Yusra3
VIP Contributor
The holidays may be filled with fun, family and cheer but can also derail your budget and finances without some discipline. Avoid overspending this season by setting financial boundaries for yourself.
Step 1: Set Your Holiday Budget
Determine a total spending amount for gifts, food, travel, decor and other holiday costs. Be realistic by reviewing prior years. Allow some cushion but stick to the defined budget to control creeping costs.
Step 2: Make a Gift List and Set Limits
Create your gift list and assign a maximum dollar amount to spend on each person to avoid going overboard on anyone. Young children and extended family/friends may warrant lower caps. Share gift exchanges can impose built-in limits.
Step 3: Use Cash Envelopes
Use the envelope budgeting method where you put pre-allocated cash for specific holiday expenses in labeled envelopes. When the cash is gone, you’re done spending on that category. It creates clear visual limits.
Step 4: Travel and Entertain Economically
For holiday travel and hosting, look for discounts, loyalty rewards, potlucks vs. elaborately catered events, homemade gifts and economical activities. Getting creative pays off.
Step 5: Avoid Impulse Purchases
Stick to your lists and budgets. Don’t buy extras “because it’s a great deal”. Before any spontaneous spend, wait 24 hours and ask if it fits your budget and goals.
By defining and enforcing financial boundaries, you can keep spending relatively in check despite the many temptations of the season. Focus on non-monetary ways to celebrate, connect and enjoy special times with loved ones.
Step 1: Set Your Holiday Budget
Determine a total spending amount for gifts, food, travel, decor and other holiday costs. Be realistic by reviewing prior years. Allow some cushion but stick to the defined budget to control creeping costs.
Step 2: Make a Gift List and Set Limits
Create your gift list and assign a maximum dollar amount to spend on each person to avoid going overboard on anyone. Young children and extended family/friends may warrant lower caps. Share gift exchanges can impose built-in limits.
Step 3: Use Cash Envelopes
Use the envelope budgeting method where you put pre-allocated cash for specific holiday expenses in labeled envelopes. When the cash is gone, you’re done spending on that category. It creates clear visual limits.
Step 4: Travel and Entertain Economically
For holiday travel and hosting, look for discounts, loyalty rewards, potlucks vs. elaborately catered events, homemade gifts and economical activities. Getting creative pays off.
Step 5: Avoid Impulse Purchases
Stick to your lists and budgets. Don’t buy extras “because it’s a great deal”. Before any spontaneous spend, wait 24 hours and ask if it fits your budget and goals.
By defining and enforcing financial boundaries, you can keep spending relatively in check despite the many temptations of the season. Focus on non-monetary ways to celebrate, connect and enjoy special times with loved ones.
