Blog Post #25

Chapter 24: Budgeting 101: Sis, Don’t Go Broke During the Holidays!

Ladies, I will not lie; I do not particularly appreciate sitting down and budgeting.

It’s not my favorite thing to do, but it saves me from many overdraft fees!

And, as we get closer to the holidays, budgets are essential!

They help you not have negative accounts, keep your peace of mind, and still purchase things we have on our holiday lists.

Christmas is one of my favorite times of the year, but it can also be one of the most financially difficult days out of the 365 days we receive.

Therefore, I wanted to offer some GEMS on how we can conquer the absurdities with high-end costs around the holidays.

The first step is to list the things you need for the holidays. Fold your paper into three. On one side, list whom you’re buying for this season. In the middle, put the things you need to get them, and then in the final column, put the extra things you want to get.

Once you have created a list of whom you’re buying for and what you’re purchasing, it is easier to figure out costs.

Don’t wait until the last minute, ladies! Purchase over time. Therefore, you are not using one paycheck to get everything, and instead are using small dividends from each.

Black Friday is upon us. Therefore, get that shopping list ready, and please don’t hurt anyone in the process. There is usually extra stock in the back. All you have to do is ask!

But, back to the lecture at hand. Once you have made a list, it’s time to check your wallet!

Here is the part that everyone dreads but is an essential step in your holiday shopping or even living month to month.

You have to look at the amount of money you make each month, tally up those expenses, and tally up what you will have left over.

I am forever indebted to the 50/30/20 Budget rule (Whiteside, 2022), although sometimes I don’t always remember to do it!

In the 50%, you put all your expenses for the things you need. For example, we sometimes forget to pay rent, school fees, or even our phone bills during the holidays.

You can also put in this section the things you need to buy for the holidays, like food and gifts for your family.

Next comes your wants! For example, a list of wants include

getting your nails done,
getting Starbucks before work,
eating out, or
even getting your car washed.

You can also put in this section those extra decorations you don’t need from Home Goods but will look cute in your living room for the holidays.

These items will take up about 30% of your budget.

Lastly, you will want to use 20% of your budget towards your savings and any debts you have to pay off. Sometimes we will use our credit cards to help pay for gifts, which can be helpful! But please don’t max your cards out, and don’t forget that you will have to make payments back.

Sometimes during the holidays, we forget we have student loan debt or other debts! And, let me let you know those debt collectors still want their money before December 25th. Therefore, please don’t forget to set that money aside!

An Independent Grown Woman stays ready, so she doesn’t have to get ready!

Now, this may seem easier said than done so I will give an example.

If you make $3,500 a month. 50% would be $1,750, which will go to your needs. You get to determine what these needs are each month, week, or a quarter of the year, depending on how often you complete your budget.

$700 will go to your savings and debt, which is 20% of your monthly income.

$1,050 will go towards your wants!

I have included below an IHateAdulthood Budget Planner that helps you address your monthly income, where the revenue comes from, your monthly expenses, monthly savings, and holiday expenses to make the process easier!

If you use it, please let me know if it is helpful! And I will update you post-the-holidays to let you know if it made it easier for me this holiday season!

I know this can be overwhelming, so I also wanted to offer a few tips to help make this process less stressful.

1. Do it in increments

Don’t put your budget together in one day. Split the budget into two days so you don’t become overwhelmed but get the job done.

2. Don’t be afraid to start over

If budgeting doesn’t work for one week or this holiday season, don’t be afraid to try it again! It takes practice, and remembering a budget will not be perfected in one setting.

3. Be Kind to yourself!

You work hard! So, if by chance you need to order Thai, Chinese, or Caribbean food because you’re too tired to cook, then do that, baby! Just remember to get back to the budget the next day!

I hope today’s discussion will help you become successful in budgeting and getting ready for the holiday season!

I will bring this conversation back up before the end of the year, so we can budget to have a successful 2023!

Let me know in the comments if you found any of the suggestions above helpful!

Peace + Prosperity, as Always,

Jadis DeShong-Venay