Holiday presents wrapped in red and white.

4 Tips to Plan Your Holiday Spending

Whether you are ready or not, the 2021 holiday season is fast approaching. This time of year is joyful for many people, but can bring added stress as well. This is especially true when you are unsure of how to budget for the holidays.

Holiday budgeting does not have to be a chore. In fact, if you make and stick to a budget, you may be able to eliminate some of that holiday stress! To help, we have assembled some tips and tricks on how to create a holiday budget plan that works for you.

How to Budget for the Holidays

1. Make a Budget

The Consumer Financial Protection Bureau reminds us that it is important to create a budget well before the holiday shopping starts. Consider your regular monthly expenses such as:

  • Rent/mortgage
  • Utilities such as gas, electric, water, phone plan, and wifi
  • Food/drink
  • Transportation
  • Extras such as subscription services, streaming services, gym memberships, etc.

Be thorough with your monthly expenses, and try not to leave anything out. Follow this by calculating your income. Compare the two and see how much you have left over. If you have some wiggle room, save a little bit and allot the rest for holiday gifts.

2. Plan Holiday Spending By Person

Not everyone will get the same caliber of gift for the holidays. Holiday budgeting means knowing who you are buying gifts for, and how much you can spend on each person. Essentially, make a list and check it twice.

3. Plan Your Holiday Spending Methods

Decide how you will purchase gifts. Some people prefer to use debit or cash, while others plan to use their credit card or afterpay options. Different options work for different families, so decide which is best for you.

Don’t forget to consider that:

  • Credit cards often have reward points or cash back options.
  • Credit and debit cards leave an electronic trace in the event that you need to return or exchange an item.
  • It is easier to stick to your budget with cash.

4. Take Advantage Of Online Shopping

When you shop online, you can compare prices to find the best deal for the product you want to buy. With Black Friday sales, free shipping codes, and price match options, you can maximize your holiday spending budget.

Holiday Spending Statistics You Should Know

  • In 2020, 73% of holiday shoppers bought gifts online (American Research Group).
  • In 2019, the average holiday spending budget was $942. This is the highest it has ever been (Gallup).
  • Black Friday shopping has dropped in popularity in recent years. While 59% of consumers in 2015 planned to do most of their holiday shopping on Black Friday, only 36% said the same in 2020. This is not just because of the pandemic—the rate has been similarly low since 2017 (Statista).
  • 66% of shoppers in 2020 said that they would wait for something to go on sale, rather than paying full price. Another 20% said it depends on the gift, while only 14% planned to pay full price (American Research Group).

Trajan Wealth Is Here For You This season

If you are ready to build your wealth and assemble a reliable financial plan, Trajan Wealth is here to help. We have comprehensive financial services that can benefit anyone, at any time of year. Learn what makes us unique. And when you’re ready, reach out to see how we can help you feel confident about where you are financially, as well as where you’re headed.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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