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Navigating the Festive Wallet

The holiday season is a time for celebration and giving, but it can also be hard on your finances. From donations and gifts to food and travel, costs can quickly become overwhelming and lead to feelings of stress. Organizing a holiday budget is a great way to keep your traditions while maintaining your financial goals. Here are a few tips to get you started:

  1. Determine your goal. Making financial decisions can be exhausting, but if there’s a light at the end of the tunnel it can be easier for you to stay on track. Ask yourself why you’re budgeting. Is it for a down payment on a home or to meet your goal of becoming debt-free? No matter what your reason, make sure to keep this motivating goal at the center of your efforts.

  2. Create a list of categories and anticipated expenses. Review bank statements or receipts from last year’s holiday season and determine if these expenses could be reduced or removed this year. Don’t compromise on your non-negotiable spending habits, such as traditions or donations to local charities. Instead, limit costs in other areas so you don’t experience poor mental health.

  3. Set spending limits for each category. Be realistic and don’t try to budget more than you have available. Most importantly, stick to these limits. Consider using the 50/15/5 guideline. Use a portion of the remaining balance for your holiday budget.

  4. Explore alternatives for purchases and donations. It truly is the thought that counts! Try shopping at discount stores or crafting homemade gifts for your loved ones. If donating to a local charity, consider giving a small portion of your income or collecting high-demand items you may already have at home, such as warm clothing, shoes, toys and food items. You can also give your time and skills to a cause you care about by volunteering.

  5. Track your spending. Simply write down your spending in a notebook or use a budgeting app on your phone to help you stay on track with your category limits. Don’t forget to give yourself flexibility, things don't always go according to plan, so be prepared to adjust your budget as needed.

  6. Review your budget regularly. Consistency is key in any good budget. Consider setting time aside each week to evaluate your progress and ensure you’re still on track to reach your financial goals. If you’re not where you want to be or your financial situation changes, you may need to adjust your spending limits.

Setting a budget is a great way to ensure you stay on track to meet your financial goals, while also enjoying all the holiday season has to offer. Don’t forget to give yourself a pat on the back every now and then. The goal is to become aware of your spending habits and make positive choices as often as possible – not to feel overwhelmed or deprived.

Looking for more information? Check out these Fidelity saving and budgeting money resources. With a library of articles and videos, you can learn about saving methods, cutting expenses and building a financial plan. Don't forget to register for this month’s Wealth Webinar Wednesday focused on setting goals and habits that stick! You can also take advantage of their free wellness check-up and 1:1 financial consultation, which allows you to speak with a dedicated representative to discuss your savings goals.

Written by: Mackenzie Reulein

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