Holiday Budgeting Tips: Celebrate Without Financial Stress

With just a few, short weeks until the holiday season you may or may not have started to think about gifts for your loved ones and how much you think you want to spend. Remember, it’s not just about giving. When factoring in your budget, there’s also socializing to consider and perhaps get-togethers at home.

Many Americans like to host Christmas or holiday drinks at home, make lunch or dinner for family and friends and even throw a New Year’s Eve party. All of these events cost money on top of gifting, so rather than leaving your bank account looking decidedly unhealthy in January, it’s a good idea to set up a strict holiday budget to stick to.

Creating a budget is always a useful tool when there’s a goal at the end, and it doesn’t have to be over-complicated, a simple budget is all that’s needed to make sure you have the right finances in place to enjoy the holidays without worrying. Plus, once you get into the habit of budgeting, you can apply it to other calendar dates and learn how to be financially savvy too!

Get Technical With a Spreadsheet

Firstly, with the advance of technology, you don’t have to stick with a basic, manual spreadsheet and a calculator. There are some excellent tools online that pave the way to financial efficiency. Most PC’s are equipped with Excel so explore a Microsoft Excel spreadsheet. There are lots of budgeting templates available in Excel, and if you have a basic understanding of how Excel works, they’re pretty easy to fathom out. Alternatively, Google Sheets has a budget template, but you have to enter your data manually. You have to be religious about filling in spreadsheets, so even if you set aside five minutes a day after dinner or even before you leave for work – it’s worth getting into a daily habit, and once you start, you might find you enjoy that feeling of control!

For those of you who don’t want to use online tools, go and buy a lined notebook and use it as your “Holiday Budget” book. This (or your spreadsheet) is where you will keep track of all your financial transactions and keep an eye on spending and your bottom line. List every single thing you spend your money on over the month so you know what you’ve got left and also use it as a tool to see where you could be saving money too.

If you’d rather rely on your smartphone experience, then try an app such as “Mint,” which comes strongly recommended. It’s so easy to use, and it almost does everything for you (except for stopping you from buying something you really don’t need!). It works by you entering your information which includes bank account, credit cards, and savings accounts and then it tracks your spending (and saving). You can even add goals, essential for holiday gift shopping.

Work Out What You Spend On Average

So, now you’ve done the first step, key in everything you’ve spent so far this month and work out what you’ve got left over. Call this an average for the coming months (unless you’ve had a huge outlay that is out of the ordinary).

Do You Have A Holiday Gift Fund?

If I had written this piece six months ago, I would have suggested that you start a holiday gift fund and save money in it, so you have a ready-made amount. Maybe you’ve done that; maybe you haven’t. If you have – excellent – you have a great holiday gift budget starting point. Check that balance, mark it down and then think about what you’re going to need to spend just to live. Set aside an amount for emergencies (there are also unforeseen expenses), travel, entertainment, socializing and see what you’re left over with (you still have your monthly pay-check to add to it too).

Find Your 2016 Holiday Shopping List

If you know what you bought last year, get together your 2016 holiday shopping list and see who you bought for as well as how much you spent. Use this as the starting post for this year’s shopping. Work out the total amount you spent last year and ask yourself if it’s financially viable this year. There’s just no point in spending more than you earn. You’ll end up starting 2018 in debt and probably struggle to pay it off. Only spend what you can afford and don’t worry about what friends or family think if you just can’t afford to be overly generous. To be frank, anyone who questions what you spend doesn’t deserve a gift!

Set a Budget Per Person

Write a list of people you are buying for and write a budget alongside that person. Add it up to see if it works against what you have to play with. If it doesn’t, work out how much you need to cut back on and re-visit the list. It might be you just need to shave off $5 per person which should be do-able.

Once you’ve allocated a budget per person use this useful tip! Get a set of envelopes and write each person’s name on it that you are giving a gift. Fill each envelope with the cash for their gift, seal it and put it aside. This will stop you going over budget and buying something on a whim! By spending cash only, you know exactly what you’re spending, and you won’t top up a credit card.

Always, always have a spending limit and don’t be tempted to go over it. Walk away – however much you think your mom will love that outrageously expensive faux fur throw. I promise you, you will find it elsewhere and cheaper, or you will find something equally gorgeous she’ll adore!

Places to Shop For Discount Products

It’s now time to go shopping and guess what? You should never have to pay full price! Generally, you can find discounted goods or goods that are similar to full price. If you can afford to pay full price, then that’s great, but if not, discounts and offers are essential.

1. eBay

Have you thought of shopping on eBay? It’s a great hub for new products as well as used, and you can usually pick up a few bargains. Lots of people list their unwanted gifts, and they could be exactly what you want for your dad/sister/brother. If you know some of the people on your list like certain products or labels, set up an eBay alert for when they are newly listed. That way you can keep an eye on the list price and make a purchase if the listing is within your budget. If you sign up to a website such as befrugal.com you get a $10 cashback bonus. This website can give you up to 40% off on your favorite brands, and you can combine all your coupons and store cards for cash-back. Well worth a visit.

2. Google Shopping/Discount Sites

Always cross-compare prices online. There are usually cheaper options. Search Google Shopping or hop onto discount sites to get codes for 10%, 15% or even 20% off. While not every store or brand use these codes, you’ll be surprised how many do run offers that you just didn’t know about! It’s also worth signing up to their newsletters as often they run incentives to join. https://www.coupons.com/coupon-codes/usa-today/.

3. Deal Sites

Don’t be shy to use Groupon, livingsocial.com or similar crowd-funder discount websites. Sign up to them today and take advantage of some of their great gift offers. For example, you could buy your best friend a massage, for a fraction of the normal price. It’s these deal websites that have some excellent ideas and inexpensive options, ideal for holiday gifts.

4. Social Media Offers

By following your favorite brands and stores on social media, you’ll be the first to know about special offers, and often they run one-day promotions with 10% off or more on certain categories. Get a store reward card too – not a credit card, a discount card where you collect points that you put toward your shopping. That way, even if you’re too late for this year, spend money for holiday gifts will give you a nice reward to use at a later date or even for next year’s holiday gift list.

5. Black Friday & Cyber Monday

Of course, Black Friday in November is a great time to pick up a bargain. If you can’t face the crowds, wait for Cyber Monday a few days later for good online deals. Don’t just rely on these dates though, it’s amazing how many people wait for this particular weekend when there are always deals and offers beforehand.

6. Outlet Shopping

You could also do some outlet shopping. Set aside a day and head out early, to find out where the best designer outlet shopping is near you check out https://www.outletbound.com/outlet-malls.

Let Your Smartphone Work For You

There are some cute Christmas list apps available too, and they’re quick and convenient. Some are so advanced they can build lists of gift ideas, organize them and keep track of what you’ve bought. There are lots of different apps, but as I’m discussing budgeting for the holiday season, I like Gilt on the Go as it helps you find designer brands for less. It also categorizes everything into gifts for men, women, children, the home, pets, etc. This is worth downloading as it has a variety of mobile-exclusive deals too and you can add things to your list that may not be on offer, as soon as they go on offer you will get an instant reminder. Genius! This app is suitable for Android, iPad, and iPhone.

Prioritize the Important Gifts

Always prioritize your shopping. The most important people on your list come first! That could be your partner, your mom, dad, children, brother, sister or best friend. If you know what they want, hunt it out first and try and get the best deal. Note which gifts on your list need early attention and which ones are more generic or flexible that can wait until later.

Give the Gift of Charity

By the same token, if you’d rather save some money this year perhaps speak to your best friend or other friends and agree not to give gifts. Go out for a drink instead or why not plan a day out in the future? If you agree not to do gifts, you’ll save a fortune; you could even agree to both donate to a charity of choice instead – even if it’s just $10. Every little helps when it comes to charitable donations.

Finally, do remember it genuinely doesn’t have to be a stressful time for your finances if you think carefully about organizing your finances beforehand and of course, during shopping for gifts. Don’t lose sight of what you can and can’t afford and if you just can’t stretch that extra $50, don’t. It’s not worth the added aggravation of going into overdraft or not being able to pay a bill in January. Happy shopping!