A Sneak Peak Into My Holiday Budget

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My holiday budget has evolved over the years. In the early years, I didn’t have a  budget at all. I just spent as much money as I wanted with little regard to how much I was spending. I had no clue how much I was wracking up because I paid for all of it via credit cards. And, it was far from a realistic holiday budget.

Inevitably, when January rolled around, and the credit card statements started pouring in, I’d feel sick when I looked at the amounts.

After I had lost my job,  I didn’t need a budget because I didn’t have the money to buy anything.

Once that changed, and I was back on my feet and working on getting out of debt, I started budgeting my Christmas expenses. I still do this today.

My Holiday Budget

When I first started out budgeting, I forgot lots of things. It’s easy to do when we’re busy; we forget all the things that go into creating a holiday budget.  We think we have it all figured out, only to find at the end of the holiday season we missed many things.

That’s why I like to use a guide of sorts to spark my memory and ensure I haven’t forgotten anything.

For example, I never included the cost of my home-made cookies. But between baking supplies and the supplies needed to wrap them up and look like they came from a professional bakery, it cost a pretty penny.

Now, for a more in-depth look at my holiday budget.

Gift Giving

This area includes gifts you’ll give to anyone on your list. Besides family members, don’t forget to include the kids’ teachers, postman, nail tech, whoever you intend to give a gift. Include supplies for homemade gift giving, bows, wrapping paper, cards/stamps, materials for shipping, and, of course, don’t forget the stocking stuffers! And don’t be afraid to cut people off your list if you just don’t have the resources.

As you can see from this first section, my two biggest expenses include a gift for my daughter and son-in-law and my mother’s caretakers. Other than those two expenses, most are fairly reasonable as I only exchange Christmas ornaments with a few friends.

Read:  How To Give Generously When You Don’t Have A Nickel To Spare

Home for the Holidays

This section includes anything for the home. Don’t forget to include your tree, ornaments, and lights both inside and out, table settings, candles and if you plan on hiring a cleaning service to get your home up to par, you’ll include that here.

I have loads and loads of decorations and so this year and for the last several years this section doesn’t include too much. I did throw away all my old lights as most of them would shut off if you touched them the wrong way. It was very frustrating. This year I included the cost, but as you can see, I got a great deal. Only $3.99 per light set.

I also wanted to take a class at my local florist shop so that I could create my boxwood tree. I think it came out fantastic. Plus it was a great night out with my friend Lori.

Read:  The Best Shopping Tips To Keep You On Track, On Budget and Calm This Holiday Season

Let’s Party

This section will include all the costs associated with holiday meals and parties. It also includes baking supplies, potlucks or any catering costs.

I’m not having a party this year and haven’t had one in many years. However, I have a good-sized crowd on Christmas Eve. Most of the people who work all day and can’t contribute too much to the party, which leaves me handling the brunt of the work and associated costs.

We have the typical Italian Christmas Eve dinner with the 7 Fishes! That’s why the amount is so high. Shrimp, scallops, haddock, lobster…they can be pretty pricey.

Christmas day I doubt I’ll even spend $50 as more people will be bringing food that day.

The article below shows how you can save for holiday dinners and party foods when you know ahead of time what’s going on sale at your local grocer. It’s an easy read but full of valuable information to help you trim your holiday grocery budget.

Read:  Food Shop These 7 Weeks And Transform Your Grocery Budget

Miscellaneous

This section includes the cost of traveling to grandma’s or wherever you’re headed, any events you plan on attending, thank you notes & stamps, and other miscellaneous expenses.

I started a tradition with my daughter when she was a little girl that we attended some holiday play or musical performance each holiday season. When I was flat broke, I couldn’t afford to take her to any event. Once my finances were in order again and my debt was paid off, we resumed our holiday tradition. I understand this is pricey, but we have such a wonderful time together, and we both look forward to attending an event each year.

Charitable Giving

No holiday would be complete if I didn’t give back to some of my favorite charities.  

Total budget:   $1885             (allocated)               (actual)  TBD

I’m sure some of you are gasping at the number. But this is a true and accurate number, and I didn’t even buy that much stuff.

When you take the time to plot out your budget, you clearly see how much money you spend on the holidays. Could I cut it down? Yes, and I probably will as I shop for food. I doubt I’ll spend as much as I budgeted.

The point is I have the money budgeted and planned for so I’m not using credit cards to fund the holidays.

How are you budgeting for the holidays? Do you have it all covered?

Conclusion 

A lot goes into creating a realistic holiday budget. Most of us don’t want to really add it all up, but if we’re honest with ourselves most of us when it’s all said and done will easily spend $1,000 or more. Statistics tell us consumers will spend $1,128 dollars this year on the holidays. And so even though my totals costs are higher, I at least know what I need to save in order to have a debt-free holiday.

Start your planning by grabbing a copy of my FREE Holiday Planner. It’s got everything you need to make sure this holiday is planned out so it can be uncomplicated and even enjoyable. It’s a sanity saver for sure.

Maureen Campaiola

I’m a professional cleaner with over 13 years of hands-on experience cleaning homes, a published writer, certified money specialist, and the founder of A Mess Free Life. After paying off over $50,000 in debt, I dedicated myself to helping others master their homes and their money — proving that a clean, organized, stress-free life is possible no matter where you’re starting from. When I’m not writing, you’ll find me cooking, playing bocce, sipping an extra dirty martini, or enjoying the ocean with my cats nearby. I’m also a proud mom and grandma who cares deeply for my mother at home.