The holiday season sneaks up on many of us every year. Between the parties, travel and presents, it can be easy to spend more than you planned. Last-minute Secret Santa exchanges or picking up an appetizer on the way to a Friendsgiving celebration can all add up.

Planning early — not in October but starting at the beginning of the year — is the best way to set yourself up for success come the holiday season. But if you haven’t gotten started yet, there’s still time.

While we all know setting a budget is the best thing to do, that can be easier said than done. No matter when you begin planning, there are a few tools and pieces of advice that will help you see that budget through and stick to it. That way, you aren’t paying off the holiday debt in the new year.

Creating a Budget That Works for You

When it comes to creating a budget, be honest with yourself. There’s enough stress during the holiday season, and you don’t want to add financial strain to your life. Start by looking back at last year.

• How much did you spend?
• Did you feel like you spent too much?
• Were you paying it back in the new year?
• Did you account for travel and all the parties you attended?
• Did you spend more than you’d planned on food or decorations because you hosted gatherings?

Use that information to plan for this year. It’s not just gifts you have to budget for. Don’t forget those other expenses.

Once you have a good grasp on last year, think about how this year might be different by considering everything from the current cost of similar items to changes in your plans. Figure out a budget number that includes all holiday expenses. Then, budget for 15-20% more to cover those last-minute items that you know will pop up, no matter how well you plan.

I recommend using an app or resource, such as the one on the Sunrise Banks website, to get started. There are countless free tools available that will help you both set the budget and then track your spending. It’s easy to set a budget and then completely lose track of it once the season is in full swing. Take five minutes at the end of each day, or 30 minutes each week, to enter all your purchases so you can see in real time if you’re staying on track. By using a tool and creating a record of expenses this year, you’re also setting yourself up for success next year. It’ll be even easier to look back and use the data to set next year’s holiday budget.

Determine Priorities and Set Boundaries

Buying presents for every person in your family or all your coworkers adds up fast. When making your budget, consider the following gift-giving strategies:

• Prioritize those you want to give gifts to.
• Set a limit for each person.
• Identify family or friends who may appreciate time together more than gifts.
• Write down gift ideas throughout the year as family and friends mention them.
• Begin making purchases when items are on sale or during special discount days.

Another thing I’ve done is to get creative with gifts. Maybe it’s a service like babysitting for a friend who doesn’t get a night out with their spouse often. Another idea is getting people together for a day of holiday baking. Many families also draw names and put limits on how much they can spend on the gift. All these tactics will save money in your budget while still creating a memorable experience.

Remember, it’s also okay to say no when it doesn’t work for you. If you have 10 parties and feel like it’ll be too much on your time and budget, prioritize what’s most important to you and see if you can set up time after the holidays to see those you said no to.

Credit Card Pros and Cons

Using credit for holiday purchases can be a slippery slope, but credit cards can be beneficial if you are careful and stick to your budget. Credit cards often provide benefits (points, cashback) that you can then use later. If you’ve already accumulated those benefits, you can even cash them out prior to the holidays to give you extra spending power. Some credit cards also offer tools that will categorize your spending, which can help you stay on budget.

Credit cards can also be advantageous for online purchases. If you use credit, money isn’t taken directly out of your checking or savings account, creating an extra level of security should you encounter any kind of breach or identity theft. It’s also easier to dispute a purchase when the money isn’t already gone.

If you plan to use a credit card, don’t forget to include the cost of interest when creating your budget if you don’t plan on paying it off in full immediately. This will help prevent unexpected financial strain in the new year.

Despite the potential benefits, credit cards aren’t a great choice for everyone. Again, be honest with yourself. Some people find it’s easier to stick to a budget if they set aside the exact amount they want to spend in cash. When the cash is gone, the spending is done.

The holidays are stressful enough; adding in self-inflicted financial stress will only make the season feel like more of a burden. Start planning early, embrace the alternatives and find ways to make the most of your money, so you’re ready to enjoy time with friends and family.

Use our financial wellness tools to plan out your holiday spending. Visit sunrisebanks.com/financial-wellness-tools to get started.

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