Top 5 Holiday Budgeting Tips for 2022

Just because it is the holidays, doesn’t mean you have to bust the budget. You have worked hard all year long, planning and saving. Now are in the home stretch to finish off 2023 strong.

For some of you, this is the first holiday season since you started budgeting. Thanksgiving, Christmas and New Year’s are full of traditions, family, friends and parties. How do you manage to keep those traditions and satisfy your budget? Let’s take a look at a few tips to celebrate the holidays while keeping your budget intact.

Tip #1: Plan ahead for gift exchanges and holiday parties.

Not another gift card, unless it is something they really want.

With the shift in the school and office environments over the last 2 holiday seasons, many of us don’t know or may have forgotten what it is like to have office potlucks, gift exchanges and social gatherings with friends. Many of these festivities may also not look quite the same as many of our office mates are now virtual and schools may no longer allow home cooked goodies.

This means that you also have to adjust how you prepare for these events. With virtual gift exchanges making it possible to celebrate on one of the many video conferencing platforms and easy to select gifts, this also means you have the opportunity to shop around the net a bit for great deals.

For those in person exchanges, think about things that people really will use in their day to day lives instead of just more stuff. Ideas can range from an oil change to a renewal of a membership at a warehouse club. The one thing it does require is attention and listening to really find out what it is that is important to those around you, whether a teacher, office mate or close family member. This can help you not only buy a gift that will be used but stay in control of your budget.

Tip #2: Make a budget within your budget for holiday travel.

Because you are super prepared for the holidays this year, you have been sinking money monthly into a fund just for this great holiday trip. Whether it’s a trip to grandma’s house or a Caribbean cruise, you shouldn’t be stressed about what you are spending during this time. The best way to take control is to take control.

Take the amount that you have saved in your sinking fund and make it the your total for the travel budget. Create an itemized budget that includes everything you may spend during your trip including:

• Transportation/Gas: This may be plane/train tickets, rental car, gas or metro passes to get around during your stay.
• Food: Remember to include quick stops on travel days, restaurants during your trip with friend and family and any grocery runs. Be creative when it comes to planning out your meals.
• Entertainment: From museums to a family outing to the movies, you don’t want this to catch you off guard. Stretch you budget even further by finding Groupon or CityPass deals before you go.
• Parking: This may be at the cruise terminal, hotel or airport. This is something most people forget.
• Gifts/Souvenirs/Shopping: You may want a little trinket to remember your trip or maybe take a day just to hang out at the outlets. It is fine to peruse and grab some deals as long as it is in your plan.

One key thing about this budget is to actually spend the money. You have worked hard to save this money so now is the time to enjoy it, within the limits of the budget.

Tip #3: Shop the deals and stock up for beyond the holidays.

Black Friday is not longer just on the Friday after Thanksgiving. Some retailers now start as early as late October and continue in waves until the weekend after Thanksgiving. Most people look for the big ticket items like TVs, cell phones and gaming systems.

It is time to look beyond the bright and shiny stuff and think about what you can stock up on for the next few months. Check out the warehouse clubs for food and household items. Drugstores like CVS and Walgreens have deals on personal care items like toothpaste, deodorant, makeup and detergent. Big box stores typically have underwear, socks and pajamas.

Your favorite brands may also have sitewide sales where you can stock up on items you would normally pay full price for during the year. Just be sure you know your prices and what constitutes a good deal in your eyes. Not everything that is advertised during Black Friday is a deal.

Tip #4: Your wish list can be your needs list.

Some friends and family may ask for a wish list of things you would like for the holidays. Virtual gift exchanges like Elfster also allow you to put together a wish list to help your gift giver make the perfect match.

You may be tempted to just throw the first 5 things you come across on the wish list or add some random obscure funny items. Think about items that you need to replace or haven’t been able to fit into the budget. Not only will this help you on your financial journey, but the gift giver will be satisfied to see you actually using their gift.

Tip #5: Be willing to bow out

You may not be able to say yes to everything. Take a good look at all of the invitations you will receive for the holidays and ask yourself these questions:

• Does it fit in the budget?
  • If the money isn’t there, this is a no-brainer
• Am I able to make it cheaper by getting a deal or suggesting alternatives?
  • With the economic down turn, suggesting alternatives may not be as hard as you think. Everyone is feeling the pinch so they may be thankful for your suggestion.
• Do I really want to go to this event?
  • Many times we spend time and money doing things we really didn’t want to do in the first place. Don’t feel pressured to fall into that trap.

If the answer to one or more of these are no, consider respectfully declining the invitation.

Don’t let the holidays ruin all of the hard work you have accomplished throughout the year. The best gift to yourself will be to not ring in 2023 while still paying for 2022.