3 Tips for Holiday Budgeting Success

Budgeting for the holidays can be a challenge. You probably want to give gifts to your loved ones, and you may want to travel and gather with friends and family. That makes it easy to surpass your budget — especially when everyone’s feeling the economic squeeze. 

Luckily, a few holiday budgeting tips can go a long way in knowing how to save money during the holidays. A few tried-and-true tools can help you set a budget and stick to it. These three simple steps can lead to holiday budgeting success. And remember, to stay on top of your finances all year long, reach out to a Farm Bureau professional.

Tip 1: Make a Comprehensive Gift List 

The holiday season should always begin with a task borrowed from Santa Claus: make a list and check it twice! Start the holiday shopping season by jotting down a list of people to whom you want to give a gift. Think about what you’d like to get them and how much you plan to spend. Also think about charitable giving you might customarily do at this time of year, like giving food to a local pantry or toys to a toy drive. This is your starting place.

Your holiday gift-giving budget should include your holiday gifting list along with expected expenses for decorations, clothing, travel and holiday dinners. Try keeping the list on your phone or in the cloud so you can access it easily no matter where you’re shopping. A text document can work, but using a spreadsheet, if you’re handy using them, will make keeping track of this budget even easier since you can organize tables of information and run calculations. 

Then start comparison shopping, keeping track of who sells the items you’re looking for and how much they cost. With so many stores to choose from — both brick-and-mortar and online — keeping track of stores and prices on your list may end up saving you a good amount of money. Finally, make sure to record the amount you ultimately spend to compare it to your original budget. 

2. Use Budget-Friendly Tools to Stay Within Your Spending Limits 

Budgeting for the holidays is pointless if you don’t follow the budget! To stay smart about your spending, start shopping as early as possible so you have time to compare prices and grab the best deals. When you’re shopping on big days like Black Friday or Cyber Monday, consider holiday spending tips that help you get the best deals. And remember that sometimes a gift from the heart doesn’t have to be expensive!

Make use of your favorite stores’ digital tools, too. Email newsletters and apps can offer big savings and coupon codes, whether shopping in-store or online. An app like Rakuten, Honey or ShopSavvy can help you track prices and find deals. And remember, many younger people love thrift shopping, so consider a gift certificate to their favorite secondhand shop or resale site.

3. Track Your Spending 

Holiday shopping adds up quickly! And with so much going on, it’s easy to lose track of your spending. If you prefer to rely on paper, keep your receipts in one place — which also makes returns easy — and write down a running total of what you’ve spent. Seeing that number grow is likely to help you stay on track and keep you from overspending.

If you prefer to use digital tools to track your spending and maintain your holiday budget, use an online budgeting tool or app to digitally document your holiday expenses. Websites and apps can fully integrate with your bank and credit accounts, and they automatically update your expenditures and budget with your transactions. You can designate which purchases are for gifts, and budgeting will be a breeze. That way, you’ll enter the new year knowing you made your loved ones happy and that you stuck to your budget. 

Keep Your Holidays Happy

Welcome the New Year with excitement instead of piles of debt. For more ways to start the year with a strong financial foundation, contact Farm Bureau.