BUDGETING TIPS FOR CHRISTMAS

Amari Marè

@amari.mare

 

Christmas is around the corner, and it can leave people in a flat spin over budgets and planning. However, there is no need to empty your piggy bank! Here are some tips to help you budget for your Christmas shopping.

 

Break Down Your Income and Expenses

 

No need for a mental breakdown—just a simple breakdown of your income and expenses. Determine how much you spend on monthly necessities and how much you are willing to spend for Christmas without dipping into savings or credit. The popular 50/30/20 budgeting method can help you figure this out.

 

The 50/30/20 Rule

 

Fifty percent of your income goes toward essential needs, such as water, electricity, groceries, and other necessities. Thirty percent is set aside for wants, which can include Christmas decorations, travel, and leisure. During the holiday season, consider cutting back on other wants, such as dining out or streaming subscriptions. Twenty percent is for an emergency fund, investments, or extra debt repayment. Having a separate holiday fund can relieve some stress.

 

Categorise Your Budget

 

Divide your total budget into categories. For gifts, include family and friends. Make a list of what you plan to buy for each person and set a spending limit, sticking to your plan to avoid last-minute splurges. Remember to include wrapping paper and gift bags in your gift budget.

 

For food and drink, include Christmas dinner, snacks, and beverages. Outline what food and snacks you will need to avoid duplication and to compare prices efficiently.

 

For decorations, include the Christmas tree, lights, and ornaments. Decide whether you will reuse last year’s decorations or purchase new ones. Buy only what is needed, and use any leftover budget for food.

 

For entertainment, consider parties, outings, and social events. Plan when and where you will go, and remember that during peak holiday seasons, some venues may be fully booked, so plan ahead to ensure reservations.

 

Sales

 

Shop early to beat rising prices. Use discount codes, loyalty points, and seasonal sales, and compare prices to save wherever possible. Consider DIY gifts for a personal touch.

 

Track Your Spending

 

Avoid overspending by tracking your purchases. Use budget apps or printable trackers, such as Budget App – Spending Tracker or Goodbudget, to stay in check.

 

Plan for Next Year

 

Start saving early for the next holiday season. Remember, Christmas is about joy, not overspending. A well-planned budget keeps the season merry and stress-free.

 

 

Edited by Isabel Burgers