It’s Never Too Late for a Holiday Budget!

As the holiday season nears, many of us begin to feel a mix of excitement and anxiousness, particularly when it comes to budgeting. Gift-giving, elaborate meals, festivities, and travel can all put a strain on our finances.  To help you navigate through this busy time of year, here are some practical budgeting tips to keep your finances in check while also enjoying your holiday season.

1. Set a Holiday Budget. And stick to it!

This may seem simple and redundant, but the holiday season is known to cause people to overspend. Now is the time to start planning and creating a budget. Consider all potential expenses, including gifts, travel, food, entertainment, and more. It’s easiest to break everything down into categories and set a limit for each so you can allocate your funds properly.

2. Get creative with gifts

Gift-giving doesn’t have to break the bank. Consider alternatives such as handmade gifts, experiences, or a “secret Santa” style exchange where each person is only responsible for purchasing a gift for one other person.

3. Take advantage of sales and discounts

The weeks leading up to the holidays often feature a lot of sales and discounts. Take the time to research where you can purchase your gifts or even decorations at a lower price. Planning and researching ahead of time can also help you avoid last-minute shopping (the leading cause of impulse purchases and overspending).

4. Track your expenses

Throughout the holiday season, keep an eye on your spending. Use your bank’s online banking tools, a spreadsheet, or other budgeting apps to track your expenses in real time. This ensures that you won’t be caught off guard by an unexpected cost.

5. Start planning and saving for next year

Once the holiday season comes to an end, it’s always a great idea to start planning for next year. A great solution to saving early is to place money on a Certificate of Deposit (CD). A CD is typically offered with various terms and rates. Try looking for a term that will mature around the time that you start holiday shopping. It’s a safe and easy way to grow your savings, without the effort!

In the end, with some careful planning and creativity, you can enjoy a great holiday season without putting strain on your finances. Set a budget, prioritize your spending, and be mindful of your choices in this upcoming holiday season. So, gather your loved ones, embrace the holiday spirit and let this season be one of joy, connection and smart financial choices. And don’t forget, once this season is over, start preparing for the next!

Midwest Heritage, Member FDIC.