How to budget for holiday season

The following article highlights how you can prepare for this holiday season comfortably without causing a huge strain on your pocket.

09:54 31 December 2013

It is the season to be jolly and also the season to go overboard financially. You should think about enjoying your holidays. The chances of going over-budget this holiday season are very high.  Hence, it is important that you keep track of your expenses and make savings where you can.

Gift giving is the hallmark of the festive season and it can cause huge dent in your pocket if you are not careful with the money.

1.    Know what to you have to spend

You need to work out what you need to spend to make budgeting easier. Nevertheless, before that you have to set aside a nest egg first if you are going to do it comfortably. If you dip into your personal savings, you might end up ruing that decision come January.

It is good that you have a contingency budgeting plan for the holiday season and work out everything beforehand in order to avoid impulse buying.

Have some cash set aside for one-off purchases like a Christmas tree or the Christmas turkey.

2.    Spread the costs

In order to avoid getting overwhelmed by the purchases this festive season, spread them out in advance. If you can buy some gifts in advance the better. This way you ease the budgeting process early on.

You should look out for deals as early as possible. Things like wines and the likes have deals in the course of the year. And considering that they do not have an expiry date, buy them as early as possible.

3.    Arrange everything in good order

Track your spending and avoid exceeding your budget. Spot opportunities to save money and keep an eye on your finances. You take advantage of the mobile applications offered by many banks to help you in the budgeting process. Take advantage of these apps to put your finances in order.

4.    Have fun this Holiday Season

Let your hair down this holiday season. After all, it comes only once a year.