A holiday spending plan that holds up into January

A holiday plan has five parts: a budget, a list, some lower-cost ideas, a decision on how you'll pay, and a record of what you spend. A plan made ahead helps keep the spending inside the budget, and it takes about half an hour.

What you need

• Your monthly bills and income for the next few months
• A list of everyone you're buying for
• A notebook, a spreadsheet or a notes app

Steps

1. 1

   Count the usual expenses

   Account for all of your typical expenses first, so you don't come up short on bills or rent.

   5 min

2. 2

   Estimate hosting and travel

   Think about what else you'll spend on in the coming months, such as hosting a party or traveling to see family, and estimate those costs.

   5 min

3. 3

   Set the gift budget

   Subtract those from your usual budget, and what's left is what you have for gifts. Starting early lets you count what you'll earn before the holidays and how much you can save toward them.

   5 min

4. 4

   Make the list

   Write down the gifts you need and cross them off as you go. A personal rule, such as buying nothing that isn't on the list, keeps the total in check.

   5 min

5. 5

   Look for lower-cost gifts

   A meaningful gift can cost a fraction of a store-bought one, such as a homemade mix in a jar or a book of favorite recipes.

   3 min

6. 6

   Decide how you'll pay

   One rule is to bring only the cash you plan to spend. If you use a credit card, have a plan for paying the bill, and set the money aside in your budget.

   2 min

7. 7

   Track the spending

   Write each purchase down beside the list, and check the total so far against the budget.

   5 min

Why the tracking matters

Check from time to time that you're still on budget. Without a running total, it's easy to go over and not find out until the bills arrive.

An annotated example