Holiday Budget Spending Plan – WOMAN MARKET READY

Every year I faithfully set out to create a realistic holiday spending budget. I get right to the task of forecasting how much quality product I can get for the least amount of money. I file, save as a new spreadsheet and delete last year’s data. I look at my list to see who has been naughty or nice so I can apportion funds accordingly (I don’t really do that). 😉

Who's Been Naughty or Nice? — Who’s Been Naughty or Nice?

Finally, I get to the arduous task of setting up the actual budget. In the past I have based this amount on many different formulas to come up with that “target” budget amount:

A per person monetary allotment i.e. $100 per person.
Bonuses received.
3 pay periods based on a bi-weekly pay schedule.
An arbitrary amount that sounded good i.e. $1500.
Saving a monetary amount weekly or monthly throughout the year.

Regardless of what number I come up with, my goal is always the same: DO NOT GO INTO DEBT!

Here are the 5 ways I have successfully stayed out of debt every holiday season to date:

Set up a realistic, generous budget right from the start, it is the best way to set yourself up for success. If you set your budget too low and run out of money too early you might be tempted to turn to credit cards to fund the discrepancies. Keep your eye on the goal ⇑.
Track your purchases as they occur or minimum, weekly. Believe me this is key to staying on track and budget. Set aside a set time or chunk of time every day/week to input this valuable data. At the minimum keep a notebook or piece of paper in your wallet or pocketbook with your budget amount and minus off your purchases as you are waiting in line at the store. Again it is easy to get off track if you don’t have a visual reminder with you.
Shop early. All through out the year I add items to my watch or wish list in anticipation of costs going up during the holiday season. For example, my son wants an Xbox so I started shopping for it as early as when he mentioned he wanted one. I have done this many times throughout the years and find I usually save around 25% more than I would if I had waited until the end of November beginning of December to purchase the item as prices start to rise—supply and demand.
Use reward dollars. I have also done this many times throughout the years which has saved me tons of money. I have used credit card rewards in the form of points towards purchases. I have used my cash back reward from Costco to make holiday purchases. I have used actual cash from another rewards program to add to my holiday spending budget. “What’s in your wallet?” Take a look, could be holiday savings!
Implement a Yankee Swap. I have done this for years with my girlfriends. We gather after the holidays to get together and extend the holiday season. You only have to buy 1 gift and everyone ends up getting one. I know of many families who do this as well and it works out great.

Regardless of how you do your tracking: Excel Spreadsheets; Mac Numbers Spreadsheets; Good Ol’ Pen & Paper, the most important thing is that you just do it. I don’t know of to many people that like to start the New Year in debt and with a little prep and tracking, you don’t have to. Maybe you will even come out under budget! 😀 Happy Tracking & Happy Holidays!

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Kimberly

Author; Blogger; Self-Proclaimed “Woman” of all trades and Self-Proclaimed “Master” of some! AFAA Certified Group Aerobics Instructor since 1998; MA Licensed Real Estate Agent since 1995; former Certified Financial Counselor and Passionate Advocator of Financial Education for Women. Tech Geek; Home Cook & Most Importantly, Mother of 3, my #1 Reason for Living!!!