Merry Budgeting
A recent survey showed that consumers plan to spend an average of $801 on gifts this holiday season. That’s slightly down from the $864 in 2012, but it’s still quite steep– especially considering that the median income in the US is roughly $51,000, or $980 before taxes!
Whether you fall above or below that number, it’s a good idea to have a solid holiday budget in place before you venture to the stores or start shopping online. Here are some easy tips to make sure your budget stays off Santa’s naughty list:
Look Back – When budgeting, take a glance at last year’s spending to make sure the amounts you set aside are manageable and still relevant. If you spent $200 to host Christmas Eve dinner for your entire family, you know you probably should set aside a similar amount. However, if it’s your sister’s turn this year, you may have a little extra to allocate elsewhere.
I use a simple Excel spreadsheet, which I copy every year so that it’s easy to compare.
Make a list and check it twice – I bet many of you already are pretty good about making lists for who’s getting what, but do you check it twice? You may intend to get your 5-year old a LeapFrog LeapPad Ultra, but when you see a Rainbow Loom on sale and make an impulse purchase, do you adjust your budget? Or does she just end up getting extra presents you didn’t plan for?
That might not seem to be a huge problem, but if you do this repeatedly for everyone on your list, you could end up spending a lot more than you intended!
The best budgets are flexible and leave room for re-allocating dollars where needed. But that doesn’t happen automatically. Keep this year’s holiday budget on track by checking your lists and adjusting the big picture after each shopping trip.
It’s not just the gifts that cost money – Keep in mind other expenses besides gift-giving. Some other categories you may want to plan for include: charitable giving, holiday tipping, holiday cards, hostess gifts, decoration, additional groceries for guests and entertaining, additional childcare and possibly new outfits, haircuts, etc. as well if you have a lot of holiday parties or events to attend.
What’s your motivation? – Don’t start a budget unless you are very clear about why you are budgeting in the first place. There has to be a compelling, motivating reason. Often our reasons are negative and fear-based. You fear opening up your credit card bill and feeling that pang of money anxiety and regret in January.
That’s totally naturally and a great place to start. But is there a more positive reason that’s equally motivating? Sometimes the difference is slight and often relates to the self-talk that’s in our heads. Instead of thinking of budgeting in terms of making sacrifices, think of it as terms of making choices. Instead of anticipating your credit card bill with dread, imagine opening it up with clarity and with money readily available in your account to pay off the balance.
We are all so bombarded with ads encouraging us to spend, spend, spend and let’s face it, it’s fun to give gifts to the people we love. It not only makes us feel great to be generous and freely give our money; it’s actually essential for a healthy money mindset. If you cling to our money from a fear-based, scarcity mentality, energy is blocked and money may have difficulty flowing in as well.
But true generosity does not hurt us. Any holiday budget will be successful if it comes from a place of true generosity, knowing that you are living within your means and being okay with whatever that is.
Merry Budgeting!
Whether you fall above or below that number, it’s a good idea to have a solid holiday budget in place before you venture to the stores or start shopping online. Here are some easy tips to make sure your budget stays off Santa’s naughty list:
Look Back – When budgeting, take a glance at last year’s spending to make sure the amounts you set aside are manageable and still relevant. If you spent $200 to host Christmas Eve dinner for your entire family, you know you probably should set aside a similar amount. However, if it’s your sister’s turn this year, you may have a little extra to allocate elsewhere.
I use a simple Excel spreadsheet, which I copy every year so that it’s easy to compare.
Make a list and check it twice – I bet many of you already are pretty good about making lists for who’s getting what, but do you check it twice? You may intend to get your 5-year old a LeapFrog LeapPad Ultra, but when you see a Rainbow Loom on sale and make an impulse purchase, do you adjust your budget? Or does she just end up getting extra presents you didn’t plan for?
That might not seem to be a huge problem, but if you do this repeatedly for everyone on your list, you could end up spending a lot more than you intended!
The best budgets are flexible and leave room for re-allocating dollars where needed. But that doesn’t happen automatically. Keep this year’s holiday budget on track by checking your lists and adjusting the big picture after each shopping trip.
It’s not just the gifts that cost money – Keep in mind other expenses besides gift-giving. Some other categories you may want to plan for include: charitable giving, holiday tipping, holiday cards, hostess gifts, decoration, additional groceries for guests and entertaining, additional childcare and possibly new outfits, haircuts, etc. as well if you have a lot of holiday parties or events to attend.
What’s your motivation? – Don’t start a budget unless you are very clear about why you are budgeting in the first place. There has to be a compelling, motivating reason. Often our reasons are negative and fear-based. You fear opening up your credit card bill and feeling that pang of money anxiety and regret in January.
That’s totally naturally and a great place to start. But is there a more positive reason that’s equally motivating? Sometimes the difference is slight and often relates to the self-talk that’s in our heads. Instead of thinking of budgeting in terms of making sacrifices, think of it as terms of making choices. Instead of anticipating your credit card bill with dread, imagine opening it up with clarity and with money readily available in your account to pay off the balance.
We are all so bombarded with ads encouraging us to spend, spend, spend and let’s face it, it’s fun to give gifts to the people we love. It not only makes us feel great to be generous and freely give our money; it’s actually essential for a healthy money mindset. If you cling to our money from a fear-based, scarcity mentality, energy is blocked and money may have difficulty flowing in as well.
But true generosity does not hurt us. Any holiday budget will be successful if it comes from a place of true generosity, knowing that you are living within your means and being okay with whatever that is.
Merry Budgeting!