Budgeting…our MABS teams favourite activity! (Especially at Christmas).
Let’s first define exactly what a budget is.
It is a plan that helps you manage your money. It’s the first step to taking control of your finances. A budget enables you to figure out how much money you get, spend and save. Creating a budget takes a bit of effort, but taking the time to do this can really pay off – especially when planning for Christmas.
You cannot BOSS Christmas with MABS without budgeting.
Start with a list
Let’s dive into some of our top Budgeting tips and tricks.
One of our oldest tips (and one that even Santa uses) is making a list and checking it twice!
It’s essential to make a list of what you need to buy for Christmas. Divide it into categories, such as:
Once you have your categories done, it’s time to prioritise! If you have a limited amount of money to spend, what could you cut from the list? Work your way through, numbering items in order of importance. Use our My Budget tool to help you get started.
Review the list and add up the expected cost. Is it a huge figure? If so, look at each individual item again to see how you can reduce the cost. Try not to build any of your plans based on a bonus or overtime payment. Only include income that you are absolutely sure you will get before the Christmas holiday.
Are there other ways to celebrate this occasion? Maybe taking the time to be with those you love is all that is needed. Above all, try not to overburden yourself with debt and make sure the Christmas period is one you will enjoy and look back fondly on.
Budgeting doesn’t have to be all about money. It’s important to budget your time too. Making a to-do list that sets out what you may need to do between now and Christmas will help in many ways. For example, it will help to reduce the risk of last-minute and possibly expensive purchases.
Planning can mean that Christmas is manageable and enjoyable for everyone, including you. Start planning today by making a list of what you need to prepare for and a spending budget. Planning now will help to reduce financial surprises.