Winter can be a difficult time. Not only do those of us in colder areas of the country have to deal with piles of snow in our driveways, icy roads, and bone-chilling cold, but we also have to worry about rapidly rising energy costs in order to stay warm each winter. Add in holiday expenses, and winter can quickly become the most expensive season of the year.

Accurately predicting your budget needs for the upcoming winter season can help alleviate some of the financial pressure you and your family may experience. Planning ahead and recognizing problem areas in your winter finances will allow you to begin saving early, providing a winter budget “cushion” that can see you through to spring.

Here are a few tips for calculating your winter budget:

• Put a Number on Winter Heating Costs: For most of us, the biggest winter bill is by far our heating costs. Regardless of whether you use oil, gas, wood, or electricity to stay warm, these costs have been steadily increasing in recent years. Average heating costs in Massachusetts topped nearly $3,000 per household this past winter, and early predictions indicate they could be even higher for the upcoming winter. A safe bet for calculating the upcoming winter’s heating costs is to take your total heating costs for last winter and add 20%.
• Budget for Snow Removal: Snow removal expenses are often overlooked when calculating a winter budget. But all it takes is a few large snow storms to put a large dent into your wallet. Plan on a minimum of eight winter storms requiring snow removal in your driveway for the upcoming winter. Depending on the length of your driveway, most plow operators charge around $25 per storm, meaning you should budget at least $200 for plowing. If your region receives more or less snowfall than the nation’s average, you may want to adjust this number accordingly. Also be sure to factor in the money you give the neighbor’s kids to shovel your front walkway.
• Don’t Forget Christmas: Plan your holiday gift giving expenses and make sure these are included in your winter budget. Consider setting up a “Christmas Club” savings account to set aside money each month of the year for use towards holiday gifts. This will relieve some of the pressure on your finances when the snow starts flying and the Christmas decorations start popping up.
• Include Vacations: Ski vacations, trips to see the In-Laws, or island getaways help break up the monotony of the cold winter months. Be sure to include any travel in your winter budget to make it as accurate as possible.

Now that you have your complete winter expenses compiled, divide the total number by six (the average cold season from October – March) to come up with a monthly figure. Although the number may frighten you, planning ahead and saving towards your winter budget needs will ensure that you make it through to spring with a minimum of financial difficulties.

Related Posts:

1. Setup a Christmas Club Account for Next Year’s Gift Giving
2. The 6 Steps to Making a Budget That Works
3. How to Use Your Credit Card this Holiday Season Without Getting a “Hangover”
4. Putting Your Budget Into Action
5. Get a Roommate to Pay off Your Debt