11 Holiday Budgeting Steps To Take Now So You’re Not in Debt by Christmas

The holidays have a way of sneaking up on many household budgets. Since most of us tend to spend a bit more through the festive season, preparing your finances now can set you up for a less financially stressful holiday season and keep more money in your wallet where it belongs.

Here's how you can prepare for holiday spending now so you save more money in the future.

Purchasing gifts year round when you find something fro friends and family at a reasonable price can be a smart spending strategy. When the holidays roll around, just pull the gifts out and see who's left on your list for any last-minute shopping.

Finding gifts throughout the year is like a fun treasure hunt, and stretching out the purchases over an entire year makes the holidays a bit easier on your budget.

Many stores offer great deals during the holiday season. Stay on top of those deals by using a price tracker tool to monitor the price of a given item. You’ll get an alert when the price drops so you can time your purchase perfectly.

The cost of traveling during the holidays can add up quickly. If possible, book your holiday plans far in advance to shave off some of your costs. For example, booking your plane tickets now might lead to significant savings over a last-minute purchase.

As the holidays inch closer, consider cutting back on other discretionary spending to create some room in your budget to save for the season. For example, if you usually spend $100 each month on eating out and take out, you could tuck those funds away to spend during the holidays.

The right side hustle can make all the difference. When you boost your income, you can set those funds aside to spend during the holiday season. For example, if you pick up an extra $200 by delivering groceries, you can use the money to offset your holiday costs.

Some popular side hustles include delivering food, pet sitting, reselling items online, and renting out your garage. But don’t be afraid to get creative when looking for ways to bring in extra money.

If you struggle to avoid spending your holiday fund, consider setting up a separate savings account dedicated to your holiday spending. In the lead-up to the season, transfer funds into your holiday account whenever you get a chance. Small transfers here and there can add up.

Most of us have more subscriptions than we can really use. In the lead-up to the holiday season, consider canceling some of your unused subscriptions and stashing the cash. When the festivities roll around, you’ll have a bit more cushion in your savings account to cover holiday spending.

Consider setting up a new rule of either limited or no gift-giving among certain family groups or friend groups. 

For example, you could set up a rule that you won’t be giving gifts to your siblings this year and spend the money on your nieces and nephews instead. Or you might start a new tradition of hosting a fun experience with the whole family in lieu of providing physical gifts for everyone.

Many people fall into credit card debt over the holiday season. If you are tempted to swipe your card beyond your means during the season, make a new rule to never go into debt for holiday purchases again. 

Although that might mean cutting back on your spending for the season, it will set your finances up for success in the New Year.

It’s tempting to roll into the holiday season without any budget in mind. But when you go in without a plan, it’s easier to overspend on everything from gifts to holiday travel and themed experiences. 

Instead of diving into the holidays without considering your money situation, take a look at your finances and set a realistic holiday spending limit. Generally, you’ll want to pick a spending limit that doesn’t take away from your other financial goals.

A thoughtful homemade gift doesn’t have to cost a lot of money or anything at all. In the lead-up to the season, spend some time considering what gifts you can make to spend responsibly. 

You could make gifts like baked goods as presents for family and friends. Although it’s an inexpensive gift, people generally appreciate the gesture. If you want to go homemade, it’s generally a good idea to get started early. 

It’s easy to spend more during the holiday season. While it’s fun to get into the spirit, don’t let the season spoil your financial situation. Take steps to stay within your spending limits this holiday season and avoid money mistakes that could have long-term implications for your financial health.