Sticking to a Holiday Budget

The holiday season is right around the corner, and with it comes the temptation to indulge and overspend. Protect yourself from “Buyer’s Remorse” and financial setbacks by planning ahead.  Have you ever bought something just because you saw it on sale and then later needed that money for something more important?  Yes, it happens to us all. Here are some good tips to help you enjoy the shopping experience while maintaining a well-balanced household budget.

The first step to sticking to a holiday budget is to MAKE ONE!  A holiday budget is created in the same way a household budget is created.  See previous blog articles “Value of A Budget” and “Tips for the Budget” for details. 

It is important to pay all of your bills FIRST before determining available funds for holiday spending. Never put yourself or your family in the position to sacrifice a stable home environment tomorrow for shinny presents today.  This includes racking up large credit card debt.

Once you identify how much money is available for spending, the second step is identifying who you are celebrating.  I recommend limiting your celebration to your children, immediate family, and those close to you that help you during hard times.  Babysitters, close friends, business clients, mentors, and pastors are good examples of people that help during hard times. Going beyond this recommendation leads to excessive giving and may extend you beyond your budget.  Charitable giving is acceptable as long as you stay within the budget. There are many noteworthy organizations and the giving may be tax-deductible.

Who are you celebrating this year?

The third step is to take the amount of money available for spending and allocate a dollar amount to each person/organization on your list.  For example, if you have $100 and there are five people on your list, each person can get $20 or you can vary the amounts where one person gets $5 and other gets $15.  You decide on who gets what amount as long as the total does not exceed the dedicated amount.

The final step is to purchase and/or make gifts for each person, keeping costs at or below the assigned amount. Don’t be afraid to get creative!  When possible, use arts and craft projects to get your children involved.  No one can resist a macaroni necklace or hand painted Christmas ornament from “Nannas Little Darling.” 

Create a shopping list by researching stores in advanced so you can get in and get out. Don’t get distracted by sales signage and promotions.  These ads prey on your shopping adrenaline, leading to impulse buys that may result in overspending and “Buyer’s Remorse.”  If it is not on the list, you must dismiss!


What are your holiday spending plans? Share in the comments below! Have a question? Contact Dr. GNP for budgeting resources and tips! Remember, stay connected, stay engaged and stay Titus II Living!

DR. GNP
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