The holidays are quickly approaching, and with them can come excitement, as well as some financial pressure and many opportunities to overspend. Having upfront clarity around your finances and budget can save you stress later on.
Here are seven key numbers to check before the season kicks into high gear.
1. Fixed Monthly Expenses: Know What Has to Be Paid
Before you dive into holiday plans, get crystal clear on what absolutely must be covered each month. Rent or mortgage, utilities, transportation, insurance, childcare, etc., are the core of your financial stability. When you know these numbers upfront, you’re not guessing about how much you can spend on gifts or travel. It also keeps you from accidentally cutting into money you’ll need later on in the month. Using a budgeting worksheet like the one we’ve created here can help you map out your expenses and see where you have room to spend. A solid list of must-pays helps you set holiday boundaries with confidence instead of guilt or stress.
2. Net Income: Focus on the Money You Actually Take Home
It’s easy to make decisions based on your salary, but your bank account doesn’t run on your salary; it runs on your take-home pay. Once taxes, insurance, retirement contributions, and other deductions are pulled out, you’re left with your real spending power. If you haven’t checked that number recently, now’s the perfect time. Knowing your net income helps you set a realistic holiday budget, avoid overspending, and plan purchases that fit your actual cash flow.
3. Total Debt: Don’t Add More Than You Can Handle
Take a quick look at what you already owe before adding anything new to the pile. Holiday sales can be tempting, but high-interest balances will follow you into the new year, and they don’t care how nice the gift was. Knowing your total debt gives you a clear sense of what room you do or don’t have to take on more. If you choose to use credit, do it intentionally, not reactively.
4. Credit Score: Check It Before Big Purchases
If you’re planning a larger purchase or thinking about opening a new credit card for rewards or holiday deals, take a moment to look at your credit score first. Your score helps determine what rates and approvals you’ll get—and it’s easier to work with the score you have than repair the score you accidentally damaged.
Also, be mindful when opening multiple lines of credit at once. Every time you apply, lenders run a hard inquiry, which can temporarily lower your score. One inquiry isn’t a big deal, but several in a short period sends a “Hey, what’s going on over there?” signal to lenders. Keeping your applications limited and intentional protects your score and keeps your financial options open.
5. Emergency Fund: Protect Your Safety Net
Your emergency savings exist to keep you steady when something unexpected hits. Life doesn’t check your calendar before it throws you a curveball. Car trouble, medical bills, or a sudden loss of hours at work can all happen unexpectedly. That’s why it’s important not to drain this fund just to cover holiday spending. Keeping that cushion in place gives you confidence and stability, even when the world gets messy. Protecting your safety net is one of the strongest financial habits you can carry into the new year.
6. Monthly Savings Rate: Keep the Habit Going**
Saving during the holidays feels tough, but this is one of the most important months to stay consistent. Even a small amount keeps your financial habits alive. Your savings rate isn’t about hitting the perfect number; it’s about showing up for your goals, even in a busy season. A small win now sets you up for bigger wins later.
7. Retirement Progress: Keep Your Long-Term Goals in View
The end of the year is a great checkpoint for your long-term plans. Look at what you’ve contributed so far, how consistent you’ve been, and whether you want to adjust anything for the coming year. Retirement may feel far away, but your future self is counting on the choices you make right now. Even a quick review can help you feel grounded and confident heading into the new year.
The holidays don’t have to be a financial rollercoaster. With financial clarity and a solid plan, you can celebrate the holidays with confidence and calm.