A budget is not just the pathway to financial freedom; it is, financial freedom. If you fail to budget, you’re budgeting to fail. Now, the thing about budgeting is that it cuts across every area in our lives, Christmas spending inclusive. So, in order not to go bankrupt immediately after your fun-filled Christmas holiday, how can you make the right budget for the holiday? It’s quite simple, and frankly, that’s why we are here to take you through the proper budgeting channels for your upcoming Christmas season.
Monthly Savings
Savings are a massive part of budgeting. That’s why if you wouldn’t want anything to go haywire during your Christmas celebration like having to run out of cash to either buy stuff for your family or loved ones, you have to start budgeting now. And if you’d ask me, I’ll say that making a budget against Christmas (December), starting from January is the ideal way to go.
Now here is the formula. For every month, starting from January of course, take out from your monthly budget at least $50. Now, let’s say you’re consistent in doing that. In 12 months’ time, you will have $50 x 12months, which is a whopping sum of $600 just for Christmas spending without having to touch your income.
If you have an extended family or a long chain of friends, you can step up the savings to at least $70 or more, and at the end of the year, when it’s time for Christmas, you must have had at least $840- $1000 depending on how much you saved. So basically, the best time to start planning for Christmas is when the year begins. That way, you won’t have to make any out of budget Christmas spending.
Impulse Buying
Impulse buying is one of the spirits that comes with Christmas. And of course, who wouldn’t want to engage in such when Christmas is all about merriment and joy right? Well, if you’re on a high budget, that wouldn’t be much of a problem, but if you’re on the other side of the coin, where your budget is somewhat limited, it’s best you avoid impulse buying before or after Christmas. The point is, avoiding impulse shopping will help improve your finance tremendously, thus paving a more transparent channel for point number one, which needs you to save up for Christmas every month.
In a nutshell, if you’re an impulse buyer, your monthly savings will undoubtedly be shattered, and your Christmas budget will ultimately be in shambles.
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