COLUMN: Fall into a holiday budget before the holidays fall on you

September has arrived, and if you are anything like me, you may still be trying to figure out how summer went by so quickly! School is back in session, fall activities are filling the calendar, and suddenly the holidays don't seem quite so far away. Before we know it, we will be talking turkey, making Christmas lists, attending holiday gatherings, and wondering how December got here so fast.

The good news? You don’t have to wait until December to figure out how you’re going to pay for it all. September is a great time to make plans.

Purdue Extension Health and Human Sciences encourages individuals and families to take a closer look at where their money is going, identify spending habits, determine priorities, and create a spending plan that fits their goals. A budget isn’t about never having fun or saying “no” to everything. It’s about telling your money where you want it to go instead of wondering where it went!

Start with what matters most

Before you start making a shopping list, think about what you want your holiday season to look like.

Is it important to have a big family meal? Do you want to travel? Are there certain traditions your family looks forward to every year? Do you want to purchase gifts for a large group of people?

Write down the things that matter most and build your budget around those priorities. When you know what is important, it becomes easier to decide what you can skip.

Give yourself a holiday spending limit

Look at your income and regular expenses and decide how much you can realistically set aside for holiday spending.

Then break that amount into categories such as: gifts, food and special meals, travel, decorations, activities and entertainment, charitable giving, and other holiday expenses.

Don’t forget those expenses that tend to sneak up on us. Wrapping paper, teacher gifts, stocking stuffers, baking supplies, party food and last-minute purchases can turn into a surprisingly large bill.

Watch for “spending leaks”

Purdue Extension uses the term “spending leaks” to describe money that can slip away through unplanned or thoughtless purchases. In Purdue Extension programming, participants have identified spending leaks and then used that information to make changes that better fit their financial goals.

This month, pay attention to where your money is going.

Are you making extra trips through the drive-thru? Ordering things online because they are on sale? Buying something simply because it’s a good deal?

A sale isn’t really saving money if you don’t need the item in the first place!

Try the “wait before you buy” rule

Holiday advertising is designed to make us want things, and want them right now. Before making an unplanned purchase, give yourself some time to think about it. Ask yourself:

- Do I need it?

- Do I want it?

- Does it fit my holiday budget?

- Would I still buy it if it weren’t on sale?

Sometimes a little time is all we need to decide that something can stay on the store shelf.

Start saving now

Even small amounts can help. If you have a specific amount you want to spend during the holidays, divide that amount by the number of weeks you have left and start setting that money aside.

The goal isn't perfection. The goal is preparation.

A little planning now can mean less stress later, and hopefully fewer January credit card surprises.

Most importantly, remember that the holidays aren't measured by how much money you spend. Some of the best traditions are free: watching Christmas movies together, playing games, baking as a family, driving around to look at lights, volunteering, or simply spending time together.

And if you need a little help putting the brakes on those “I deserve this!” purchases, stay tuned! I will be presenting a program in October called “Curb Your Urge to Splurge” on October 19. More details will be coming soon, so keep an eye out and get ready to take a closer look at your spending habits and your financial goals!

Until next time, remember: A little planning today can save you a lot of stress tomorrow!

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