Creating A Successful Holiday Budget and Sticking to It: A Guide from First State Bank

The happiest time of the year is almost here! But with all that joy and cheer can also come financial stress. The best way to avoid any money-related holiday blues is to have a solid budget and commit to it. Sticking to your budget can set you up for financial success in the new year.

Budgeting might sound like a daunting task, but this guide will help you simplify and streamline the process so you can focus on the joys of the season.

Getting Started

It’s best to start thinking about your holiday budget as early as possible—especially before you start purchasing gifts. Begin by outlining your financial priorities for the holiday season. Start with non-negotiables, then move down to extras that you’re willing to cut out if necessary.

Now is also a great time to review your spending from last holiday season. Make note of any unexpected expenses and see if there are ways to prepare for or avoid them entirely this year.

Create Spending Groups

Try to group your anticipated holiday expenses into different categories to track them more effectively. These categories can vary based on your holiday traditions, but helpful examples might include:

• Gifts
• Decor
• Travel
• Party hosting

Getting Smart With Gifting

For most people, the majority of their holiday budget goes toward gifts for family and friends. Here are some strategies to keep your budget on track while still giving thoughtfully.

Make A List And Check It Twice

Experts agree that listing who you plan to buy gifts for—and ideas of what to get them—can reduce total spending. This list gives you a quick view of estimated costs per person, allowing you to make adjustments if needed. Without a plan, it’s easy to overspend.

Be Realisitic

It’s easy to get caught up in a back-and-forth game of matching others’ spending. Maybe your sister bought you an expensive gift last Christmas, so now you want to do the same. But circumstances matter.

If your sister is in a stable job with no student debt, while you’re just starting out and working on paying off loans, your budgets will look different.

Stay realistic and remember: it’s the thought that counts. Your loved ones would rather receive a thoughtful gift than have you go beyond your means.

Get Personal

Keeping costs low doesn’t mean your gifts can’t feel special. Handmade items like painted ornaments, a tin of your famous holiday cookies, or a knitted scarf can be wonderful, heartfelt gifts. If you choose to make something, factor in the time it may take and start early.

Not particularly crafty? Consider giving your time instead. For example, you could offer a friend a night of babysitting so they can enjoy a stress-free date night.

Do Your Research

Before making any big holiday purchases, shop around to find the best prices. Look out for early Black Friday deals or free shipping offers. This is also a great time to redeem any travel or reward points that might expire at the end of the year.

Building in time for shopping around can help you avoid impulse buys, which often lead to overspending. Stick to your list, and avoid last-minute purchases!

Start The New Year With Your Finances in Order

At First State Bank, we pride ourselves on providing personalized service and expert guidance to help you feel confident with your finances. From savings and checking accounts to investments, home loans, and more, we’re here to support your financial journey. Contact us today to get started!