And just like that, the weather is getting cooler, and autumn is ending. Soon the holiday season will be upon us, and we will be thinking about gifts, get-togethers, and holiday trips. It can be tempting to impulse shop or spend out of budget, but with a little planning, we can save money while still joining in the holiday cheer. Read on for budgeting tips!
Start planning early
Give yourself time to prep your budget. Ask yourself what a realistic budget is and look at how much you spent last year, for reference. Holiday shopping, for instance, can be considered a financial goal, so treat it as such! Consider automating your savings. For instance, Nusenda has a Holiday Club Savings Account that automatically deposits a set amount from your paycheck until it matures on October 31. Begin saving now; the earlier the better!
List your expenses
Get it in writing! Realistically, where does your money go over the holidays? For most of us, we can categorize our expenses like this:
- Gifts- For family, friends, kids’ teachers, or co-workers.
- Decor- Festive decorations for your home that might include lights, ornaments, candles, an Advent calendar, or a tree.
- Entertaining (food and drink)- If you are hosting, you might choose to splurge on meal costs and drinks. However, you could also decide to host a potluck where the costs will be divided.
- Unpaid time off- This one’s for our self-employed members as well as freelancers. Prepare your budget accordingly!
- Travel- Many people plan a holiday vacation, but flying this time of year can be expensive. If you can, schedule your trips in the off-season.
Determine how much you can spend
Don’t be afraid to set limits! This number should be what you can realistically afford without dipping into your savings. Take your monthly income and deduct your regular expenses. What you have left over is your discretionary income.
Track your spending
Log into your Mobile and Internet Banking app to keep tabs on your account balance and easily review transactions. Or go old-school and hold on to receipts and deduct the totals from your budget as you go. You can also use a budgeting app that will track expenses for you.
Explore other ways to save money
Can you trim your “hidden” expenses at all? Comb through your subscriptions and memberships to see if you can do away with one. Consider going without daily “treats,” such as that latte on the way to work. If you are prone to going out to dinner or getting takeout, think about doing more meal planning and making homemade dinners. Finally, rethink your utilities. The average U.S. household spends nearly $152 a month (according to SaveOn Energy), but frugal habits (like unplugging electronics, adjusting your thermostat, or swapping out lightbulbs for LED bulbs) can save you money. A little thought goes a long way!
Following these tips can help you have a wonderful holiday season while still maintaining the health of your finances. Happy holidays!