how to budget for the holidays
hey bestie!
The holidays are one of the most joyful times of the year, but they can also be one of the most expensive—and stressful! From gifts and travel to holiday meals and decorations, the costs add up fast, making it easy to overspend or feel stressed about money. Setting up a holiday savings fund can be a game changer, helping you avoid financial strain and enjoy the holidays. Let’s talk about how you can set one up and how it’ll give you peace of mind through the season!
why a holiday savings fund matters
Without a plan, holiday expenses can quickly add up, leaving you feeling overwhelmed. The temptation to overspend on “just one more gift” or that special holiday sale can lead to debt and post-holiday regret. Setting up a savings fund just for the holidays keeps you on budget, helps avoid debt, and relieves the financial stress that often comes with the season. By putting aside a little money over time, you’ll be ready for holiday expenses without dipping into credit or stressing over your bank balance.
A dedicated holiday fund with a set limit also gives you a clear spending boundary, so you can enjoy the season without overspending.
what is a holiday savings fund?
A holiday savings fund is simply a way to gradually save up for the holidays throughout the year. It’s an account or envelope (virtually, in Budget Bestie!) where you stash a little money every payday, building it up over time. By December, you’re ready to enjoy the season without scrambling to cover everything at once. Trust me—it’s way less stressful this way!
Personally, I set up a holiday savings envelope in my app, Budget Bestie, and add a little bit to it every payday. I love that in the app, I can set a goal amount and due date so it suggests how much I should add each time I budget to hit my goal! Watching my progress grow gives me that holiday peace of mind well before the season even starts.
how to set up a holiday savings fund in Budget Bestie
Setting up a holiday savings fund is simple. Here’s exactly how I do it in Budget Bestie:
1. set a goal amount
First, I figure out how much I’ll need for holiday expenses like gifts, food, and travel. Breaking it down by category gives me a clear picture of my total goal.
2. assign a due date
Starting early lets you spread out your savings over the year, but even if you’re starting later, you can still set a manageable target to save each payday. I love that Budget Bestie lets me set a due date and suggests how much to save each time I budget!
3. contribute regularly
Every payday, I put a little into my holiday fund. Even small amounts add up when you’re consistent. By the time the holidays roll around, I have enough to cover my planned expenses. Watching that balance grow is so rewarding!
avoiding common holiday budget pitfalls
Even with a holiday fund, spending can still get off track. Here are a few things to watch out for:
last-minute shopping
Waiting until the last minute often leads to impulse buys. Planning early gives you time to be intentional about what you’re buying.
forgetting small expenses
Don’t forget those little extras—like wrapping paper, cards, postage, and holiday activities—that can sneak up on you.
unexpected travel costs
If you’re traveling, add a little buffer to your fund for extra expenses like gas, parking, and food on the road.
tips for sticking to your holiday budget
Once you’ve set up your holiday savings fund, here are a few ways to stay on track:
set spending limits for each category
Break down your budget by category (gifts, food, travel, etc.) and set a spending limit for each. This makes it easier to stick to your plan without overspending.
focus on what matters most
The holidays are about meaningful moments with loved ones, not just things. Prioritizing experiences or thoughtful gifts over expensive items can help keep costs down.
shop early and look for deals
Shopping early lets you take advantage of discounts, which stretches your holiday budget further. Plus, it reduces the last-minute rush!
track your progress
I find it so motivating to check my progress in Budget Bestie. Watching my holiday fund grow each month keeps me excited and on track.
make holiday budgeting a year-round habit
One of the best things about a holiday savings fund is that it can become part of your yearly financial routine. Starting in January and setting aside a little each month means you’ll go into the holidays stress-free and fully prepared. By saving gradually, you can avoid the financial strain that often comes with holiday spending.
Setting up a holiday savings fund is such an easy way to stay in control of your finances and enjoy the season without worry. With Budget Bestie, you can track your goals, stay consistent, and make holiday budgeting feel fun. Happy saving, bestie, and here’s to a stress-free holiday season!
Hey, I’m Sasha, one half of the Budget Bestie team. After paying off $35k+ of debt with cash stuffing, I came up with the idea for this app to make cash stuffing simpler—without having to carry cash. Our app lets you budget on your own schedule and gives you full control of your money. Whether you’re just starting out or a seasoned cash stuffer, I’m here to share tips and tools that’ll make cash stuffing easier for you. Let’s do this, bestie!
