Smart Tip! Budgeting for the Holidays
The holidays are around the corner and if you’re like us, that means you’re making a list and checking it twice! Not to find out who has been naughty or nice, but to outline our budget for the season. At Brannen CPA Services, our goal is to provide honest advice and relevant insights so our clients can find the strength in their numbers. When it comes to the holidays, it’s smart to have a budget that keeps you on track with your financial goals. Remember, being smart about your finances doesn’t mean you’re a Scrooge and can’t have fun, too! In this article, we discuss how you can plan for holiday gift-giving, merry-making, and traveling while still being mindful of your finances.
Make a List
You don’t need to be Santa to benefit from list-making at the holidays. Making a list of all the family, friends, neighbors, and colleagues you are planning to buy gifts for is a helpful way to track your spending. We also find that it’s helpful to make a list of larger spending categories that take place during the holiday season such as travel, entertaining, and charitable donations. When you take the time to write everything down, you have a clearer picture of your financial situation and can make decisions accordingly.
Review Last Year’s Spending
Take a look at last year’s credit card or bank statement and see where and how you spent your money. Reflect on what was the most meaningful for you and your family - from traveling to see Grandma to going to a holiday concert. The numbers from last year will give you a sense of what your spending could look like again this year. If you overspent last year and accrued some debt, make things easier on yourself by cutting back on expenses in places that don’t feel like a top priority this holiday.
Be Honest
Whenever you are taking stock of your financial situation, it is important to be honest with yourself and your family. If you want to splurge on a fancy holiday meal, do you need to save money in your budget elsewhere? It can also be useful to set price limits for gift-giving to help keep things in your budget range. There are lots of ways to enjoy the holidays without breaking the bank!
Remember What Matters
Be generous with yourself this season by prioritizing your financial well-being - it will help you relax and enjoy the holidays even more! After all, being together with loved ones is always one of the greatest gifts, so put spending time with friends and family on the top of your list!
We wish you a very happy holiday season! Please remember if you have questions, don’t hesitate to call our office. We love helping our clients thrive!