Budgeting for Christmas

Where has, this year gone?

As we all know, November is already here and Christmas is just around the corner.

While some of us would have already started planning how to celebrate, many of us are completely baffled when it comes to how to manage finances.

​This year you will not be facing any difficulties, you can completely avoid paying debts at the same time you can also fight the seasonal spree effortlessly, if at the beginning itself, you make sure that you are making use of the right financial tools.

How to Make a Christmas Budget

A budget is not just a piece of paper, rather it is an effective way in which you can designate funds as well as track your expenditure.

By meticulously following the given steps, you can prepare your budget with complete ease.

Make a Christmas Gift List

The very first thing that you need to do is prepare a list that includes all those people to whom you would want to gift a present to. The list is designed to pinpoint those that you perhaps don’t need to buy a gift for. Does your mother’s great-auntie’s cousin’s dog really need a gift?

Determine Your Financial Limit

Once you have made a complete list of people, the next step is to decide upon how much money you can dedicate for Christmas gifts. You should also see that your budget is very reasonable in relation to your income.

Prioritize Your List

In this step, all you would be doing is separating each name into three different groups: paid gift, made gift and no gift. As you now know how much you can realistically give, you will have a better sense of how many people from your actual list can be added to your paid gift list.

Ways to Reduce Your Christmas Expenses

Most of us get quite concerned over the Christmas period about the extra expenditure and if we can make savings then it’s important that we explore these options.
  1. Buy Early: It may sound crazy, but many people buy Christmas gifts for family and friends during the January sales when everything is nice and cheap. Preparation is the key!
  2. Make Your Own Gifts: It is always a nice personal touch when someone offers you a nice gift that they’ve taken the time to create. They appreciate the extra effort and it’s always good to remember that not no one would want you to break the bank for them.
  3. Secret Santa: Secret Santa, has become a big trend during the Christmas period. This is especially the case in work places like offices and can be especially cheap when a spending limit is enforced. 
  4. Don’t Use Your Credit Card:  Credit cards can spell trouble when Christmas is involved. Interest rates can sky rocket especially with a constant stream of purchases, so it’s important to try and limit spending on the plastic, especially considering that you may well be paying it off well into the new year.

​However, you plan to spend your Christmas, it’s always really important to ensure that you don’t go overboard financially. No family member or friend would want you to spend money you don’t have which could send you into financial difficulty.

Christmas is about family and spending time with the ones that mean the most to us. Of course it’s a hectic time and sometimes it’s hard to keep track of your spending, but stay strong and stay true to your budget and your new found financial freedom will see you through year round.

About the Author
Tyler Horton is a problem solver. Coffee trailblazer. Passionate creator and a Financial aficionado specialising in helping victims of mis-sold PPI. To learn more visit: http://www.ppirefund.co.uk

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