How to stay on budget during the holiday season

If you’re on a strict budget this time of year, it can be tricky to not spend more than you should. One way you can achieve this is by implementing a zero-based budget.

What is it?

Glad you asked. It’s actually a simple concept: Income minus expenditures equals zero. When you’re budgeting for the holidays, you’ll want to know exactly where every dollar is being spent. Here’s how to make a zero-based holiday budget in three easy steps…

Start by writing down your total allotted income: For this example, we’ll say that you’ve got $1000 to spend. Before you start spending money, make sure that your total is going to be enough to cover everything that you want to do.

Jot down your expenses: Write down everything – including gifts, decorations, food, clothing, and anything else you can think of. Beside each line, write down how much you want to spend on each item.

It’s time to subtract:When you subtract your expenses from your allotted income, you want it to come out to zero. You may have to look over your list, maybe even check it twice (wink), but once you’ve got it balanced out, it’ll be less naughty and more nice.

If you stick to your plan, you’ll be right where you want to be come January. Happy Holidays!