Velocity Community Credit Union

3 Steps To Create A Holiday Budget Each Year

Financial

November 24, 2021

Don't get tangled, get a handle on your holiday budget

During this holiday season, you may be getting your last minute shopping done? Or you’re ready for all the fun but what about next year? Don’t wait to start planning! Now is the time to start working up a holiday budget for the following year so when gift season comes around you are not in a financial panic! Follow these 3 steps to get started and have a successful holiday for years to come.   

1. List all of your expenses

What do you pay for to make your holiday special? From holiday parties to presents, the cost starts to add up. To get started on your holiday budget, write down everything you plan to spend money on and the price of the item. Look over the receipts for the purchases you made this year to make sure you are not forgetting anything. As you look at your list, mark what is of high importance and what you could potentially leave out. Don’t panic, you are not crossing anything off your list yet.    

2. Give yourself a limit

Now, let us switch gears and look at the money you are bringing in. You should base your budget off what you can afford without going into debt. If you do pull money from your savings account, make sure to maintain an emergency fund in case something comes up. Also, make a savings account just for your holiday shopping so you know what money can be used towards your holiday fun. If it looks like you will be in debt based on what you plan to spend, it is time to take a deep breath and cross a couple items off your list.   

3. Track Your Spending

As you begin to purchase the items off your holiday shopping list, make sure to keep track of what you have bought and how much it ended up costing. This way you can see if you were able to save some money or if you need to alter your budget to cover an expense in the future.

As you do your holiday shopping, make sure to look for sales and compare multiple stores pricing. This will help you stay on budget, while finding some great items.    

Source: Balance