Budgeting for the Holidays Now | Free Holiday Budget Planner

The holiday season is upon us, and for many working moms, that means juggling a hectic schedule of work, family responsibilities, and holiday festivities. With so much going on, it can be easy to overspend and blow your budget during the holidays.

That’s why I am budgeting for the holidays this year. I’ve never sat down and made an intentional practice of really planning out the holidays. It’s a big expense for us every year. And you know what the cool thing is? If you celebrate the holidays, you can prepare for them. Why? Because they come every single year—on the same day, at the same time.

There is no excuse to go into debt for the holiday. There is no excuse to have to put all your Christmas presents on your credit card. You can be intentional with your holiday budget and set it up beforehand. You can set it up for January or July. You have plenty of time to plan for the holiday season.

This blog post is all about budgeting for the holidays.

Creating a Holiday Budget

I recently started my debt journey, which led me to discover the world of budgeting. I am now an annual, monthly, and biweekly budgeter. This was my first year setting an annual budget and sticking to my monthly and biweekly budgets.

However, I failed to budget for the holidays. I usually use the ‘extra’ paycheck in November or December for the holidays, but it is never enough to cover all the expenses, so I use my credit card.

That is why I plan to start budgeting for the holidays now. Here is how.

Make a list of your holiday expenses (And check it twice)

Identify your major holiday expenses, including gifts, decorations, food, travel, and entertainment, and estimate how much you’ll need to spend in each category. Consider your financial goals and priorities when allocating your budget to ensure you stay within your means. Reviewing last year’s holiday spending may also help set realistic budget goals and adjust them as needed.

List of common holiday expenses

• Gifts and presents for family and friends
• Travel expenses (flights, accommodation, rental car)
• Food and drink for holiday meals and gatherings
• Entertainment and activities (such as tickets to events or attractions)
• Holiday decor
• Wrapping paper, ribbon, boxes, gift bags, etc.
• Holiday cards and postage
• Holiday pictures
• Clothing and accessories for special events or parties
• Charitable donations or gifts
• Pet care or boarding services, if needed
• Extra expenses for last-minute purchases or emergencies
• Travel insurance or other unforeseen costs
• Holiday tips for service workers (such as mail carriers, hairdressers, etc.)
• Post-holiday sales or clearance items
• Return shipping costs for gifts or purchases made online
• Extra transportation costs (such as taxi or rideshare services)
• Unexpected expenses, emergencies, or incidents may arise during the holiday season (so you do not dip into your emergency fund!)

Create holiday spending categories

After making a full list (or brain dump) of all the holiday expenses you anticipate, create your holiday spending categories and assign a dollar amount per category and subcategories.

You can use the Free Holiday Budget Planner to create your holiday budget and track actual spending.

Make a plan for incorporating your holiday budget into your overall finances

Following some key guidelines is important for budgeting effectively for the holidays as a working mom. One helpful strategy is to use the 50-30-20 rule to allocate your income. This means 50% of your income goes towards needs, 30% towards wants, and 20% towards debt repayment and savings. By following this strategy, you can ensure that you are prioritizing your financial goals while still enjoying the holiday season.

Set up a sinking fund or high-yield savings account to grow your holiday Fund

Another helpful tip is to consider using a separate savings account specifically for holiday expenses. I personally use a high-yield savings account to fund my holiday fund. This can help you track how much you have saved for gifts, decor, and other holiday expenses and prevent you from dipping into your regular savings or emergency fund.

Sleighing Expenses Without Losing the Magic

You can enjoy the season without breaking the bank by carefully planning, budgeting, and saving for the holidays.

Trim the Fat (and I’m Not Talking About the Turkey)

First things first, let’s take a good look at our budgets. Where can you cut back? Maybe it’s skipping that daily latte or opting for a movie night at home instead of the theater. Every little bit helps!

Get Creative with Gifting

Who says gifts have to come from a store? Consider:

• Consider alternative gift ideas, such as gift experiences or handmade gifts (hello, Pinterest!)
• Gifting experiences (spa day, anyone?)
• Organizing a family gift exchange to reduce the number of presents
• Shop in discount stores like Bargain Hunt

Pro tip: If you’re sending gifts to far-flung relatives, remember to budget for wrapping supplies and shipping costs.

Travel Smart

If you’re hitting the road (or skies) this holiday season:

• Start setting aside money now for gas, tolls, airfare, and accommodations
• Look for deals and book early when possible
• Plan how you’ll transport gifts to and from your destination

Home for the holidays

Hosting this year? Here are some budget-friendly entertaining ideas:

• Potluck-style gatherings (less cooking for you, too!)
• DIY decorations with the kids
• Stream holiday movies instead of going out

Plan Ahead, Stress Less

The key to a jolly holiday season is planning ahead. Start your holiday shopping early to spread out expenses and take advantage of sales. And remember, it’s okay to say no to some invitations or activities if they don’t fit your budget or schedule.

Bonus Tip: If you’re feeling overwhelmed, consider chatting with a financial advisor or checking out some personal finance blogs for more in-depth budgeting strategies.

Avoiding Overspending

When it comes to holiday spending, set realistic targets to avoid overspending. Consider setting a specific amount per person for gifts to avoid impulse buying. Sticking to your budget and avoiding overspending is also important, even if it means cutting back on certain gifts or festivities.

Post-Holiday Review

Once the holidays are over, review your spending and identify areas for improvement. Use this reflection to adjust your budget for the next holiday season, and consider setting up a dedicated savings account to prepare for future expenses.

Remember, mamas, the holidays are about joy and creating lasting memories, not stress. By planning ahead and getting creative, we can make this season magical without the financial hangover come January.

How do you handle budgeting for the holidays? Share your tips in the comments below!