Six amazing tricks to help your holiday budget.
27 January 2016: Making and sticking to a budget during the holidays can be tricky. Budgeting can be hard for a lot of people. Students in particular have a bit of trouble budgeting over their break. However, by following these simple steps, you can stick to your budget while enjoying the holiday season.
1. Set a daily budget and stick to it
This step is the most important. Knowing how much you are going to spend each day will greatly lower your chance of going into debt. Plan your daily budget around your everyday activities using the calculator below. Know how much you’ll need when you go out to eat. Are you planning on having alcohol? Do you need to tip? If you answer these questions, you’ll be prepared to stick to your budget.
If you decide to go over your daily budget, keep a record of how much you went over. That way, you can deduct spending amounts from other days to keep your budget in tact.
Plan where you want to go and what you want to do with your friends. Knowing these things will allow you to prepare and cover the necessary costs. Choose a time period, like the holidays, for your budget. When making your plans, know how much income you’re receiving and how much you intend to spend. Calculate your net income by subtracting your spending from your income.
This will give you a clear idea of how much you will save and should spend in the future.
3. Keep track of your spending
Keeping track of your spending does not mean you have to hire an accountant. Nowadays, it can be really easy to keep track of your spending. You can download several apps that track your spending. Many banks have a money tracker app which is easy to use and will help you stick to your budget.
4. Pay with cash
Paying with your credit card is certainly not a bad thing, but if you don’t keep track of how much you’ve spent, you could be in for a surprise. If you pay with cash, you know exactly how much you’ve paid. Alternatively, you could open a savings account or use a debit card so you won’t be using credit.
5. Try eating at home
During the holidays, there’s temptation to go out every night and party, especially for students, but eating at home will save you heaps of money. Eating at a restaurant or going out to a club can be really expensive. The average cost of a meal for two people living in Sydney is $80. Buying groceries and making a meal at home could save you money that you could use for other activities.
6. Stop shopping
This may be a difficult step for some. If what you’re buying is not necessary, don’t buy it. This seems so simple but there are plenty of times where people get enticed from advertising and buy a meaningless product they thought they needed.
Unless you plan to deduct money from your daily budget, it’s not wise to go over your budget for an unnecessary purchase.
By following these simple steps, you’ll be able to make a budget and stick to it for the summer holidays. This will help you control your expenses so you won’t end up in a big pile of debt after your break.