Stick to your budget this holiday season
This holiday season, the economy is making it more challenging to create and stick to a budget. So, planning ahead and knowing your spending limits are more important than ever. The Better Business Bureau of Greater Houston and South Texas recommends the following steps for calculating your seasonal budget and sticking to it:
Calculate your debt. Before planning holiday décor for the home, gifts, or parties, look at how much you owe. Pay close attention to any debt that incurs interest. If you have more debt than you can pay off before the holidays, then you’ll want to keep spending to a bare minimum. Remember, there are plenty of inexpensive and even free ways to show friends and family how much you care during the holiday season.
Project your income and expenses. Next, calculate how much money you will earn this holiday season. Review your income from the past three months to calculate an average monthly income. Now, you know how much you have to work with. Before you start setting aside money for holiday fun, make a list of any regular expenses you need to take care of. These might include your utility bills, groceries, gas, and rent or mortgage payments. Don’t forget about any annual fees that might come up around the new year like
HOA fees. Subtract these necessities from your monthly income. With what’s left over and any savings you’ve set aside for the holidays, decide how much you can spend.
Set up a separate holiday budget. Next, make a list of holiday expenses you plan to incur. Include all holidayrelated expenses but divide them into categories, such as decorations, travel costs, holiday parties, decorations, cards, gifts, clothes, professional photos, gift wrap, etc. Add up the cost of each item and subtract it from your holiday budget amount. If you have leftover funds, great. If you are over budget, consider what items you want to prioritize and what items you can modify or cut from your list. For example, your budget might not allow you to host a large holiday bash for your neighborhood, but you may be able to afford an intimate family holiday dinner instead. Keep track of your spending.
Plan for inflation. Increased prices can affect both your plans and your daily expenses. Be sure to factor this into your budget for items like groceries and gas. When working on your holiday budget, know that some gifts will cost more than they did last year, and they may not ever go on sale. Always do a price comparison before you buy.
Take advantage of sales, rewards, and cash-back offers. Take advantage of Black Friday deals, Small Business Saturday sales and Cyber Monday offers but don’t expect the same deep discounts you may have seen in prepandemic years. If you are part of a rewards or loyalty program that offers special discounts or cash-back rewards, save money by using these promos to purchase gifts and decorations.
Bundle your shipping. Free shipping may not be as common as it was last year, so before you click the checkout button, double-check the store’s shipping policies. In some cases, you may be able to get multiple gifts in a single purchase so you can reach the minimum dollar amount and qualify for free shipping.
Avoid panic buying. Whatever you do, don’t panic buy. Yes, many items will be in limited supply, but there is still a plethora of items you can purchase as gifts. It’s never a good idea to pay more for an item than what it’s worth, just because it’s in short supply. In fact, that’s how many people fall victim to hot toy scams and counterfeit product scams each year. Check out companies first on BBBHouston.org.