The holiday season is one of the most joyful times of the year — but it can also be one of the most expensive. Between gifts, travel, decorations, entertaining, and charitable giving, it’s easy to overspend and feel the financial impact well into the new year.
The good news? With a thoughtful holiday spending plan, you can enjoy the season’s celebrations without derailing your long-term financial goals. Here’s how to do it:
1. Start With a Total Budget in Mind
Before you make a single purchase, decide how much you’re willing — and able — to spend in total. Think of this as your “holiday fund.” A good rule of thumb is to base this number on what you can afford without dipping into savings, using high-interest credit cards, or delaying other financial priorities like retirement contributions or emergency savings.
If you’re not sure where to start, review last year’s holiday expenses as a benchmark — then adjust up or down based on your current financial picture.
2. Break Down Spending by Category
Once you have a total budget, divide it into categories that reflect your holiday priorities. Common ones include:
Gifts – For family, friends, teachers, colleagues, etc.
Travel – Flights, gas, hotels, or other transportation costs.
Entertaining – Food, drinks, and party supplies.
Decorations – Indoor/outdoor décor, trees, lights, etc.
Charitable Giving – Donations to causes you support.
This step ensures you have a clear plan for where your money is going — and helps prevent overspending in any one area.
3. Make a Gift List and Set Limits
Gift-giving often accounts for the largest share of holiday spending — and it’s where budgets most often go off track. Make a list of everyone you plan to buy for and assign a specific spending limit to each person.
If the total exceeds your overall budget, adjust accordingly. This might mean choosing more meaningful, lower-cost gifts, organizing a gift exchange, or giving group gifts rather than individual ones.
4. Plan Ahead for Deals and Timing
Spreading out your purchases over several weeks or months — rather than doing all your shopping in December — can make costs easier to manage and help you take advantage of seasonal sales.
Shop early for better prices and less stress.
Compare prices online before buying.
Use cashback programs or rewards points to offset costs.
5. Track Your Spending as You Go
A budget is only as good as your follow-through. Keep a running total of your spending in each category — whether that’s in a spreadsheet, a budgeting app, or a simple notebook.
Regularly checking your progress keeps you accountable and helps you make adjustments before small overruns turn into big ones.
6. Don’t Forget Future You
It’s tempting to splurge during the holidays, but remember: January bills always arrive. If you find yourself stretching to cover costs, consider scaling back this season. Thoughtful, budget-friendly celebrations are just as meaningful — and they don’t come with the financial hangover.
The Bottom Line
The holidays should be about joy, connection, and generosity — not stress and financial regret. By creating a clear spending plan and sticking to it, you can focus on what really matters while staying aligned with your long-term financial goals.
And if you’d like personalized guidance on budgeting, saving strategies, or planning for big seasonal expenses, our team is here to help. Reach out any time to discuss how your holiday plan fits into your broader financial picture. Contact one of our Advisors to discuss your situation at in**@************rs.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.