The holiday season is inevitably expensive. We all want to be able to treat our loved ones to something they’ll love or throw a big holiday party and it’s easy for your spending to go overboard. I’m definitely guilty of that. So this year I’ve created a budget to make sure I only spend on what I need and only as much as I can. Today I’m going to walk you through the steps I used to create my budget. Hope you find this helpful and get ready for lots more holiday blog posts coming your way!
1. Make a list of holiday expenses
The first step of creating a budget is figuring out who and what you’re planning on spending money on. Make a list of who you’ll be buying presents for, decorations, what food and drinks you’ll need to buy, etc etc. Are you planning on hosting a holiday party? Are there any secret santas to shop for? Dig deep and think of everything you can!
2. Figure out how much money you can spend
The next obvious step - how much money can you spend total? Start going through your finances and figure out how much money you already have to spend and how much money you expect to be coming in that you can spend over the holiday season.
3. Prioritize what you’re spending money on
Now, go back to your original list and start figuring out what is most important to you. Who do you want to splurge on for gifts and who will be fine with something smaller? What kind of decorations do you still need the purchase? Put your list in order of importance so you can have a visual of what is most and least important.
4. Assign certain amounts of money to each expense
Now it’s time to start dishing out the cash. Start giving amounts to each item. Make sure you do this in pencil that way you can move your money around if you’re not ending up within your budget. Try to give yourself some wiggle room too when things inevitably don’t go quite as planned.
5. Track Your Spending
This is most important! What is the use of a budget if you don’t pay attention to how much you’re spending? Make a document on your phone or computer where you can keep track of how much money you’re spending to make sure you stay on track. If you go over for one purchase, try to rearrange the rest of your budget so you still don’t overspend.