Holiday Financial Check-In: A Simple Guide for Beginners

Monika Elguezabal |
Categories
holiday budget

The holidays are here! It’s a time for family, food, fun, and maybe a little bit of spending. But before you dive into the season’s excitement, it’s important to pause and take a quick look at your finances. Without a little planning, holiday expenses can sneak up on you and leave you with stress instead of joy once the New Year rolls around.

Don’t worry—this holiday financial check-in is for beginners, so if you’re new to budgeting or money management, I’ll guide you step-by-step on how to stay on top of your spending this season. Let’s break it down into manageable steps so you can enjoy your holidays without worrying about finances.

1. Plan Your Holiday Spending

Before you start shopping or booking travel plans, it’s important to know what you can afford. Take a look at your current financial situation and set a clear budget for the holidays. Break it down into categories like gifts, food, travel, and entertainment.

For example:

  • Gifts: $200
  • Food: $100
  • Travel: $300
  • Entertainment: $50

Creating a list and setting limits for each category will help you avoid overspending. If you’d rather not go old-school with paper and pen, there are free apps or even simple Excel spreadsheets that can help you track your spending in real time. Having a list also is going to tell you what not to buy. For example, imagine you’re shopping (it could be in a store or online), and you see a $50 item on sale for $20. You may think it’s a good deal. But if it’s not on your list, are you saving $30 or are you spending $20?[1]

2. Review Your Purchases

As you start making purchases, keep an eye on where your money is going. Check your receipts, and don’t forget to review your bank statements. It might sound like extra work, but this helps you stay on track with your budget and avoid any surprises. If you’ve overspent in one category, you can adjust by cutting back somewhere else. A good budgeting tool or app can make this process much easier.

3. Check for Spending Patterns

Once you’ve done some shopping, look for any trends in your spending. Did you spend more on gifts than you planned? Were there any surprise costs that popped up? Comparing your actual spending to your budget will give you a good sense of where you went right (or wrong).

If you overspent in some areas, don’t be hard on yourself. Think of it as a learning experience for next time. The goal here is to understand your spending habits so you can adjust for the future.

4. Planning for a Financially Healthy New Year

As the year winds down, it’s the perfect time to think about your finances for the next year. Here are some simple goals to get you started:

  • Set Clear Financial Goals: Maybe you want to save $500 by the end of next year, or pay off some credit card debt. Whatever your goal is, write it down and keep it in mind as you plan your finances.
  • Create a Savings Plan: If you don’t have an emergency fund, now’s the time to start! A good rule of thumb is to save enough to cover three to six months of living expenses. Start small and build up over time.
  • Review Your Debt: If you have any debts, make a plan to pay them off. Focus on paying off the high-interest ones first, like credit cards.
  • Adjust Your Budget: After seeing how you did this holiday season, you may want to tweak your budget for next year. A new year means a fresh start, so allocate your money wisely and create realistic spending limits.

5. Stay on Track: Tips for Success

  • Use Budgeting Tools: There are plenty of free apps and tools out there that can help you track your spending. Mint and YNAB (You Need A Budget) are popular choices for beginners. They’ll help you keep your expenses in check.
  • Set Reminders: It’s easy to forget about your finances when life gets busy. Set up regular reminders to review your budget and spending, even if it’s just once a week.
  • Stay Flexible: Life happens, and sometimes things don’t go as planned. Be ready to adjust your budget if needed, but always keep your long-term goals in mind.

Taking a little time to plan and check in on your finances this holiday season will help you start the new year on a better financial note. With just a few small steps, you can enjoy the holidays without stressing about your money.

Remember: It’s okay to start small. You don’t have to have everything figured out all at once. As you build better financial habits, your confidence will grow, and you’ll be more prepared to tackle any financial challenge that comes your way.

🎄Happy holidays and happy budgeting! 🎄