Your dollar won't buy you as much this holiday season. Budgets are stretched thin, with inflation and high gas prices, so NBC 7 and Telemundo 20 are looking at ways you can celebrate the holidays without breaking the bank.
Every shopping season should start with creating a budget, but how do you estimate how much to set aside? Especially if you're not shortening your gift list? A recent survey by the National Retail Federation showed that 62% of shoppers say they'll cut back in other areas in order to not skimp on the holidays.
Step 1: Set a spending limit
Write down your monthly expenses and income, and figure out how much you can add to your holiday budget. Remember: Your expenses have likely grown in recent months because of inflation, so if it's been a while since you last did your finances, it's probably wise to do it again.
Step 2: Determine your holiday expenses
While this means writing down who you want to buy gifts for, it also includes planning other costs. such as travel, decorations and even charitable donations.
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Step 3: Review past holiday expenses
Look at your credit card and bank statements from last year to see how much you spent. It will also help show you if you missed any expenses while planning in Step 2.
Step 4: Assign money to categories
Decide how much money you're going to spend on each gift or person, and stick to it. Your friends and family won't want you going into debt just to get them a gift.
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Step 5: Consider cutting spending
You could draw names for gifts or do a secret Santa with friends and family. If typically host a holiday dinner, consider turning it into a potluck instead of buying all the food yourself.
