Ah, November. The month where things start to ramp up before the end of the year Christmas celebrations. This is the time where your inbox starts filling up with deals, discounts, and “last chance” offers. It’s the unofficial kickoff to the holiday spending season, with Black Friday, Cyber Monday, and the Christmas countdown looming large. But before you swipe your card or click “add to cart,” it’s time to hit pause and do something powerful: build a holiday budget.
Yes, we said the B-word. But trust us, a holiday budget isn’t about restricting your joy. It’s about directing your money with intention so that you can enjoy the season without the stress hangover in January. Let’s dive into how you can create a holiday budget that you’ll actually stick to, one that leaves room for festive fun and financial peace.
Step 1: Get Clear on Your “Why”
Before crunching numbers, ask yourself: What do I want this holiday season to feel like?
Is it about connection, rest, giving, joy, or all of the above? Identifying your values helps filter out unnecessary expenses. If your priority is quality time with loved ones, do you really need to buy extravagant gifts for everyone? Maybe a cozy movie night and homemade cookies are more on-brand (and on-budget) for you.
Your budget should reflect your intentions, not just your impulses. So grab a journal or your notes app and jot down what you want most out of this holiday season.
Step 2: Review Your Financial Reality
Let’s get honest (and no, we won’t judge). How much room do you have in your finances to spend this season?
Take a look at:
- Your current income
- Essential bills and obligations
- Existing savings (including any “holiday fund” if you’ve started one)
- Any extra income expected (bonuses, side hustles, etc.)
Once you have the big picture, determine how much you can allocate to the holiday season without dipping into debt. That number is your total holiday budget. It might be smaller than you hoped, or it might surprise you – but either way, it’s your starting point for planning.
Step 3: List ALL Holiday Expenses (Not Just Gifts!)
Most people only budget for presents, but the holiday season has lots of hidden costs:
- Gifts (family, friends, coworkers, teachers, Secret Santa, etc.)
- Wrapping paper, cards, postage
- Travel (petrol, flights, accommodations)
- Food (holiday dinners, baking supplies, eating out)
- Decorations
- Outfits for events
- Charitable donations
- Activities (theme parks, holiday events, movies, etc.)
Make a master list of every potential holiday-related expense. Then, assign a dollar amount to each category based on your total available budget.
Pro tip:
Pad your budget with a small “miscellaneous” fund. Because something always pops up last minute.
Step 4: Prioritise and Trim the Fat
If your expenses outweigh your budget (and they often do), it’s time to get creative.
Start by ranking your categories from most important to least. Then, look for ways to reduce costs without reducing joy:
- Gifts: Can you do a Secret Santa or homemade gifts instead of buying for everyone?
- Travel: Could you drive instead of fly, or stay with family instead of booking a hotel?
- Food: Plan goodies, bake from scratch, or set limits on how many “special” meals you’ll eat out.
- Decor: Use what you already have or DIY with family for fun, memory-making moments.
Budgeting is less about cutting joy and more about being intentional with how you spend.
Step 5: Choose Your Tools
Now that you know what you can spend and what you want to spend it on, it’s time to track it. Some helpful tools:
- Budgeting apps: Your bank’s app can help with this too.
- Spreadsheets: My budgeting/spending plan spreadsheet, or, good ol’ Google Sheet can work wonders
- Cash envelopes: Go old-school and allocate physical cash (if it still exists where you are) for each category
- Holiday Binder: Keep track of receipts, ideas, and spending in one festive place
Whatever you use, the key is to track every dollar as you go. Awareness is powerful.
Step 6: Shop Smart (and With a Plan)
Here’s where the rubber meets the road – Black Friday, Cyber Monday, and every festive display designed to tempt your wallet.
To stick to your budget:
- Make a gift list before you shop – with names, gift ideas, and price limits
- Use price comparison tools like PriceMe
- Avoid impulse buys by waiting 24 hours before clicking “buy now”
- Limit your exposure to ads by unsubscribing from promo emails or using browser ad blockers
- Set a timer when shopping to avoid endless scrolling
And remember: A great deal is only great if it fits your plan.
Step 7: Communicate Openly
Don’t be afraid to talk to your friends and family about your financial boundaries.
- Suggest spending limits for gift exchanges
- Offer experience-based gifts instead of pricey items
- Let loved ones know you’re focusing on financial wellness
You might be surprised how many people are relieved to scale back and focus on what really matters.
Step 8: Stay Grounded in Gratitude
One of the best ways to resist overspending is to regularly remind yourself of what you already have.
- Start a daily gratitude list during November
- Reflect on holiday memories that didn’t cost a dime
- Celebrate your progress (even if your budget isn’t perfect)
Mindful spending starts with mindful living. The more you align your spending with your values, the more meaningful the season becomes.
Final Thoughts: Make It a Tradition
Creating a holiday “budget/spending plan” isn’t just a one-time thing – it’s a tradition in the making. Each year, you’ll get better at planning, prioritising, and enjoying the season with less stress and more satisfaction.
This November, give yourself the gift of peace of mind. Spend with intention, stick to your plan, and start the new year without a financial hangover.
You deserve to enjoy the holidays and feel good about your finances. Now go sip that peppermint mocha, you’ve got a plan!
