Foreword
The holidays are rapidly approaching, and people are rushing to department stores and malls to pick out gifts for their friends and family. Although the holiday season is a favorite time of many, it can be stressful if you are dealing with financial insecurity. Not to mention, individuals tend to overspend on presents in hopes that the recipients will be satisfied with their gifts. We all hope to provide awesome gifts to our loved ones this year, but you must avoid spending beyond your means. In this guide, we will show you how to budget your money for a financially prosperous holiday season.
How Much Should You Spend Altogether?
There are no official rules for how much you should spend on holiday shopping. Experts believe you should plan to spend about 1.5% of your annual income for holiday celebrations. Once you calculate your total budget, you can allocate a portion to food, travel, and other anticipated expenses. Circle the amount thats leftover. You now have a figure for your approximate holiday shopping budget. If possible, set these funds aside in a seperate savings account to refrain from exceeding your budget. Need extra cash for gifts? This site pays up to $25 per survey.
How Much Should You Spend on Each Recipient?
Since you have determined your total gift budget, your next step is to divide your budget into smaller parts. Rank your gift recipients from most important to least important. This will help you prioritize larger gifts for the people who are closest to you. Figure out how much of your budget you will distribute to each recipient’s gift, and shop accordingly.
What is The 50/30/20 Rule?
The 50/30/20 rule is a rough outline for money management. At any point in time, half of your take-home pay should be used for essentials, 30 percent should be used for leisure, and 20 percent should be funneled into your savings and debt reimbursement. Holiday shopping falls into the leisure category. If you can’t resist the urge to purchase extravagant presents, try to balance out your spending by cutting back on other discretionary purchases this month.
Last Minute Gifts
Have you ever been invited to a holiday party on short notice? Has a family member ever surprised you with a last-minute holiday visit, forcing you to frantically run out to the store for one last present? When you create a budget of any kind, it’s important to compensate for unforeseen circumstances. Make sure you leave a little room in your budget for an emergency gift run.