How to Organise Your Finances in time for Christmas

How to Organise Your Finances in time for Christmas
How to Organise Your Finances in time for Christmas
Christmas may seem like a very long time away but it is always worth planning it well in advance. You may get organised arranging which family members you are going to see and who you will be buying gifts for, but it is actually the finances that you should be considering first. You will need money to pay for travel and transport, gifts, food and decorations and so it is important to make sure that you plan this well beforehand. Below are some tips on how you might do this.

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Save some money each month

One strategy could be to save some money each month towards Christmas expenses. Consider whether you want to calculate a specific amount of money you wish to save or whether you will just save any money that is left. You could work out how much your normal outgoings are and then put anything extra towards Christmas. You may need to consider cutting back on your spending in order to afford it. You may need to stop buying unnecessary things so that you can put that money by towards Christmas things.

Decide how much you are spending and save that

Some people always spend the same amount at Christmas per person or for things and then worry about how to pay for it afterwards. If you like to spend a certain amount per person on gifts then calculate how much that will be. Then add on the cost of extra food that you might be doing and the expenses of any travelling you might be doing. You will then know what you will be spending and can then calculate how much you need to save.

Keep some extra aside

Whether you are saving a bit each month and then using whatever you accumulate to spend or you know how much money you want and are aiming to save that much money it is important to have a little extra. You will find that there will always be a few extra things to pay for that you have forgotten. This might be gifts for people you do not normally buy for, extra food for surprise guests or things like that. It is wise to make sure that you have quite a bit of money for this. If you do not spend it then you can use it to manage those extra bills that always seem to come along in January!

Borrowing Money

It can be easy to think that you will just borrow money; perhaps using an overdraft or a credit card. Although this will make spending easier at Christmas, you will not only have to pay back everything that is owed but you will also need to pay interest on that. If you wait a long time to pay it back, you could find that the charges are so high that the things that you bought cost a significantly higher amount than you originally paid. You will also have the stress of finding the money to make those repayments and it could take a long time to pay it all back. Some people do not mind being in debt but for others it can be a big worry and you do not want to be worried about your spending like this. If you budget now and save some money, you will not have to borrow it when it comes to Christmas time.

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