The holidays are such a wonderful time of year! Family is together, people have a bit extra cheer, and friends get together for tons of parties! This is one of our families favorite times, but it can also be one of the priciest. Here are my top three tips for staying in budget and getting to January without going bankrupt.
Set a Budget and Stick to it
Budgeting for the holidays is a vital part of making sure we do not overspend. From little decorations that we must have, to the friends that we need last-minute gifts for, there are so many unexpected expenses that not having a budget is a sure way to sink. Usually we set out a budget for the holidays well in advice (like September advanced). We can pretty easily predict how much we will have to spend, and can start saving a little extra as needed.
When you are sitting down to do your holiday budgeting, first, write out a list of everyone who you will be buying gifts for and know how much you can spend total. Use 70% of the total holiday expenses for gifts, 10% for decorations, 10% to donation (trust me, this will end up being one of the best parts of your budgeting), and 10% for unexpected gifts needed or last minute add ons. It is always good to have a buffer zone. The goal is to not need to take money out of places that you usually spend it, like groceries. But, if you need to, plan out how much you will need to take out in December to be in the black come January. Then, divide that up between the weeks so you know exactly how much you need to save and how much you can spend.
Make sure to keep all recites along with a log of how much you have spent. Some people can keep a great log in their heads. If you (and I) are not these crazy talented folk, set up a separate "Christmas" note in something like Evernote and jot down how much you spent after leaving a store. Having to write down your spending can also work the same as writing down what you eat. Writing it down encourages less overspending and eating!
Use Those Wonderful Trial Perdiods
This is a great time to use up some of those fantastic free trial periods companies shell out. One of my favorites is Amazon's Prime trial. For about 2 weeks, you are able to try out Amazon Prime for free. This could, literally, be a wallet saver if you do a lot of online shopping. Free 2-day shipping on prime products and free books and videos through Amazon. Just make sure you are prepared to continue the membership if you fall in love (cough, cough, me) for $79 per year, or set an alert in your phone or calendar a few days in advance of the trial ending so you can cancel. No need to incur an unwanted charge if you won't use it the rest of the year.
If you are more of the store shopper, start well in advance. This is not the greatest tip come December, but it is good all the same! Last minute shopping will usually cost you more than a few minutes of stress. When people last minute shop, they tend to pick the first thing they see and overspend. By taking your time and starting in advance (and not on a Saturday), you will save some stress and, maybe, some money! Plus, there will be more time to pick the perfect gift that your special someone will love.
Shop Dollar Tree
Dollar Tree and, sometimes, Dollar General are my favorite places to get Christmas decorations. A good portion of our tree is from the dollar store and no one is the wiser. They have surprisingly nice things that can either complete a tree or be added as the "filler" for cheap. Goodness, I just bought a tube of gold sparkly balls for $1! That seriously cannot be beat. Dollar stores are a great way to shop for the little extra pieces. There is no short supply of simple wreaths that can easily be added to for a beautiful and hand styled design, plus lots of cute little extras (got some fantastic silver snow flake chargers last year).
This extra saving will also leave more money for the really pretty Crate and Barrel and Pottery Barn decorations that are like 20x the price!
Side note, Target also has some really cute ornaments this year!