It’s just around the corner. Do you have a plan yet? You need a Christmas planner to sort out your budget for the holidays. It will help you get organized – and that will reduce your stress!
Regardless of how you celebrate – secular or religious – many of us will take part in some activities related to this holiday. And that means spending more money. Which means you need to start planning NOW so you don’t spend more than you can afford. Plus, if you have a list in advance, then you’ll be ready to take advantage of the deals right now (think Black Friday and Cyber Monday)!
Want to skip right to the spreadsheet? It’s free for our subscribers:
How much should you budget in your Christmas planner?
How much money should you spend on the holidays? The answer will be different for everyone. But there are some guidelines.
Most experts recommend restraining your spending to between 1% and 1.5% of your gross annual income (that’s your income before taxes).
When I say “experts” I mean: financial planners, accountants, and debt counsellors.
Even though the trend is to spend more, I urge you to consider the amount that’s affordable for you. Check your accounts, do some math, and determine what works for you. You’ll be less stressed and much happier in January!
What should your Christmas budget include?
The holiday season includes a lot of socializing. That might mean family visits, office parties, school pageants, community socials, parades, and many other festivities. In some cases, you might even be hosting these events yourself.
Gifts
When you think of a holiday budget, you often think of gifts first. And, yes, gifts are definitely a part of that budget. But there is a lot more to the Christmas season than just gifts.
Food
Therefore, your budget should consider not just gifts, but also the cost of food. Food that you might prepare yourself but also food you would contribute to other social gatherings.
Decorations
Whether you’re hosting a party yourself or just celebrating the season, you might enjoy decorating your home.
You could focus on the exterior with light displays, wreaths, etc. Or you might work on the interior with decorated trees and other displays.
Or do both!
Parties
And what if you are hosting some of these social events? You’ll probably need to consider invitations, decorations, tableware, linens, candles, etc. This list could go on forever depending upon the type of event!
If you’ll be attending other festivities then you need to budget for tickets, gifts for the host, perhaps some wine, even some new outfits, etc.
Travel
Don’t forget your travel budget. If you’re staying close to home then you’ll still want your planner to include taxi or ride-sharing costs. Beyond that, you may need to book flights (or train or bus tickets) and accommodations.
Charity
Last, but not least, your Christmast planner might budget an amount for charitable donations.
How do you split your budget across all your Christmas needs?
This is the task that most people find the most challenging. Unfortunately, it’s the task that is the most difficult for me to give you advice as there are sooo many variables. But I’ll try.
Here’s how I like to break it down:
1. Do you have small children?
If you have small children then I suggest you focus more of your budget on gifts and decorations. But also activities that immerse them in the fascination of the holiday.
This does not need to be crazy expensive but focus on the entertainment value. You want to tap into that special age of wonderment while they’re still young.
2. Will you need to travel?
If you need to travel then this might be a substantial component of your budget. Especially, if you’ll be flying. Try to book as much as possible in advance when it might be cheaper.
All other expenses will need to be evaluated AFTER the travel has been booked. And, don’t forget to have the gifts shipped directly to the destination address instead of trying to negotiate airport security!
3. Do you have a large extended family?
If you have a large family then you might want to prioritize the food and parties in your budget. As it’s likely there will be many of both.
And, definitely consider a secret santa or white elephant approach to gift-giving. This will ensure that everyone can participate without worrying too much about the cost!
How to track your Christmas planner budget?
When you have a budget planner in place, you still need to track your expenses. Hopefully, you worked through the planning stages thoughtfully and have created a budget that is reasonable.
First of all, you need to ensure that you bring your lists with you when you’re doing any shopping. Don’t rely on your memory.
Then after EVERY purchase from your list, you need to log the actual cost. Regardless of how well you planned, it’s unlikely your plan will match reality.
As you work through your list, you might need to adjust some of your plan numbers. Especially if you go over budget in a few areas.
Keep logging your purchases and adjusting your numbers until everything on your list has been completed.
End of your list
So how’s your list looking?
You started off thinking about how much you should actually budget for the holidays. You may have stayed within the expert recommendations or used your own value.
You worked out the different categories you needed to consider: gifts, food, etc. And then you determined how you would distribute your budget across those categories.
And finally, you focused on tracking your expenses against your plan.
If you reached the end of your list and you were within budget… Congratulations! That’s quite a feat!
What’s more likely is that you had a few surprises along the way. Perhaps you forgot a few items on your list when planning and had to scramble for those. Or you simply didn’t expect the cost to be so high for some areas.
If you had not had your Christmas planner budget, then you likely would have spent far more. Plus, you can re-use this list the following year as a baseline. And that should get you one step closer to budget heaven.
Like This Post? Put a Pin On It!
Did you find this article useful and helpful?
Share this WOWIT post on social media!
Have some suggestions of your own?
Click the Submit Comment button below to let us know!
Want More?
Would you like to learn more about this topic? Or perhaps explore some other topics? Choose from one of the categories below to see more:
Subscribe to our newsletter to have information delivered right to your inbox.
