If you are looking to create a Christmas budget, one that is simple and stress free, it is possible. The speed at which you can create your budget will depend on one major factor; have you managed to save any money for Christmas. If you have money it is easy to create your budget, you have done the hard work already, if you have yet to put any money aside you will have extra steps to take to work out your Christmas budget.
What Is Your Christmas Budget
If you haven’t put any money aside for Christmas you must decide what your intention is for paying for the festivities. Were you planning to use credit or have you just put off the thought because you are unsure how or what you need to do? You can still have a debt free Christmas but you do need to start saving now; if you have your budget worked out for each month, see where you can find that extra money that you will need. You might be able to reduce your grocery budget or cut out some other luxuries that you have to increase the money available for your Christmas budget.
Once you know the figure that you have available for your total Christmas budget, the simplest way to split this into the different categories is to give yourself 20% of the total money for the extra food you will need, 75% for present shopping and the final 5% for any emergencies that crop up.
Yes, it is as simple as that, you then can work out from there what you need to buy.
How To Budget Your Christmas Money
If you are looking for a debt free Christmas it is possible and they are so nice, you make the extra effort to make memories; these are more precious than spending money that you don’t have. In addition, you have the steep rate of interest that credit companies apply to any money you spend on credit.
If you need more money for a category, it is important to ask yourself why, is there a way that you don’t need to spend more money? Could you reduce the number of presents you need to buy or reduce the amount of food that you purchase? It is about making the money that you have available and making do with what you have, if you would like more money then you either get a second job or sell items that you already own.
Yes, it would be nice not to have to worry about spending money, but unfortunately, this isn’t the reality for most people. You can’t afford to live above your income for any length of time, it is not a lifestyle that you can maintain.
Saving For Christmas
There are different ways to save for Christmas. You can put money away in a bank account, this is my preferred method, but I have noticed that some shops do their own Christmas saving cards, and sometimes they do offer great returns, sometimes even more than you can earn in interest.
However, I am cautious of these deals; one, I’m worried that if the shop suddenly closes, you lose your money. In addition, it limits you to just the one shop, it might be cheaper at other stores for the same item.
I am not a fan of the catalogue saving companies, I just don’t think you see the benefit of saving throughout the year, you would do better to put the money into a bank account, but this is just my personal opinion.
Therefore, sorting your Christmas budget is easier than you might think, it is about then making the money you have, work for you. You might wish you have more, we all do, but it is about making the best of what you have and not wishing for something different. If you want more money then you have to look at your goals for the New Year and actively make changes to your life so that next year you have the money that you want.