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While the holidays are meant to be filled with joy, they can also come with financial stress. Creating a simple budget that you’ll actually want to follow can help you ring in the holidays without breaking the bank, so you can stay focused on what matters most.
How to Set a Holiday Budget You’ll Want to Follow
As a kid, the holidays feel magical. Between singing carols, eating too many cookies and playing games with family, it can feel like a snow globe come to life. But as an adult, when the reality of buying gifts, throwing parties and traveling comes with a hefty price tag, the magic can lose a bit of its luster.
If you want to recapture the magic of the holidays, consider setting a holiday budget. While budgets and magic might not seem like they go together, planning your holiday spending can help you focus on family, connection and the reason for the season instead of fretting over your finances.
Here are three simple steps for setting a holiday budget you can actually stick to:
Make a list, check it twice
If you want to make sure you know where your money is going this holiday season, you have to tell it where to go. Otherwise, it’s easy to get caught up in the moment and overspend on things you don’t need – or want.
Think through all the ways you spend money over the holidays. This might include:
Then decide how much you want to spend in each category – including writing down every person you plan to shop for and how much you want to spend on each person. One popular recommendation is to spend no more than 1-2% of your yearly income on gifts. Whatever your budget, make sure it fits your situation and financial goals.
To help plan for unexpected expenses, consider padding your budget by 25%. If, for example, you want to spend $1,000, plan to spend $750. That way you have a $250 cushion for costs you don’t anticipate.
Slip some savings under the tree
Once you know how much you want to spend and where you plan to spend it, think about ways you can still accomplish your goals without spending money, such as:
Want to stretch your holiday budget? Discover three smart ways your debit card can help you save money this season – without sacrificing the joy of giving.
Find out
Remember your reason for the season
The most important step in setting a holiday budget you’ll actually stick to is remembering why you want a budget in the first place. Doing this can give you a little more impulse control when the urge to splurge is strong. It can also help you deal with feelings of guilt if you get an unexpected gift from someone you didn’t plan to buy for or if someone spends more on you than you spent on them.
To keep your “why” top of mind, write it down and save it where you’ll see it often. It can help you prioritize what matters most.
While a budget may not sparkle, it can light the way to a more joyful, stress-free holiday. And by planning ahead, you can give yourself the gift of presence – with more peace, connection and meaning this holiday season.
Make everyday purchases easy! Explore all of the benefits waiting for you with Gate City Bank debit cards, such as custom designs, great rewards, easy security controls and more.
Want to stretch your holiday budget? Use your Gate City Bank debit card instead of a credit card to avoid fees, earn rewards and remember your financial goals.
Whether you’re trying to stick to a budget or grow your savings, explore helpful resources designed to meet your goals – and meet you wherever you are.
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