Traditionally Christmas is a time of sharing, giving and happy holidays spent with family and friends. It is also a time of increased spending and stress. The biggest problem with having a great holiday and Christmas that you didn’t budget for is that after December comes January or “Januworry” as some people like to call it.
This year maximise your December joy and minimize your financial stress and worries by following some of the tips discussed below.
Have a separate budget for December holiday.
If you don’t have one already, set a detailed budget for Christmas spending! Your budget must include all your regular December spending as well as some extra money for unforeseen expenses.
If you are planning to go on holiday include travel, accommodation, meals, excursions, entertainment and any other holiday expenses you know will crop up.
Your budget must also include your spending specific to Christmas if you celebrate Christmas. Have a detailed budget of how much you can spend on presents, decorations and food.
Budget tips for Christmas
You don’t want your Christmas spending to run away with you and cause you financial stress in January so keep the following in mind:
Use your bonus wisely.
If you are lucky enough to receive a December bonus make sure that you use this money wisely and don’t spend all of it on having a good time! This is the money that will help you get through January.
Divide your bonus into two when you receive it. 50% to spend on holiday and Christmas and 50% to pay towards January expenses like school uniforms and schools fees, or rent and utility bills. Put the 50% that is for January aside in a separate account and don’t touch it! You are going to be very happy in January that you did this.
You might want to buy school uniforms in December to avoid the “back to school” rush and have some peace of mind.
How do you plan for holiday spending?