Last year, people spent $936.3 billion on Christmas in the United States alone. If you want to celebrate the holidays this year without backsliding on your financial goals, you may want to consider a Christmas budget if you haven’t already.
A good budget gives you permission to spend based on what you can really afford. That way, you can enjoy the season without unnecessary stress that comes from blind consumerism. In this blog, we will cover how to make a Christmas budget, as well as some great Christmas gifts for the aspiring wealth builder on your list.
How to Make a Christmas Budget
1. List Your Income
Like any budget, your Christmas budget must start with understanding your financial situation. List all sources of income, including your salary, freelance gigs, side hustles, or any other revenue streams. A clear picture of your total income sets the stage for a realistic budget that accommodates both regular and holiday-specific expenses.
2. List Your Regular Expenses
Before diving into holiday-specific costs, catalog your regular monthly expenses. This includes rent or mortgage, utilities, groceries, and other necessities. Don’t forget to factor in debt payments and contributions to savings—maintaining your financial health should remain a priority during the holiday season.
3. List Your Christmas Expenses
Now, turn your attention to the holiday-specific expenditures. Think comprehensively, including:
- Gifts
- Travel
- Decorations
- Holiday Attire
- Special foods
- Hosting essentials
- Ugly Christmas sweaters
- Cookies for Santa
Try to think through your entire holiday calendar. An extensive list will help you ensure nothing catches you off guard.
4. Subtract Expenses from Income
Now that you are armed with both regular and holiday-related expenses, subtract these from your total income. The goal is to either have money left over or break even. If you find yourself in the red, revisit your Christmas expenses and make adjustments to align them with a more realistic budget.
If your regular expenses consume a significant portion of your budget, consider ways to increase your income temporarily. Take on a freelance project, explore side hustles like food delivery services or gig economy platforms, or declutter and sell items you no longer need. This extra income can provide a financial cushion during the festive season.
Perhaps the gift portion is taking up significant room in your Christmas budget. Gift-giving is a significant part of the holiday season, but thoughtful presents don’t have to break the bank. Consider heartfelt and affordable alternatives, such as personalized homemade gifts or experiences.
5. Use the 80-20 Budget Rule as a Guideline
The 80-20 budget is a helpful rule of thumb when it comes to allocating your income wisely. Dedicate 70-80% for expenses (this encompasses both regular and Christmas-related costs.) Allocate at least 10% for tithing, and reserve 10-20% for savings and investing. This balanced approach ensures you enjoy the festivities without compromising your financial goals.
A Word to The Wise: Don’t Detract From Your Current Financial Goals
While you revel in the holiday spirit, it is essential not to lose sight of your broader financial objectives. Continue saving, paying down debt, and investing, to ensure you enter the New Year on a strong financial foundation. Avoid the temptation to put Christmas expenses on credit cards that you can’t pay off promptly. This will prevent post-holiday financial stress and do a world of good in helping you achieve your financial goals in the coming year.
The Perfect Affordable Gift for Aspiring Wealth Builders
We hope this blog helped you learn how to make a Christmas budget. Do you want to invest in the financial future of a loved one this holiday season? Then consider giving them The Essential Wealth Building Christmas Bundle! This gift package has been curated to help people build a strong financial foundation and kickstart their business journey.
The Christmas Bundle contains:
- Extravagant Favor: How to Walk in God’s Abundance Daily (Book, Devotional, and 8 Part Video Series)
- Run Your Race: How to Find, Follow, and Fulfill God’s Will For Your Life (Book)
- God’s Road to Financial Freedom: Simple Steps to Destroy Debt, Build Wealth, and Live Free! (Book)
- Fast Track Your Business (Video Teaching)
You can purchase The Essential Wealth Building Christmas Bundle here.
