How to Create a Holiday Budget

It's easy to lose track of spending over the holidays. Creating a budget can help keep you organized and on track so you don't buy more than you can afford when it comes to gifts and seasonal events.

Difficulty: Moderate

Instructions

Things You'll Need:

• Calculator
• Notepad

1. List every person for whom you plan to purchase a gift. Include family, friends and coworkers. Remember gifts for party hosts and/or special events like gift exchanges.

2. Assign each person on your list a dollar amount. This is the maximum amount you plan to spend on a gift for that person.

3. Make a list of extras such as holiday cards, postage and shipping, baking supplies, gift-wrapping supplies and holiday decorations. Also include possible last-minute gifts for parties.

4. Assign an amount to the "extras" category. You can do this in one lump sum or assign each item a figure.

5. Add the dollar amounts from your gift list and extras lists. Compare the total number to the amount of funds you have available to spend.

6. Make changes to your budget to spend within your means. Subtract a dollar or two from each person's gift amount to reduce the total if needed.

7. Stick to your final budget when shopping. Judge your purchases by the original price, not a sale price. Put the money you save from sale items into a savings account or emergency fund.

Tips & Warnings

• Consider less expensive homemade gifts or baked goods for neighbors or acquaintances.
• Spend quality time with friends over a meal instead of exchanging gifts.
• Don’t feel guilty for not spending the same amount as others. Your income and the number of gifts you have to buy make your ability to spend a unique and personal situation.

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