Whether you have gifts to buy, meals to prepare or events to host, the Holidays can be an expensive time of year for many. The end of the year may seem far away, but in terms of planning and shopping for these various things, the holidays can come up quicker than expected. So now is the time to start preparing! One of the best ways to ensure you have allocated enough money to your holiday spending is to establish a budget. A budget is a plan that you make to spend money on certain expenses and can make sure you have enough money for everything. Having a specific holiday budget will help you to set aside the money you need now for holiday spending and focus on cutting back spending in other areas. Here are a few tips to establishing a holiday budget:
- Look at your total income and your total expenses.
- Identify areas that are not fixed expenses. Fixed expenses are amounts you cannot change, such as your mortgage or your school expenses. Areas that are not fixed could be eating out, purchasing clothing and entertainment.
- Establish an amount you want to spend for the holidays. This can include food, gifts and other entertaining expenses.
- Pull money from those areas that are not fixed expenses to create your holiday budget.
- Stick to your budget and only spend within your limits.
- Some people will take on extra tasks or work more hours to increase their income for holiday spending.
A budget is often a challenging task for many. Don’t become intimidated by it. There are many resources available online and through apps that can help you establish a budget. Stay tuned for ways to make the most out of your holiday budget.