How to Budget for Holidays and Special Occasions

Does your budget get derailed every Christmas, or when you have your anniversary? Do you have to break out the plastic every time someone has a birthday? Don't let special occasions become a special problem. Here are some tips for enjoying holidays and celebrations without breaking the bank.

Difficulty: Moderate

Instructions

1. Go back over your financial records and see how much you spent on birthdays, holidays and other special occasions last year. Were you way over budget? You may need to start rethinking the amounts that you can afford to spend at these times.

2. List out the probable events that you will have to pay for this year. Some experts suggest that you should spend no more than 2 percent of your budget on special occasions. Allocate the dollar amount you will spend between these occasions. Don't forget to include the cost of cards, wrapping paper and so forth.

3. Try opening a Christmas Club account at your local bank or putting cash in an envelope so that you can see where you are for the year. Whatever you do, stay away from using credit cards for your purchases, unless you can pay the balance off in full at the end of every month.

4. Consider homemade gifts for some of your occasions. Try cooking a gourmet meal at home for your spouse for your anniversary; even the cost of a babysitter on top of the ingredients is likely cheaper than taking him or her to the Ritz.