Budgeting for Christmas sounds like a problem for future you, but that’s not really true. It’s never too early (or too late!) to budget for Christmas so that you can save money, enjoy the holiday season, and holiday spending without the stress. Want to save this post? Enter your email below and get it sent straight to your inbox. Plus, I’ll send you time- and money-saving tips every week!
It seems like common sense. Why suffer through financial stress at the holidays when there’s an easy way to avoid it? My 23-year-old son and I were discussing this concept recently. He had attended a smart money seminar at church where the speaker joked about the one expense people know is on the calendar every single year: December 25. Why are people surprised when the Christmas season and its expenses roll around? It’s the exact same day every year! We know it’s coming, and yet the cost of gift exchanges and green bean casseroles seems to sink us every year. Let’s be different this year!
Make this Year Different with a Christmas Budget
This year, let’s be purposeful in our Christmas spending. Let’s not deal with guilt, panic, or a scary January bill. Give yourself permission to spend freely. But, how? The year is half over already. It’s already too late. Too late? You’re still gonna spend money at the holidays, aren’t you? Well, plan for it today. Save for it. Budget for it. It’s never too early to start budgeting for Christmas!
Why Start Budgeting for Christmas
When Bryan and I first started getting our finances in order, Christmas was a sticky spot for me. Don’t get me wrong. I absolutely LOVE to celebrate the holiday and give gifts and throw parties and bake goodies! But back in 2009, we were actively trying to build our emergency fund so it felt weird to be spending extra money for Christmas, money that could have gone to savings. The mom guilt was off the charts. A wise friend suggested that I start earmarking money specifically for Christmas. Huh? Something so simple had really not occurred to me, at least not in a practical way. That year we started our first sinking fund, a practice that has helped us to live debt-free and still account for the occasional big expense.
By budgeting for Christmas, making space in our spending to indulge in the fun and frivolity of the holidays, I gave myself permission to enjoy it, albeit in a frugal way. I’m sure each of us has different burdens to bear when it comes to Christmas spending. Maybe times are tough, and you are barely making ends meet during a regular month – forget about having extra at the holidays. Perhaps you compare the abundance your family enjoys with the lack in other people’s lives and you have a hard time buying more. Or maybe you have no qualms whatsoever about spending, spending, spending, regardless of whose money it is — until the January bills start rolling in.
How to Make a Christmas Budget
Luckily, it’s not hard to make a Christmas budget. And it’s also not too late. While it would be ideal to be saving all year long for the holidays, there’s no better time than the present. So let’s do this thing.
1. Make a List of Expenses
Generate a list of all the extras you anticipate coming up in the next few months. This could be family gifts, friend gifts, new clothes, Christmas cards, decorations, special Christmas activities, etc. Usually, our December celebrations follow a certain pattern. We can look back and see what we did, where we went, what we spent, and then plan for it next time by setting aside a portion of that money now. If you don’t keep a lot of records, scroll through your calendar, camera roll, and bank statements from last November and December. You can likely recreate some expected expenses. What do you usually spend money on during the Christmas season?
2. Check Your List Again and Prioritize
Go through your list and prioritize the different expenses you foresee this holiday season. Ask yourself, “What’s most important to me?” and “What can I cut back on?” Be honest with yourself. You might be surprised at how much you can save by cutting back on non-essential expenses.
3. Set a Budget and Start Saving
Once you have your list and have prioritized your expenses, set a budget and start saving. You can set up a separate savings account specifically for Christmas expenses. Make sure to contribute to it regularly, whether it’s weekly, biweekly, or monthly. The key is to make it a habit.
4. Review and Adjust
As the holiday season approaches, review your budget and adjust as needed. You might need to make some changes based on unexpected expenses or changes in your financial situation. The goal is to stay on track and enjoy the holiday season without financial stress.
Benefits of Budgeting for Christmas
Budgeting for Christmas has many benefits, including:
- Reducing financial stress and anxiety
- Saving money and creating a safety net
- Prioritizing expenses and making conscious spending decisions
- Enjoying the holiday season without guilt or worry
- Building a habit of saving and planning for the future
Make This Holiday Season Different
This year, make a commitment to budget for Christmas and enjoy the holiday season stress-free. It’s never too early or too late to start planning and saving. With a little bit of effort and intentionality, you can create a Christmas budget that works for you and your family. Don’t let financial stress ruin the holiday season. Take control of your finances and make this year different. Give yourself permission to spend freely and enjoy the holiday season with peace of mind.
In conclusion, budgeting for Christmas is a simple and effective way to reduce financial stress and anxiety during the holiday season. By following these steps and making a commitment to budget for Christmas, you can enjoy the holiday season without guilt or worry. Don’t wait until the last minute to start planning and saving. Start today and make this holiday season different.
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