How to budget for Christmas presents in 2023

Every holiday season, it’s hard to resist the temptation of spending a lot on gifts and decorations for family and friends. Like most things this year, the 2020 holiday season has forced us to rethink our traditional traditions and look for new options that are simpler and less complex.

Even though we may not be hosting our usual office parties or large family events, this doesn’t mean that people are less inclined to buy presents and spread cheer in other ways. It could even mean that people are more inclined to celebrate in this way. We had planned our gift exchange earlier than usual, because we were eagerly anticipating the next event. We hope that without travel or our daily routines, spreading holiday cheer to the young members of our family will make this feel like any other year.

What’s the difference? We are reducing our budget. Remember that the true value of giving gifts is to show the people in our lives that we care, and not necessarily about the items themselves. The key is to find ways to spread joy without overspending.

How to Set a Christmas Budget

This year, I’m all about finding that perfect number without going overboard. (This is what I usually do when I go Christmas shopping). Here is a four-step plan you can use to create the perfect Christmas budget.

Step 1: Get organized and get real. Step #1.

It’s important to know what you want to spend your budget on and how much it will cost. The first step I take when creating a budget for the holidays is to create a list of all the people I need to buy gifts for. Do not forget to include other holiday purchases such as home décor, events that are far away, or local businesses.

After I’ve made my list, I check how much I spent the year before. If you have never created a budget for Christmas, this is a good way to start. Once I’ve got some rough figures, I start to think about what I can spend. If no budget is set by family or friends, then I create my own. Then I research and find gifts within the budget. It’s not necessary to spend as much money as in the past to give a meaningful present.

Step 2. Step #2.

It can be tempting to shop online using credit cards, especially with budgets tightening and 2020 being such a unique year that we might not go to the shops. This was not going to work for me. I chose to use Brightside as a budgeting tool to help me stay on track with my finances. Brightside is connected to your existing bank account, so I was able to transfer the exact amount I planned to spend on Christmas gifts into my Brightside Spend bucket.

With the Brightside spend card, I can shop online for free and with unlimited transactions. You can spend your money as you would with debit, but get cash back. You don’t run the risk of getting into debt, as you would if you used a credit card. The app notifies me every time I make a payment, and I can access it at any time to check how much money I have left. Brightside allows me to control my spending and avoid the temptation of adding on an item at the last minute when shopping online.

Step 3: Step #4.

The holidays are not the only time that passes. It can be difficult to balance your everyday budget with your holiday spending. Brightside is a great way to save money for other financial goals. Brightside lets you open 10 buckets, similar to checking or savings accounts but for free. You can name them, and you can move money into and out of them to save for specific goals.

Yes, I am still trying to save as I spend. Brightside also has a cool feature called Round Ups, which allows me to save a little extra money while I do my holiday shopping. Even small change can add up! You still have to pay your bills and put money aside for emergencies.

Step # 4. Step #4.

You are now organized and have a budget and plan in place to keep you on track. The best thing that you can do as a customer is to be patient and spend money with intention. It’s not worth buying something just because you think you should. Purchase them with purpose. Buy more meaningful items, such as shopping at local businesses and venues. Consider low-cost, or even free, options for your Christmas shopping list. This will satisfy your desire to buy gifts for those who are not as close to your heart.

Profit from upcoming sales, such as Black Friday or Cyber Monday. You can use Google to earmark products that you want to keep an eye on. This will alert you when the price drops.

SPREAD CHEER AND SAVE STRESS

We can still spread the holiday cheer even if we have to be more careful with our money this year. Brightside will help you to avoid having to fumble around with an Excel spreadsheet while your mask is fogging up your glasses in the middle a mall. Instead, you can check the app and see how much you still have to spend. They also help you to save money while you spend.