Christmas Shopping on a Budget
Christmas is in the air and so is the associated Christmas shopping. Before you start your Christmas shopping ensure that you have established a budget and exercise good financial discipline so that you enjoy the festive season without unforeseen debt and at the end of the holiday season you will be on your way to a prosperous new year.
In creating your December budget you should ensure that you account for the following:
- your monthly expenses;
- a prorated monthly amount of annual expenses such as your car insurance; which is determined by dividing the annual cost by 12; and
- holiday expenses such as parties and family festivities.
Use this simple formula to calculate your budget:
Christmas Budget = December salary – (Monthly expenses and savings + provisions for annual expenses).
Tips for Christmas Shopping on a Budget
Having determined your Christmas budget here are some tips that will assist you to shop within this budget:
- Make a Christmas gift list: In making your gift list for Christmas, detail gift options and the cost of each gift. This will help you to stay within budget, as it is obvious when you overspend on one gift you will have less money available to buy your other gifts.
- Use your debit card instead of your credit card: This allows you to spend only the money you have without additional debt and the associated interest charges.
- Give monetary gift certificates: It may be more budget-friendly to contribute to the gift your loved one really wants with a JMMB Gift Certificate. This could still be complemented with a small token such as a card.
- Create a “Christmas Gift” account: Start planning for next Christmas gift shopping early, by opening a “Christmas Gift” account today with JMMB and then save throughout the year.
While you enjoy the festive season exercising financial discipline will assist you to remain on track so you can achieve your other financial goals and stay on budget.