On average, Americans spend around $998 during the holidays, which covers gifts, holiday items, and other expenses.
Unfortunately, this isn’t feasible for every household and often puts a damper on the season. But there are ways you can minimize your spending while showering your loved ones with the gifts they deserve. Perhaps you’re currently struggling to budget during the holidays and you’re looking for inspiration.
Sounds like you? Don’t worry, you’ve come to the right place. Here’s how to create a solid budget for these upcoming holidays.
The key to budgeting during the holidays is adjusting your expectations. Instead of sending gifts to distant relatives in far-flung places, give them a greeting card instead.
You should also be honest with your friends and family about saving money. Although it may feel awkward, your loved ones will appreciate your honesty and respect your decision. You’ll be surprised how many will be in a similar situation and they will appreciate not having to spend a fortune on your gifts too.
If you’re still struggling, then read more to improve your budgeting skills.
Make a List
With holidays budgeting, it’s important to have a list of potential recipients. Write down everyone whom you plan to shop so you don’t have a nasty surprise later on. You should also include the desired price next to each name as it will prevent you from overspending.
Compare Prices as You Shop
Creating a budget is simple, but sticking to it is the hard part. Luckily, you can reduce costs by comparing prices as you shop. This is especially important if you’re in a store as it’s tempting to make the purchase straight away.
But you can save money by Googling the product and checking it’s the right price.
Another effective way of managing a holiday budget is making your gifts. Flex your creativity skills and shower your loved ones with handmade ones. For instance, knit a blanket or paint a picture as it shows your appreciation.
Create Cheaper Traditions
When budgeting, it’s wise to create cheaper traditions. Instead of throwing a party, invite everyone for a movie marathon or decorate the house together. You could also go caroling or volunteer at a local soup kitchen so you give back to the community.
Save up for Expensive Presents
If you are planning to give an expensive gift, then save up beforehand. Give yourself several months so you can squirrel away a small amount each week. This means you needn’t make huge a huge sacrifice while giving the dream gift to your loved one, making it a win-win.
Create a Holiday Budget Today
Hopefully, after reading this article, you know how to budget for the holidays.
Start by adjusting expectations, make your own gifts, and write a list of your ideal recipients. You should also create cheaper traditions and save up for larger ones so you have the best holiday season. Happy saving!
Found this article helpful? If yes, then check out the rest of our blog for more tips and tricks.