The Average Christmas Budget For Americans And How To Easily Create One
According to the Christmas spending statistics, the average Christmas budget in 2021 is expected to be about $998. How do others know how much money to spend for Christmas? They plan and budget in advance.
If you’ve never created a Christmas budget before, the task may sound a bit daunting, but it’s not as difficult as you might think if you follow our quick how-to guide to Christmas budgets. We begin by telling you the average Christmas budget for Americans and then walk you through a step-by-step guide to creating your own Christmas budget. Read on to learn more.
Read: 5 Ways Living With Less Can Give You More.
What Is The Average Christmas Budget For Americans?
According to the National Retail Federation, the average Christmas budget for American consumers was around $1000 in 2020. To put that in perspective, the median weekly salary was around $1000 as well before taxes. What this means is that most Americans are spending a little bit more than a week’s worth of work for holiday gifts alone.
Obviously, $1000 is a lot for the average Christmas budget, especially if you were only bringing in about the same amount a week. It is for this reason that a lot of people go into debt and feel their finances are out of control during the holiday season.
How To Create A Christmas Budget In 5 Simple Steps
To make the holiday season less stressful, it’s important to create a Christmas budget that works with your income and finances. What this means is that you should not just designate $1000 to your Christmas just because it is the average Christmas budget for others. Instead, create a Christmas budget for your family specifically, even if it is wildly different from the average Christmas budget.
1. Figure Out Your Regular Budget With A Net-Zero Plan
You can’t create a Christmas budget if you don’t have a basis to begin with. If you don’t already have a budget, create a budget with a net-zero plan. A net-zero plan means that every dollar you make is accounted for.
To create a net-zero budget, begin by figuring out your income. Then, subtract your savings and all your necessities, like rent and food, from your income. Once necessities are accounted for, designate the rest of your money to certain categories, such as entertainment, clothes, etc.
2. Make A List Of Everyone Who Needs Presents
Now, it’s time to think about Christmas specifically. Begin by making a list of everyone who needs presents and how much you expect to spend on each person. It may be helpful to have a spouse or close friend look over the list to make sure you aren’t forgetting anyone. This will be the basis of your Christmas budget.
3. Add A Christmas Gift Category To Your Budget
Once you know how much you want to spend on Christmas shopping, add that category to your overall budget. You should be paying for your Christmas items using the money left over after you add to your savings and necessities. Even with the Christmas category, you want your budget to have a net-zero design.
4. Keep Track Of Your Spending
While you are Christmas shopping, keep track of all your spending. If you don’t keep track, you will easily blow your budget. You can use finance apps or the pen and paper method to keep track of all your spending.
5. Adjust And Save Accordingly
As you are spending, you may need to adjust your budget a little bit. That is perfectly normal and nothing to sweat about. Just adjust the budget and save accordingly.
How Payday Loans Can Help You This Season
While you’re trying to get your finances in check this holiday season, you might want to remember short-term loans, such as payday loans. Although payday loans are not a good way to fund your Christmas gifts, they can help you out if you are strapped for cash on your necessities this holiday season.
For example, many people find themselves unable to pay their rent or utility bill because they overspent on their Christmas budget. In a circumstance like this, payday loans in Idaho can help to pay their necessities. If you find yourself in this scenario, just remember that a payday loan is an option.
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Hopefully, you will not need a payday loan if you successfully create a Christmas budget and stick to it. So, make sure to be diligent in recording your spending and sticking to your budget, no matter how tempting it may be to overspend.
And if you find yourself strapped for cash, remember that you can resort to Idaho payday loans to secure your funds until your next payday. Contact us today for more information at 1-800-514-2274 or submit a short inquiry on our website to get started right away!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.