What You Need To Set Up Your Holiday Budget
The holiday season is a time of joy and often, overspending. With the average American spending over $1,000 on gifts alone, it’s easy for finances to spiral out of control. Creating a holiday budget is the best way to avoid holiday debt and start the new year stress-free.
In this article, we’ll share 5 practical tips for setting up your holiday budget and explain how a payday loan or payday advance can help you handle unexpected expenses.
5 Tips For Setting Up A Holiday Budget
1. Be Honest With Yourself About Your Habits
When setting up a holiday budget this year, the first step is to take a look at what you spent last year. It’s the best indicator of what you’ll likely spend in total this year as well as what you spend on different categories.
If you start a budget early enough, you can start saving through the year or even for several months before holiday expenses kick in. Then you can prepare for next year by looking at what you spent this year and setting a financial goal for holiday savings.
2. Make A Comprehensive List Of Holiday Expenses
When people think about holiday expenses, they most likely think of gifts first. And that’s fair; nearly 97% of people say they buy gifts for friends and family. In addition to outlining how much you expect to spend on gifts this year, it’s equally important to consider all expenses when crafting a holiday budget.
This may include decorations for you and your family to enjoy at home (yes, that includes a Christmas tree), as well as outdoor décor like lights and lawn displays.
Are you traveling this holiday season? Include all related expenses (food, gas, lodging, plane and train tickets). Hosting a party? Be sure to outline everything that will be a part of that, especially drinks and food will run you.
3. Estimate Your Spending For Each Category
Once you’ve nailed down what you’ll be spending money on this holiday season, start creating your holiday budget by estimating how much you want to spend on the various categories.
Think of this as a first draft. Once you add up the expected expenses this year, compare it to previous years. Depending on your current financial status, you may want to pinpoint holiday expenses that you can either cut back on or eliminate altogether.
If you don’t plan to travel this year, see if you want to raise the estimates of a few other expenses or put that amount into savings.
It's also important to keep in mind other financial goals. If you are trying to pay off student loans, eliminate debt, or save for a new home or car for the immediate future, that should be considered when making your holiday budget this year.
4. Factor In Changes To Income
While many workers have a list of a few days off around the holidays, not all of them are able to take advantage of a paid vacation. If you fall into the latter category, be sure to keep in mind that time off without pay can make a strong impact on your holiday budget.
Also think about whether you expect to have an increase in income during the holidays, perhaps from side hustles and freelance or slightly less than you usually have because of reduced hours set by an employer.
5. Create A Holiday Savings Account Or An Emergency Fund
Your spending estimates will be just that — estimates. It’s always a good idea to not neglect savings during the holiday season. Saving a little bit each week can be easily integrated into a holiday budget.
And since financial emergencies don’t take a holiday break, a separate fund will help you cover unexpected costs.
How a Payday Advance Can Ease Holiday Financial Stress
Even with careful planning, financial emergencies can disrupt your holiday budget. In such cases, a payday loan or payday advance may provide relief.
A payday advance is a short-term loan designed for urgent expenses, like:
- Emergency medical bills
- Car or home repairs
- Unexpected travel costs
At Alabama Title Loans, Inc., you can apply for a payday advance of up to $500. Our simple process allows you to:
- Apply online with minimal paperwork.
- Receive approval in as little as 30 minutes.
- Get your cash the same day or the next business day.
Why Choose a Payday Loan During the Holidays?
A payday advance offers several benefits:
- Quick Access to Cash: Cover emergencies between paychecks.
- Flexible Use of Funds: Use the money for any urgent expense.
- Fast and Easy Application: Start online and get help when you need it most.
Get Started Today
Creating a holiday budget is an intelligent approach to keeping holiday spending in check this year. Unfortunately, a financial emergency can easily put a damper on a season that should be joyful. A payday advance may help.
Start your application online, visit us in-store, or call us today to learn more about our fast, reliable payday advance options.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.