Here are some simple steps to get your Christmas budget inline.
Assess your December’s expenses
Make a clear list of all your expenses that you will be encountering this Christmas. This list should have: shopping list, entertainment list, traveling expenses list, any debts to be paid in December, utility bills, and also include in it the amount of money you may spend on your hobby or pets in December.
Your total earnings in the month
Start by calculating the monthly income if you are an employee, or self-employed then add it if you expect to receive the money that you had lend someone in the past. If you have bought shares of some companies (investments) this should also be included in the list if the dividend is expected in the Christmas month.
What is left of the income after expenses?
Subtract your expenses from your income and check how much you will be left with by the end of the month. See inevitable is likely to happen at any time and natural disasters and calamities are not under the control of humans so you have to have some money in your pocket always.
Find the best way out
Try cutting short your expenses if your expenses exceed your income. You can use discount coupons to save money on your shopping expense. There are and will be more of Christmas discount offers on grocery and other household items. You can use these offers and online coupons to save money for the rest of the month of December.
Generate money to reduce your debt
You can either work for some extra hours or manage money from your monthly income to pay off your debts. See you can’t just leave out the debt part from your Christmas month’s expenses because if you don’t pay them in December you will have to pay double the next month and your next month’s budget will get disturbed (if the debt has to be paid every month).
Test your budget
Once you have prepared the lists and calculated everything, put your budget to test. See if you really can live the month keeping your nerves alive for Christmas expectations and entertainments.
Try the same for other months
If your December’s budget helps you enjoy Christmas and saves you some money then try the same for the coming months too. If it doesn’t work well then find out where you lost the grip to your budget and where you had to control your expenditure, like this you will be able to prepare a better budget for the next Christmas.
But don’t forget!
- Be honest when putting down expenses or will end up making an unrealistic budget.
- Don’t forget to add in the extra expenses like eating out with friends, movie etc.
- Fear not if the first time your budget exceeds your expectations for there is always room for change.