The Holiday season is almost here, which means getting out the decorations, colder weather, travel plans, and of course gifts! With most of those things, there usually is also an added expense, and oftentimes it can sneak up on you. That is why planning your spending for the holidays can help it feel less overwhelming and be a joyful season for all, so we have some tips on how to help your budget for the Holidays.
1. Set Holiday Spending Limits
Give your credit card and your mind a holiday by limiting what you buy to what can safely come out of your bank account. Use this opportunity to create or get your budget into fighting shape and use it to decide how much money you can afford to spend.
Holiday budgeting is a way to set limits on your purchases and still enjoy the season. It can help to set up a budget and limits that you will stick to—without caving in and racking up the credit.
The money you can reasonably spend on gifts is the money that is not going to bills. That said, if you want to have a little more to spend, this does not have to be just the money left over at the end of the month. You can also use the money that you would normally spend elsewhere, such as on your morning latte. If you started saving early, especially with Cobalt CU’s Holiday Club accounts, that money can be accessed for these purchases. If you save a little overtime, it will not feel like there is such a big hit to your accounts this time of year.
Make sure when you are budgeting for this time of year, you do not just include gifts, but also include any holiday themed activities that you will participate in this season.
2. Make Your Own 'Naughty or Nice' List
Santa must buy presents for the whole world, but you do not. Cut down on the number of people on your present list. This can be done by the closeness of the relationship; create your spheres of influence and you can cut down from there.
Then, bake some cookies to give to all the people you snipped from your original gift list. This will ensure you spread the holiday cheer and keep you from looking like Scrooge.
3. Give the Gift of Your Time
Mom and dad (or other far-away family and friends) might love nothing more than a visit from you. Another idea? Write up a "free night of babysitting" card for your family members with young children, or "good for a home-cooked meal" certificate for your widowed aunt that can be used when the time is right. This is also a great gift idea to lower the budget, but also be more personalized than another item.
4. Be Realistic About Your Budget
Your older brother paid off his student loans five years ago, and he always gets you the fanciest presents. However, if you are in a different place in your financial life, you should not feel pressure to follow suit.
If you have any doubts as to whether those on your list will appreciate the less expensive presents you buy them, think back to what your friends and family gave to you when their budgets were tighter. Remember it is the thought that counts, not the item; a gift does not define a relationship.
5. Provide Personalized Gifts
A small, thoughtful gift is worth more than an expensive gift that someone may never use. Avoid impulses to shop at trendy stores and start the holiday by taking a moment to think about what those on your list could really use or even what you would enjoy doing together.
6. Save up for expensive presents
Putting money aside for big-ticket items can prevent you from depleting your accounts or going into debt during the holidays.
One of the surest ways to overspend is to wait until the last minute and buy all your gifts in a rush. Not only are you more likely to overspend, but it also makes an already stressful time of the year even more so. Even if you did not this year, start thinking now about using a Holiday Club account for next year, you can even set up your debit card to Round Up to save the difference into this account.
These are just a few ideas to help you budget for the holidays and go into the season financially prepared.
