Christmas time can also be an expensive time of year. With most people sending presents, decorating homes with Christmas Trees and decorations and also the extra indulgence of food and drink that the festive time brings it can soon all add up and be quite an expensive time of year.
Most people will just fund the cost of Christmas out of their wages or income they get in November and December, which in many cases might not be quite enough and may even lead some people to go into debt to help cover the cost of Christmas by taking out a credit card or loan.
However, there is an easier way to help cover the cost of Christmas by simply saving up throughout the year for it. You first need to work out how much you expect to spend at Christmas, adding presents, food, decorations all to the total. Once you have this figure you can then work out a more manageable way to plan and save for the Christmas period with ease.
For example, if you anticipate that you will spend around £500 at Christmas then you should work out how much this is spread out over the course of a year. So to spread the £500 cost over the year it works out at around £42 per month you need to put away or around abouts £10 per week.
Splitting the cost down this way makes it far more manageable than having to find £500 in one “hit” and will mean you need not stress so much about how much you are spending or how much money you need to find when it comes to Christmas planning time.
It is worth setting up a new savings account for the money so that it doesn’t get mixed up with the rest of your money in your bank accounts and to make sure you don’t spend it. So you don’t even need to think about putting your £10 a week into it you could even set up a direct debit to automatically transfer it from one account to the “Christmas account” when you get paid.