3 Key Budgeting Tips for the Holiday Season in 2023
After Halloween, the holiday season really seems to quick off. It’s a great time of year to enjoy with friends, family, and co-workers, and although this is a time we associate with great memories, it can also significantly impact our wallets. To avoid the added stress of higher expenses that accompany the holidays, it’s a good idea to keep a budget for the holidays in mind. Let’s discuss three key holiday budget tips to keep you on track for the holiday season in 2023, especially with inflation and market volatility at top of mind.
Plan out your holiday budget now and stick with it
While we are in the moment, expenses can add up quite quickly, and we may find we have spent far more than expected. Especially with the current inflationary environment, you may soon find that gifts are adding up much quicker than in previous holiday seasons.
Whether we are at a happy hour with co-workers or shopping for friends and family, it is very easy to get wrapped up in the holiday joy and overspend. By planning now, we can avoid succumbing to the pressure of holiday spending and stick to our budget for the holidays. Prepare accordingly and set a budget as we move into the holidays, so you don’t wake up on January 1st with a financial hangover!
Don’t forget about charitable giving in your holiday budgeting
At this time of the year, we also feel much more charitable as we look to give back. Please donate time and money to interests that are important to you, but it is also essential to include this in your holiday budgeting. Take the time to think about your charitable contributions, corresponding tax impacts, and your budget for the holidays. Otherwise, you may realize you’ve stretched yourself further on your budget than you would have liked to.
With that said, charitable giving can have some positive tax implications and reduce your tax bill when donating to non-profit 501(c)(3) organizations. Learn more about how you can reduce your tax liability through charitable giving in our article.
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Start planning your budget for next year
As you immerse yourself in the season, try to step back, take notes, and track your expenses. This will give you a better sense of what to expect in the coming year (or would like to expect) so that you can start saving now. Do you ever feel like the items you buy seem to go on sale the day after your purchase? With some foresight, you may be able to minimize emotional decisions and actually save money by taking advantage of sales over the course of a year. It will also prevent you from racking up balances on credit cards each year and falling into the trap of holiday marketing.
With these holiday budgeting tips in mind, let’s make this the season to be jolly and keep our wallets full.
Enjoy the holiday season, and have a great time making unforgettable memories! Just don’t forget to keep an eye on your finances through the gift wrap and eggnog. If you have questions about these holiday budget tips or if we can be of service, be sure to get in touch with us by clicking below!