Create a Budget to Survive Holiday Shopping – NBC 7 San Diego

Your dollar won’t buy you as much this holiday season. Budgets are stretched, with inflation and high gas prices, so NBC 7 and Telemundo 20 are considering ways to 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 don’t shorten your gift list? A recent National Retail Federation survey showed that 62% of shoppers say they will cut back on spending in other areas so they don’t 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 vacation budget. Remember: your expenses have probably increased over the past few months due to inflation, so if it’s been a while since you’ve done your finances, it’s probably wise to do it again.

Step 2: Determine your vacation expenses
While that means writing who you want to buy gifts for, it also includes planning for other costs. such as travel, decorations and even charitable donations.

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Step 3: Review past vacation spending
Look at your credit card and bank statements from the last year to see how much you’ve spent. It will also help you know if you missed any expenses while planning in step 2.

Step 4: Assign money to categories
Decide how much money you are 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 give them a gift.

Step 5: Consider cutting your expenses
You can draw names for gifts or make a Secret Santa with your friends and family. If you typically host a holiday dinner, consider turning it into a potluck instead of buying all the food yourself.