Budgeting can be a difficult task at the best of times – with the extra and unexpected expenditures of food and most significantly alcohol. Now that the festive season is upon us, even more spending is required and food and alcohol aren’t extra and unexpected – they are the norm and essentials to get through the family gatherings.
Most Christmas shopping does not go as planned and you seem to have spent double than what you wanted, not to mention the little extra present for yourself for the hard work of walking around with hundreds of other happy Christmas shoppers.
So let’s say, your normal budget throughout the year has been working well; there is the off-budget purchase every now and again but nothing too drastic. What happens now that you are in holidays and your routine goes out the door – should your budget as well? Not necessarily. There are a few steps to take to make sure you do not dip into those savings.
The first step is easy; calculate your total income for the holidays. The second is a bit more difficult; make a list of all expenses during the holidays. This includes fuel, food, presents, and accommodation – go on a day-by-day basis to cover all areas. A handy tip is to make a list of all the food and presents you need to buy with strict and accurate prices and where you will purchase the presents. Stick by the list and only digress if absolutely necessary. Being prepared for the purchases is key.
The ideal outcome is to have income outweigh expenses by 10%-20% of weekly/fortnightly paycheck. This ensures you have enough extra cash to pay for those unexpected surprises.
If you do have further questions on saving and budgeting the team at Accession3 Financial Advisers are experts at making you spend less.
By: Conor Hilton