give every dollar a job. This means knowing how much you can spend on each gift, so you have a clear goal when shopping. Try to make close estimates to avoid frequent adjustments.

Add up all your spending. Don’t be shocked by the total. In 2019, consumers expected to spend around $942 on Christmas gifts alone. When you add travel, food, decorations, and donations, it adds up quickly.

If your total exceeds your initial budget, reassess your priorities and see where you can cut back. Cutting back on holiday expenses can be tough, but focusing on your priorities will help. Try to reduce bigger costs to get closer to your goal.

If there’s no room left in your budget, look for ways to make or save extra money. You can:

Planning ahead can also help you save money. Make a shopping list for each person with potential gifts within your price range. This helps you stick to your budget.

You don’t need to detail every gift, but it helps to know what you want to buy and where to shop. If you’re struggling with gift ideas, here are some suggestions for women who have everything.

Plan for upcoming sales. By planning your purchases, you can save money on holiday gifts. Shopping online can also save you money. Take advantage of Black Friday sales and free shipping offers.

Buying gifts early can save you money too. The closer it gets to the holidays, the fewer deals you’ll find. Plus, stores are less crowded earlier in the season.

Track your purchases as you shop. This ensures you stick to your budget and makes adjustments easier. Some people prefer using cash funds for holiday purchases, but this might not work for online shopping. Using a debit card or reloadable prepaid card can help manage your spending.

Personally, I like using a spreadsheet to track all expenses. This gives a clear overview of how much money you have left to spend.

If all else fails, consider Secret Santa. Instead of buying gifts for everyone, each person buys one gift within a budget. There are websites where you can enter names and wish lists, making it easier to get what you want without buying for everyone.

Don’t be too hard on yourself. Give it a try and see how it works out for you!