How To Set Up Your Holiday Budget

It’s never too early to start deciding what your holiday budget will be so that you aren’t fretting over debt in the new year. If you haven’t set up a budget before, the holidays are a perfect place to start. 
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1. Start with what you have. 

Every budget should begin by calculating what you have. This means having a close idea of what income you and your household bring in each month. If your income is irregular, take the average of what you have brought in the last few months.

2. Know what you spend.

If you aren’t aware of where your money goes, it makes being able to create a budget nearly impossible. Get started by saving receipts for a month or two.  Review these along with your bank transactions from the same time period.  Compile a list of expenses. What are you spending your money on? Are there areas where you can cut back?

3. Calculate.

Take your income total and subtract your monthly expenses. These are funds that you can now designate towards the holidays, vacation account etc.

4. Plan!

Now that you know how much you are willing to spend on the upcoming holidays, it’s time to get more specific. When buying gifts for people, set a dollar amount for each person. Also include a limit for the cost of food or traveling this season as well.  Being prepared will help relieve stress.  Knowing your limits will challenge you in creativity and self-control. 
If you need help setting up a savings or holiday account, give us a call so you can be ready for the holiday season!