The Only Holiday Budget You Need To Simplify the Season

When we think about our holiday budget, usually the first thing that comes to mind is our finances. But today I want to talk to you about a more important budget, one that will help you simplify the season and truly enjoy it. It really is the only holiday budget you’ll need.

I absolutely love Christmas! It’s seriously my favorite time of year. I love all the foods, traditions, and picking out the perfect gift.

Because of this, it’s easy for me to go overboard in every area. Of course, when we go overboard, instead of our Christmas looking like a perfect movie image of happy families in front of the fireplace, we end up more stressed out and busier than ever.

It’s like playing a game of tug of war. While you try to maintain some sanity or desperately try to simplify, the pull of more keeps tugging at us.

4 Ways to Start a Holiday Budget to Help You Simplify the Season

The best strategy for winning the game of tug o’ war is to create a holiday budget! And I’m not talking strictly money here. The right holiday budget will ensure a Christmas filled with warm memories for our families while still holding on to our most treasured traditions.

Budget Your Expectations

I honestly believe that the number one thing that creates frustration is undefined expectations. It’s so easy to get caught up in our “ideals”. We pressure ourselves to be at every party, to participate in extra activities, and to reciprocate with the perfect gift.

Yet we crave peace and joy the most. The truth is the best way to make peace a joy a reality is by having clearly defined expectations.

There are two main causes of undefined expectations. It’s usually either a lack of structure and/or a lack of communication. Both of these are easily solved by taking some time to budget in a planning session and a family meeting. Without these budgeting sessions, you’re setting yourself up for failure and undue stress.

During your family meeting, take some time to plan and get real with what your expectations are. Then share your goals and hopes for the season. Likewise, listen to your family’s desires for celebrating the season.

Next, remove all unreasonable expectations! After, you can collaborate together on what you want the holiday to look like. This will help you set some clearly defined goals so that you focus your time and energy on the activities that matter most.

Set a Focus Budget

Now that you’ve budgeted for some reasonable expectations, it’s time to start budgeting for those activities that matter most. The reality is we have a limited amount of time. There is no way you can do everything and maintain a peaceful home.

So you need to determine what the activities are that matter most. What will you give your time and focus to? What activities will create the memories that you will cherish the most?

Those are the fixed expenses in your budget. They are the non-negotiables that need to be paid first because they are the things you want to give your full attention to.

Next, look at your variables. These are the things that you would like to do but aren’t absolutely necessary. Just as you only have so much money after your fixed expenses are paid, you only have so much time to focus or spend on your variables. This is the category of your budget that is easy to overspend in if you’re not careful.

Be purposeful in choosing what variable activities you will focus on and participate in. Remember, being fully present for what matters most to you is a well-drawn budget rather than being overspent doing all the things.

Overspending on your focus budget leads to overwhelm and stress which is the equivalent of emotional bankruptcy.

As much as we want to, it’s just not possible to be with everyone, and everywhere. A focus budget is what allows us to be fully present for what we truly love.

Eliminate those things you don’t want to do. These are the things you find yourself saying yes to even though your heart says no. Make sure you are taking care of yourself by being true to what your heart is telling you. Saying yes out of guilt or obligation prevents you from being there for anyone.

How you spend your focus this holiday season will determine the memories you make, ones that are cherished or ones that overwhelm you and make you glad it’s over.

Create a Budget For Your Time

It’s so easy for our calendars to get packed full during this time of year. Before we know it we’re spending all of our time going from one activity to the next, without being fully present for anything. The best way to avoid this is to create a time budget.

Create your time budget much like you create your focus budget. Sit down and make an honest evaluation of how you spend your time now.

Next, consider the extra time expenditures that are filling up your calendar. Consider things like family events, work events, school activities, and parties you’ll be hosting or attending.

Also, don’t forget to include extra time spent shopping, traveling (even around town), and anything else you spend extra time on during the holidays.

Are these activities how you want to spend your time? Will these activities cause you to go into emotional debt by causing increased stress? If so, you need to start prioritizing in order of what matters most to you. Then begin eliminating those things taking your time but not adding value.

Set up a Holiday Money Budget

When our finances aren’t in order, everything feels harder. The holidays make it so easy for our finances to get out of order.

This is especially true if you love giving gifts. However, nothing can ruin holiday memories quicker than having a ton of credit card bills arriving in January and finding you’ve way overspent.

Creating a money budget doesn’t mean you have to turn into Scrooge it’s about being realistic with what you have to work with. More often than not having a clearly defined budget is actually a relief because you know exactly what you can reasonably spend.

To create your holiday budget list all the extras you spend money on this time of year. In addition to the gifts you’ll purchase, make sure to include the costs of extra activities, special foods, any new decorations, and travel costs. Include anything you generally spend extra money on.

Now look at those costs and decide whether you can really afford them. If not, you need to start eliminating. We shouldn’t have to completely deplete our resources to enjoy the holiday season. In fact, you’ll find much more joy in the season if you don’t.

Saying “yes” to what brings you joy means saying “no” to what doesn’t! Creating your holiday budget will allow you to stop overspending and stop overdoing.

Not only that, you’ll gain time to prepare, time to relax, and time to spend with the people you love. In a season of excess use your budget to clear space for what matters most!