Creating a holiday budget really means creating a regular life budget with a category for holiday saving or spending. As you begin to think about your holiday budget, it helps to know what budgeting method works best for you.

The zero-based budget. This is where you have a plan for every dollar you bring in. First, calculate your monthly income, including any side hustles. Then list out your monthly spending for all your expenses and any savings goals you already have in place. If you have money left over here, or if you have room to cut from any miscellaneous spending categories or savings goals, throw that money into a holiday spending category. It may help to keep this amount in your savings, knowing how much is going in there each month to keep track of what you can take out at holiday season.

The 50/30/20 budget method. The 50/30/20 budget is a budgeting strategy that splits your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and debt reduction. This method was made popular by Elizabeth Warren and her daughter in their book All Your Worth: The Ultimate Lifetime Money Plan. It’s a simple guideline (not a hard-and-fast rule) to help you align your spending with your savings goals and financial health. Keep in mind the following:

Needs are things you can’t live without.

Wants are things you don't need but make life nicer, such as entertainment and fun.

Savings and debt reduction are your financial goals, such as paying off loans, building an emergency fund, or investing for retirement.

Now that you have a basic budgeting plan, here are some more specific tips for how to create a holiday budget.

1). Start planning your holiday budget early.

2). Review last year's holiday spending.

3). List your holiday expenses in categories.

4). Figure out your spending limits for each category.

5). Save throughout the year in a high-yield savings account.

6). Keep track of your holiday spending.

7). Understand the pros and cons of buy now, pay later plans.

8). Use a cash rewards credit card to earn rewards on your holiday spending.

9). Look for ways to free up money for your holiday budget.

10). Avoid Financial Scams During the Holiday Season.

• Avoid holiday shopping on public Wi-Fi. If you're booking flights or shopping online for gifts, make those transactions at home on your own password-protected Wi-Fi. Inputting credit card details through public Wi-Fi puts you at risk of a hacker getting your information and having their own holiday spree.

• Beware of email or text scams. A legitimate business or organization will never ask for your personal information; like your Social Security Number, credit or debit card numbers, or passwords over email or text messaging.

• Be wise with retail credit cards. If you are considering applying for a retail store's credit card, be wary of how they take your information. For example, paper applications can be lost or stolen, and often contain sensitive information like Social Security Number, address, and driver's license number. If you're unsure whether your paper application will be handled with care, err on the side of caution, and skip it.

• Monitor your account activity. Check your account activity, to make sure you don't see any unusual activity. It's just one more layer of protection to ensure that your money stays right where it belongs.