Christmas is a one-day event which can cost a lot of money to many families.
Avoid getting into debt this Christmas by having a budget for Christmas.
Start planning your Christmas budget as early as you can so that you can save money when you have more time.
Here are questions you need to ask yourself when setting your Christmas budget.
1. What Are Your Christmas Expenses?
Work out you Christmas expenses these are things that you will spent money on such food, presents, clothing and traveling cost
Christmas food can cost a lot and let’s admit it during, Christmas we all like luxury food from luxury turkey to delicious Christmas pudding.
Make a list and work out what items you will need, where you are going to buy them and how much they are going to cost.
It’s much easier to start saving money for food once you have a budget for your Christmas food.
Make a list of all the people you are going to buy Christmas presents. Against each person’s name write down how much you are doing to spend on their Christmas presents.
Add the totals together that should be the total you intend to use on Christmas presents.
Most people travel a lot during the festival season there are many parties during this time of the year and some people travel to see their loved one.
And of course traveling cost money, set a budget for all the traveling costs during Christmas season.
Are you going to wear something nice on Christmas day or are you going to go to any Christmas party?
If you are going to need new items of clothing make a budget for this as well.
2. Can You Reduce Your Christmas Expenses?
If you are tight on money ask yourself if you could reduce your expenses. For example, can you trim down your christmas gifts to just a few people or can you reduce the amount you are spending on Christmas?
You can also save money by buying food ahead and making use of offers to save money.
Thinks of other simple ways to reduce your overall Christmas budget,this could be cooking your own food to reduce the amount you will spend on food instead of buying ready made food.
3. How Long Are You Going To Save For?
It is also important to know how long you are going to save money to cover all your Christmas expenses. The earlier you start the better.
Some people prefer to save as early as January where as some leave it till it’s even late to save any money.
4. How Much Are You Going To Be Saving?
Work out how many wages or salaries will you get before it’s Christmas so that you can calculate how much money you are going to save weekly or monthly.
For example, say you are paid monthly on the 15th of each month. You are planning to start saving up from August your estimated Christmas expenditure is £500.
This means you have 5 months of saving money and each month you will be saving £100 to reach your Christmas savings goal.
5. Where Are You Going To Put The Money You Are Saving For Christmas?
After working out how much you are going to be saving monthly or weekly you need to know where you are going to put the money you save.
Are you going to set up a direct debit or standing order so that it deducts money from your current account to your saving account?
Or are you going to put all of your money in a piggy bank
Start planning your Christmas early, set up a budget for Christmas and start saving money for a happy, stress-free Christmas.
Over to you …
Have you started saving up for Christmas yet?
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