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How to Set a Budget for the Holidays Thumbnail

How to Set a Budget for the Holidays

The holiday season is a time of joy, celebration, and giving. However, with all the holiday excitement comes the need for careful financial planning. Did you know that the average American spends almost $1,500 on gifts for the holiday season?1 Add in travel expenses, decorations, and other events and the expenses start to pile up.

Setting a budget for the holidays is essential to ensure that your celebrations are both enjoyable and financially responsible. Here, we'll explore how to craft a holiday budget that fits your needs, allowing you to revel in the holiday spirit while still watching your wallet.

1. Reflect on Your Values and Priorities

Before diving into budgeting details, take a moment to reflect on your values and priorities for the holiday season. What are the experiences and traditions that matter most to you and your loved ones? Understanding your priorities will serve as the foundation for your holiday budget.

2. Determine Your Total Holiday Budget

Once you've clarified your holiday priorities, establish an overall budget for the season. This amount should encompass all holiday-related expenses, from gifts and travel to decorations and charitable giving.

3. Include a Contingency Fund

Even the most meticulously planned budgets can encounter unexpected expenses. To account for any surprises, set aside a contingency fund within your holiday budget. This safety net will provide peace of mind and flexibility if surprise expenses pop up.

4. Account for Charitable Giving

The holiday season is a time for generosity and giving back to those in need. Consider allocating a meaningful portion of your budget to charitable donations or philanthropic initiatives. Embrace the spirit of the season while giving back to causes that are near and dear to your heart.

5. Monitor and Adjust as Needed

Once your budget is in place, monitor your spending throughout the holiday season. Keep track of expenses, review your budget regularly, and be prepared to make adjustments if necessary. Staying on top of your finances during this festive season will make it much more enjoyable.

Crafting (and sticking to) a budget is a thoughtful and responsible approach to the holiday season. By reflecting on your values, prioritizing spending categories, and adjusting as needed, you can create a holiday experience that is enjoyable and aligned with your financial goals.

We are a Fee-Only Fiduciary financial planning and investment advisory firm that individuals and small businesses in the Akron/Cleveland area and throughout the United States trust with their financial future. Our team will work with you to create a personalized financial blueprint. To begin your journey towards a successful and stress-free financial future, please give us a call at 330-836-7000 to schedule an introductory conversation. Alternatively, you may also schedule an introductory conversation with us here. 

Since 2004, TCM Wealth Advisors has been providing Fee-Only Fiduciary Advice to our clients in Northeast Ohio (Akron/Canton, Cleveland), and around the country.

  1. https://www.cnbc.com/2022/12/08/how-much-americans-may-spend-on-the-holidays.html#

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.