The holidays are just around the corner, which means the extra expenses that come along with the season’s celebrations will start adding up before you know it. It’s natural to want to treat yourself and your loved ones, but you still need to be financially responsible, so you don’t blow your budget and pay the price well into the new year.
Keeping the bigger financial picture in mind during the holidays and throughout the year is essential to your financial stability and success. Financial independence and confidence are much more desirable than extravagant holiday spending. So if you want to enjoy the holidays this year and still manage your financial goals for the coming year, you’ll need to create a holiday budget and stick to it.
Here’s how to budget for the holidays and enjoy the most wonderful time of the year without breaking the bank.
Make a List and Check it Twice
If you’ve ever experienced a holiday spending hangover in January, you know it’s easy to overspend. Even if you budgeted for big-ticket items, your credit card bill might reveal that it was the frills that put you over the top. From refreshing your seasonal decor on a whim to picking up “just one more” stocking stuffer with every trip to the store, costs can get out of hand quickly.
Make a list of everything you’ll need and want, estimate how much you are willing to spend, and make adjustments to your budget accordingly. Talk it over with your family, look over bills from previous years, and be sure to add plenty of padding for flexibility and unexpected expenses.
Feasts and Festivities
Whether entertaining or simply showing up, you’ll want to make room in your budget for expenses related to the social occasions that fill the season with laughter and cheer. If you will be the party-giver, set the tone and corresponding budget now; from elegant dinner parties to the most casual affairs, expenses can grow exorbitant if unchecked.
Make a note of all of the events and possibilities on your calendar and decide what each will conceivably cost you. Don’t forget to include expenses such as your party attire and hostess gifts.
Stay tuned next week for more holiday budgeting tips.
John A. Frisch, CPA/PFS, CFP®, AIF®, PPC™ founded Alliant Wealth Advisors in 1995 and has over 30 years of experience as a financial professional. In his free time, he’s an avid long-distance runner, a sport that requires discipline, patience, and vision. John applies these same skills to his professional pursuits: He helps families and retirement plan sponsors adopt a patient, disciplined approach to overcoming financial challenges and reaching their distant goals along a clear path. Learn more at www.alliantwealth.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.
