How To Set A Budget For The Holidays

Holiday spending can easily add up, especially since the prices of most products have increased because of inflation. Try to avoid stress by setting a budget for the holidays—and most importantly, sticking to it.

Here’s how you can create a realistic budget that covers all holiday expenses, and what to do to avoid overspending.

Creating A Budget For The Holiday Season

Make A List (And Check It Twice)

Write down everything you expect to pay for, including the miscellaneous expenses like service tips or cab fare after a party. Seeing it all on paper can help you set priorities and plan where you can save.

Here are some common expenses that you can include in your budget for the holidays:

• Gifts for family, friends, and colleagues
• Gift wrapping supplies
• Shipping fees
• Travel
• Entrance fees or tickets for holiday events
• Decorations
• Parties
• Party clothes
• Tips
• Cab fare
• Food/Ingredients for potlucks and home entertaining
• Personal allowance for holiday sales  
• Donations to charity

That’s a long list of expenses! Proving how easy it is to overspend if you don’t set a budget for the holidays.

Set A Maximum Budget

Most people will create their budget by making a list, adding up how much they will spend, and figuring out how to get the money.

But in these uncertain economic times, you have to be practical. Start with how much money you can afford to spend, and then shorten your list so you stay within your budget for the holidays.

For example, if you can only spare $800, then stick to that. Don’t use your credit card to pay for things that you don’t really want or need, or have no long-term value.

Set Priorities

Now it’s time to make practical sacrifices. Rank the items in terms of priority and look for expenses you can reduce or eliminate completely. For example, you can decide not to spend on decorations and party clothes, so you have more money for holiday events.

Make A Detailed Gift List

This item deserves special mention because it’s where most people go over budget for the holidays. Write down everyone’s names, and then set a specific spending limit for each.

Don’t feel pressured to buy something you can’t afford. Everyone is feeling the effects of inflation, so they’ll understand if you can’t give a big gift this year. It’s perfectly okay to decide that you’ll only buy gifts for the kids, and then give everyone else home-baked cookies.

You can also ask your family, friends, or co-workers if they’re willing to skip individual gift-giving and do one of these instead:

• Play Secret Santa
• Spend a day volunteering together at a charity
• Have a potluck party or dinner
• Do something fun together (ex: escape room, picnic, karaoke)
• Give your time instead of gifts, like offering to babysit, help clean or decorate, or teach someone how to make a dish they like

Put Restrictions In Place

The temptation is real. So, you don’t break your budget for the holidays, you have to set up a system where you can’t overspend even if you wanted to.

For example, you can use the cash envelope system: withdraw your total holiday budget and put it into different envelopes that represent the different spending categories. You can only spend what’s within that envelope for its specific purpose. If your party budget ran out, that’s it.

You can also use a debit card or transfer the money to a PayPal account for online purchases. This puts a hard stop on your spending, so you don’t end up using credit to pay for a holiday expense.

Track All Expenses

Write down everything you spend—yes, even tips, cab fares, or holiday gift wrapping paper—in a notebook or app. It’s often those little expenses that add up and break the budget.

If you are sharing your holiday budget with a partner, use an app that consolidates your spending. You may be tracking your expenses, but if he’s not then you’ll still end up breaking your budget for the holidays.

Know Where To Get Emergency Funds

It’s always a good idea to have a backup plan for unexpected expenses—not trivial things like gifts of travel, but urgent matters like medical treatment, car or house repairs, and other personal emergencies.

Ideally, you have savings set aside for that purpose, but if it’s not enough, you have the option to get an online title loan. It is easy and convenient to apply, and you can get the money you need on the same day. Such loans can help you out when you need emergency holiday cash as soon as possible.

What Is An Online Title Loan?

A title loan uses your vehicle title as collateral.  You can borrow up to $15,000 and can apply even if you have a bad credit score. The only requirements are a state-issued ID, a lien-free vehicle title, and a vehicle inspection to determine the vehicle’s market value and the loan amount you qualify for.

Best of all, you can apply for an online title loan from the convenience of your home. Just fill out the inquiry form and a loan specialist will call you to explain how it works, how much you qualify for, and your monthly payment.

After the call, you’ll meet the specialist at a convenient time and place for your vehicle inspection and title verification. Once that’s done, you’ll receive the loan packet and sign some forms, to get the money either the same day or the next business day.

Getting An Online Title Loan

If you would like to get started on your online title loan today, At Home Title Loans can help. By providing some basic information they can connect you to a licensed lender in your area in no time at all.

Just fill out the online form so they can find a direct lender that is right for you. The process is easy, speak with a loan specialist, use the chat feature or hotline at 1-800-514-2274 and get the cash you need to handle your emergency.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.