Things To Consider When Drafting The Perfect Christmas Budget
Christmas is just around the corner, and along with it are the endless shopping bills. We sometimes get too carried away with the festive holiday season that we lose track of our money. It does not help that every time we browse the internet, ads flood the screen pushing us to buy more either!
The culture of this season is somehow misinterpreted. People see this as the season to give and receive gifts. This expectation leaves us with a tight budget and a bill that just seems so irrational. So before anyone starts going to shopping malls, let us first learn how to have an effective budget during the holidays.
Learn from the past
So, what was Christmas like last year? Was it fun? Was it overflowing with food? Are there many regretted purchases? Well, as what they say, history is the best teacher, so learn from it. It’s best to consider the events of previous celebrations and collate those data to make a comprehensive report. Try to remember the emotions that were felt as soon as the bills started pouring. If there are things that we thought important but did not really made any difference, then just skip it. If it did not matter then, it won’t still matter now.
Ever wonder why Santa always has a list? Well, maybe he’s on a tight budget that he needs to stick to. If that is the case, then, let’s all be Santa.
Making a list will help us remember and prioritize all the people that we value. Shopping without a list is like cutting onions, it can make us cry and messy. Shopping lists are like the Polaris of the great navigators, they treat it with great value so they can arrive at the desired destination. Lists also help our brain get more categorized, and it eliminated the huge tendency of impulsive buying.
When making a list, think hard. Prioritize people who are important. The lunch lady will understand if she will not make the cut, so don’t try to give everyone everything.
Sky is not the limit
Now that the list is already in place, try to think of a ceiling amount of all the spending combined. Take all the monetary spending into consideration. Money spent on food, transportation, and even gift wrappers should be included in the budget. It’s the little things we forgot to write down that end up being the culprit of our budget.
When the desired budget is achieved, try to stick to it. What’s the point of a list and a budget if it’ll be ignored? So, no, don’t buy that pair of shoes that looks really nice. Never bargain with the fixed budget, or the entire thing will crumble down.
This budget should also be drafted according to our monthly income. The money we release should not surpass the money that we’re bringing in- this can only lead to a stressful post-Christmas.
Pay in cash
Bringing cash while shopping might be a little work, but it’s going to be worth it. Having cash will give us a clear, physical picture of what’s only left of our money. It can help us control or dial down some crazy spending and will put us back into perspective. Having a credit card may be convenient, but since it’s only a vague representation of money, we get lost into and betray our budget. Sure, it feels nice to be able to take home the things we’ve been eyeing for, but the true pain only comes in when that monthly bill gets delivered.
Christmas is not just about the gift and the brand new clothes. Though it seems to be more special, Christmas is still more than just that. We sometimes see it as a season of receiving and giving only. Kids get disappointed when their parents don’t wrap presents, and somehow, it’s tainting the sacred feast. True, it’s better to give back to other people but not to the point that we find ourselves in maxed out credit cards.
Remembering and feeling the true meaning of Christmas must still be a priority.
More in Advisor
Here’s Your Personal Guide to Making Nearly-Perfect Financial Decisions
Everyone makes dozens of financial decisions every day. From paying household utility bills to signing critical documents at work, in some...September 1, 2020
A Drink from the Fount of Investment Master, Warren Buffett
If you’re knee-deep in the world of investment and finances, you’d be well aware that Warren Buffett’s name is synonymous with...August 29, 2020
Financial Tips to Sail Through 2020 Without Drowning
Caution advisory: We don’t mean to scare you, but we just might (only a little bit, though)! When you realize that...August 28, 2020
Hear It From The Horse’s Mouth – Self-Made Millionaires Reveal Their Richness Secrets
Making money isn’t a child’s play. But regardless of how challenging business gets, you can’t give up if you want success....August 25, 2020
Financial Advice You Want to Make Your Clients Stay Away From
Ever heard of someone who didn’t want a luxurious life? Sounds laughable, right? But the truth is that while most people crave to...August 22, 2020
Financial Advice: Is the year 2020 Favorable for Investment in Residential Property?
The year 2020 has taken an unexpected turn, leaving everyone baffled. Individuals had different goals and plans for the New Year,...August 21, 2020
Three Critical Thing You Need to Know to Build a Diversified Investment Portfolio
If you’re new to investing, complex terms like “diversification of portfolio” could leave you a little baffled. Well, take respite for...August 14, 2020
The Year Ahead Looking Bleak? Here Are a Few Investing Tips that will Give You Some Hope
The world is at war against a global pandemic. Over 600,000 people have been lost to the fight. Yet, it doesn’t...August 11, 2020
It’s Never Too Late! Learn How To Build Your Wealth in Your 70s.
As you enter your 70s, it isn’t uncommon to want to change your investment strategies. Long gone are the days when...August 11, 2020