Holiday Spending Plans: Budgeting Tips for 2024 Season

The holiday season is a fun time of year to create memories with loved ones. Everyone has a generous mindset as they are shopping for gifts and planning food and drinks for upcoming parties. While it’s enjoyable to share this time with friends and family, many people agree that it can also be a strain on finances if you aren’t managing your spending well during this time of year.

One of the most important things you can do for yourself is to plan a budget and stick to it. You want to be able to finish the year without undue debt and stress. A bit of preparation in advance can go a long way to protect your finances and still have an enjoyable holiday season.

Being Realistic About Your Budget

It’s not enough to tell yourself that you are going to try to manage your spending. You need to go into the holiday season with a specific plan for handling your budget. Take a look at your finances, then determine your spending limit in different categories.

Know that you are going to be spending a bit more money during this time of year compared to other seasons. Set aside extra cash for each of the spending categories, and be realistic about how much money you need for each: gifts, travel, food, decorations, etc.

Then, be proactive about tracking your expenses so that you can stick to the limits that you’ve set for yourself.

Stick to Your Shopping List

Another benefit of planning ahead is that it helps you avoid spontaneous purchases. It’s easy to throw a few extra stocking stuffers in the cart when you are at a local store or shopping online. But these small things quickly add up!

Instead of letting yourself move forward with impulse purchases, put together a list of people that you are shopping for and which items you would like to give to them. List gift recipients based on the importance of the relationship that you share with them, then set your spending budget accordingly.

Whenever possible, identify which holiday expenses are necessary vs. optional. Then, look for ways to cut out the unnecessary costs so that you can save your budget for the more important purchases.

Tips for Saving Money on Holiday Shopping

There are several ways that you might be able to reduce your spending on holiday gifts. For example, consider a group gift instead of buying a high-ticket item alone.

Also, look for sales and discounts on the items you are planning to buy. Often, there are holiday sales that will save money overall. Do your shopping during Black Friday or whenever your favorite stores schedule their sales.

Finally, remember that every gift doesn’t have to fit in a box. Consider gifting thoughtful experiences or homemade gifts so you can avoid breaking the bank and still share a personal touch.

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Written by Becki Andrus