Tips for Committing to Budgeting During the Holidays

It can be so tempting to buy out the store for your cute little nephew or for your sister you don’t see often enough but you need to set serious limits for yourself during the holidays. Otherwise, you will likely overspend throughout November and December, leaving you deeply in debt come the new year. While the economy may still seem shaky at best, consumers may still be quick to ditch their shopping lists in favor of sprees.

Here is how to commit to a budget and start a new year in a better financial light:

Create a Master Grocery List
Since Thanksgiving and Christmas are both cooking holidays, it would benefit you to create one master shopping list of the essentials you will need for both celebrations. Estimate how much you will need to buy and shop in bulk for pantry items that will last. Put some money aside to make one shopping trip for the essentials for both holidays and properly store or freeze what you can use for the next feast. Once your food needs are out of the way, you’ll be better able to budget your money for gifts and other things. For perishable items you will need to buy for each meal,  ask family and friends who are dining with you to each contribute an item.

Set A Gift Budget
If you stick with a regular budget for your household, it should be relatively simple to create a sub-budget for your holiday gift list. Go online or pick up sales circulars to find gift ideas and prices. Write down every person you need to buy for as well as a general idea of the cost. Prioritize your list in order of importance (family, friends, co-workers, neighbors, ect). When you run out of money, substitute gifts from the heart like homemade cookies or handmade decorations for those you aren’t as close to. It’s a good bet that if you create and work off a list, you’ll be able to stretch your money much farther and you’ll get more creative with sticking to your gift budget.

Forget the Madness
Shopping during Black Friday or during other over-hyped shopping adventures can leave you wide open for impulse buys that will blow your budget. Stick with your list and do enough research at home to know where to go and what to get. Don’t fall victim to Midnight Madness sales that likely will leave you just plain mad.

Don’t Feel Guilty
There are a lot of people across the nation that had to tone down their holiday celebration due to money concerns. Once you have worked out a budgeting list, you need to acknowledge that you just don’t have the money to get something for everyone. There is nothing to feel guilty about. It may be the perfect time to start new traditions instead of feeling regret. Perhaps you can make a new tradition of only buying gifts for the children of the family and not the adults. You may even want to try to start a potluck holiday dinner where everyone brings something and the burden and cost of the meal doesn’t rest entirely on your shoulders.