12/03/2025
Does your holiday budget make you want to cancel Xmas? Don’t let it. We have tips to keep your holiday budget in line.
1️⃣ Tweak your holiday to-do list. That means:
• Make a list of all holiday activities & their estimated costs. This includes gifts, events & traveling
• Are you budgeted for everything? If not, find something to cut.
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2️⃣ Reduce your costs by:
• Suggesting a gift exchange where you buy for one person instead of everyone
• Host a holiday potluck instead of a cocktail party
• Look for fun, but free holiday family activities
• Is Grandma’s house drivable? Make it a road trip and save on airfare
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3️⃣ Avoid credit cards and buy now/pay later apps
• Use credit cards for convenience, not for credit
• If you know you over swipe, withdraw your holiday budget in cash
• Control your impulses
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4️⃣ Learn the 50 | 30 | 20 budget rule
Here’s how it works:
• 50% of your income is for fixed expenses (mortgage/rent, food)
• 30% of your income is for you. Use it for the things you want, including vacations and entertainment
• 20% of your income is for saving, including retirement and an emergency fund
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Our holiday budgeting article includes helpful tools like budget worksheets and calculators to help you figure it all out. Check it out here: cfin.us/HolidaySpendingTips