December is one of my favorite months – the holidays are here and I feel like everyone seems to be in good spirits. One thing that can kill the mood of the season is financial trouble. We should all try to remember what this time of year is all about, but let’s be honest… everyone is likely to worry about their money and spending at some point. To ease that stress, why not stick to a budget? Planning your spending and sticking to a plan now will set you up for financial success in the new year. Check out a few of these tips to get you started…
1. Plan ahead. This time of years brings with it celebrations, gifts, and time with friends and family. Sometimes these things mean an increase in spending. Add a line to your monthly budget throughout the year to make up for extra expenses that roll around with the holidays. Saving smaller amounts over time won’t leave you broke each month, and you’ll have an extra cushion for end-of-the-year festivities.
2. Stick to your typical budget. If you plan accordingly, your November and December budgets shouldn’t be affected. Keep within what you would normally spend for the month to keep yourself on track. Don’t use the holidays as an excuse to splurge, because you’ll pay for it later.
3. Prioritize. Know your limits and where you want your funds to go. Is it important to you to be able to give more gifts, or would you rather save your money for going out with friends you haven’t seen in a while? If you’re able to fit everything into your holiday budget, great! If not, be aware of what and how you’re spending. *Helpful hint: Make this easier by spending cash instead of using a card. Use envelopes to divide up what you’d like to use it for, and only use the contents of that envelope when it’s time.
4. Skip the gifts. Giving extravagant, expensive gifts is hardly necessary – they say it’s the thought that counts, right? Consider other options this year, no money required, such as volunteering your time or skills to help a friend, family member, or someone in need. It might be much more appreciated! If you prefer to give just a little something, consider inexpensive homemade gifts that are unique and thoughtful.
5. Pick up some extra work. Still having a hard time making some spare room in your budget? Find a way to temporarily increase your income, even if it’s just something minor. This is the perfect time to pick up odd jobs that not only will earn you a little extra cash, but will often help someone out in exchange. Shovel someone’s sidewalk, walk the neighbor’s dog, or wrap Christmas gifts for a family member. A couple dollars here and there can add up quickly.
Do you have a hard time sticking to your budget around the holidays? What do you do to keep yourself on track?
