It’s almost that season already!  Christmas is such an awesome time for families and friends, there is just something magical about it.  With all the food, activities and gifts comes some extra expense. The best way to prevent any holiday money stress is to have a PLAN for your expected expenses, especially if you are trying to plan for Christmas on a budget.

Having that feeling of panic about not being able to afford Christmas gifts, or running out of money for December and you still have two Christmas parties left is so stressful!  Sometimes you even end up borrowing money or putting off payments until the next year so you end up paying for Christmas months later.

Whether you realize it or not, that stress about money has now just hung a cloud over Christmas, New Year’s and even the next month.  So what’s the big fix for this?

Planning!

Now don’t panic, I have already done the work for you!  No matter what your budget is for this Christmas (and you should definitely have a budget for this season!), you need to have a plan for where all of your money is going to be spent.  Otherwise, you will end up spending way more than you had ever planned on.

Get the FREE Christmas Budgeting Checklist & Gift List to eliminate any surprise expenses this year!  Can’t remember everything you spend money on during Christmas?  We’ve got you covered!  Sign up below for instant access!

If you are totally new to budgeting, be sure to start with these:

What is a Zero-Based Budget & Why Does it Work?

How To Set Up a Zero-Based Budget Without Wanting to Rip Your Hair Out

Why You Need an Emergency Fund & How to Make it Happen

Here is a comprehensive list for you to walk through when you are thinking about how to plan for Christmas on a budget.  It doesn’t matter what your budget is, you just need to have a plan so what you budget matches up with what you actually end up spending.  This will alleviate any money-related stress surrounding the holidays (I can’t fix your whacky Aunt Martha who still pinches your face, but we can fix the money part of it!).

The All-Inclusive Plan for Christmas on a Budget

Travel

Traveling around the holiday, to some extent, is pretty much a given for everyone.  Think about:

• Where you actually will be traveling to,
• Anticipated gas expenses,
• Food on the road, tolls, hotels, etc.

Take a look at your normal gas budget and make adjustments for how much you think you will be traveling.

Giving

Christmas season is the time with an emphasis on charity, giving and serving others less fortunate than ourselves.  This can include:

• increased giving with your church,
• community outreach programs (ex. Adopting a family to help supply them with Christmas gifts), or
• bake sales.
• If you have kids in school, they may have a program going on for the kids to get gifts for other children their age in need.

Taking all of these opportunities for giving into account will help you to plan and budget for these things.  Then when the time comes to help someone else during the holidays, you will be able to with no worries or stress.

Professional parties

These are any work-related parties you will be participating in.  Things you may need for these parties are:

• food,
• hostess gift,
• gifts for your co-workers,
• a gift for your boss,
• and even a new outfit for the party.

It’s great if you can find out in October what the plan is for Christmas (some offices do a secret Santa, some do nothing, some only buy gifts for the boss, etc.) so you can start planning!

If you have kids in school, it is guaranteed they will be having a Christmas party.  You will need to be prepared for:

• a gift for the teacher (don’t forget their bus driver too!),
• snacks/treats for the party,
• gifts for your kids to buy and exchange with friends,
• and they may need to wear a Christmas themed outfit.

Decorations

This is the big one!  This is one to set your own limit for whatever you think you need/want for this holiday season.  Major decorations include:

• a Christmas tree,
• lights (inside and/or out),
• ornaments,
• tree skirt,
• stockings,
• stocking holders,
• various home decor (knick-knacky stuff),
• outside decor (garden flag, garland, wreaths, etc.).

Again, it doesn’t matter what your budget is for all of this stuff, the big point is to make a budget and stick to it.  Come January 1, you want to be able to look at your holiday spending and not panic because you overspent in every single area.  Decrease your stress by sticking with a plan designed by you!

Christmas cards

This may or may not be an expense you have.  I am a sucker for Christmas cards. I just love them, and I love the tradition of them.  I will be having a Christmas card every year, forever. If you are on that bandwagon with me, then you know there are some costs associated with them.

If you have professional photos taken for your Christmas card picture you will need to prepare for:

• the photographer costs
• +/- clothing costs if everyone has new outfits for this posed, but “totally natural” family photo (these are what I have! lol).

Then there are the costs associated with the physical product that is your magnificent Christmas card!

• cards,
• envelopes,
• and postage.

Gifts

This category can completely blow your budget, especially if you are a natural spender and like to give gifts to others (that’s me for sure!!).

• First, make sure you have a list of every person (and pet!) you plan to give gifts to (from your garbage man to your husband),
• then decide what you will get for each person
• and how much you will spend on the item(s).
• Then you need to have all the supplies for your gifts:
  • tags,
  • tissue paper,
  • wrapping paper,
  • gift bags,
  • ribbon.

Don’t forget stocking stuffer gifts!  These are always the gifts I forget and have to go out last minute for.

Food

You may need to increase your overall food budget for the month pending on what your social engagements look like.  Things to consider are:

• having Christmas breakfast/brunch/dinner at your home
• or if you are going to a Christmas where you need to bring a dish to pass.
• Are you baking cookies as gifts for people? Think about the baking supplies including:
  • cute bags or
  • containers/trays to use for the gift wrap.

Clothing

New clothing really shouldn’t be that crazy of an expense around the holidays, but a few things to think about are:

• if new outfits are needed for a Christmas card photo,
• new Christmas outfits for church
• or if you need a specific outfit/dress for a party.

Clearance shopping post-holiday season

This can be such a smart expense during your holiday season (and it gets me amped up to be planning for the next year and saving tons of money!!).  If you have the cash flow for it, hit up all the post-holiday sales to get ready for next year. I’m talking

• decorations,
• gift wrapping supplies,
• lights,
• holiday dishes,
• place settings
• or even bedding!  Go nuts!

The awesome part about starting to buy for next year is, once you start doing this, your budget will be decreased.  Think about it, next year you will be using the clearance items you bought the year before so you don’t have to go out and buy things at full price. You can then wait until after the holidays to buy all your supplies at a steep discount to be used for the next year.  It’s awesome!!

Holiday Activities

Pending on where you live, these extra holiday activities may cost you something or be totally free.  This could include:

• sleigh rides,
• ice skating,
• sledding,
• skiing,
• going to the movies, etc.

If your family has a tradition of a certain activity, be sure to include it in your budget!

Christmas tends to be a budget buster because there are just so many little expenses.  Even with saving for Christmas gifts all year, you can still find yourself wondering how you ran out of money before December is even over.  All of these additional expenses can take you by surprise if you haven’t prepared for them. Make this holiday season your most care-free yet by planning for all of those possible expenses.

Use our FREE Christmas Budgeting Checklist and Gift List to plan for all of your possible expenses and set up a budget that will work for your family!  Sign up below to get started!

Did I miss anything??  Are there any other things on your Christmas checklist??

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