The holidays can be a financially stressful time but, by creating a budget and sticking to it, you can relieve some of that stress. Here are some helpful tips for budgeting for the upcoming holiday season from Keenan’s Accounting Service.

 

Make a List & Check It Twice

Start by making a list of your holiday expenses such as work gift exchanges, travel expenses, family gifts, charitable donations, outings, etc. This will give you an overall idea of what your ideal budget should be and help you decide on an overall spending limit. If you have set aside money for the holidays, stay within that amount, or decide where you can allocate funds from your regular budget.

Divide & Conquer

Once you have decided upon your limit, divide your list into categories. Assign a dollar amount to each category, then to each item within that category. Having a set amount for each item enables you to stay within the limit you have set as it narrows down your options before you even begin shopping.

Be a Smart Shopper

Have at least 2 shopping options for each gift and check your local stores first for possible sales. Black Friday and Cyber Monday are great days to take advantage of online deals and in-store specials. Comparing your list with the sales beforehand can save you time and you may even find some other great gifts or stocking stuffers for less money than you had budgeted for, which is always a plus.

Track Your Spending

Keeping track of your spending is the key to sticking to a holiday budget. Keep the receipts for each purchase and be sure to update your gift list and your budget after each shopping trip. By doing this you will always have an accurate accounting of what you have left to spend and make it easier to make adjustments within the categories.

Shopping online can help you save money, making it easier to comparison shop, but don’t forget to order early enough to account for shipping. Most online retailers offer discount codes and free shipping offers, especially around the holiday season.

Pay for your purchases with cash as much as possible. Debit and credit cards can make it easy to overspend, not to mention the interest charges that can quickly add up in the new year!

The key to any budget is discipline. While it is easy to overspend, with a little planning, tracking your purchases and staying within the limits you set will help to make the holidays a little more financially stress-free.