How to Budget to Save for the Holidays
Budgeting may be a difficult task for many individuals, as it can involve tracking every expense. Even those who budget can be thrown off by holiday spending, as those expenses are rarely included in the household budget. As a result, it is important to budget for your holiday spending far ahead of the holidays. Doing so will prevent stress and allow you to enjoy the holidays without worrying excessively about money.
Other People Are Reading
Instructions
-
-
1
Review your holiday purchases from years prior to determine how much money you usually spend on gifts and other holiday expenses. You may decide that you wish to spend less money this holiday season. If you have difficulty establishing a holiday budget, decide what you want to spend on each person and add up the individual amounts. Write down your budget for the upcoming holiday season.
-
2
Calculate how much you must save each month to have sufficient funds by the time the holidays arrive. The earlier you begin to save, the more time you have to save money. For example, perhaps your holiday budget is $500 and you have five months until the holidays. Therefore, you must save $100 each month to reach your savings goal.
-
-
3
Implement your holiday budget plan to set aside a set amount of money each month. You should put the money into a savings account so that you will not be tempted to use the funds. If you do not have any extra income to put toward the holiday savings, consider cutting costs from your extra expenses, such as cable television or dining out.
-
1
Tips & Warnings
When you create your holiday budget, be sure to take into account any other irregular expenses such as an insurance premium that may become due during your holiday savings period. This may require more savings per month or a longer savings period.
Be sure to take into account other holiday expenses in addition to gifts, such as decorations and food.
References
- CNNMoney; Budgeting for the Holidays; Amelia Ross; 2009
- "Budgeting Basics and Beyond"; Jae K. Shim, et al.; 2008
