Rule number one: Plan how much you will spend on Christmas this year and stick to it. The amount you have available to spend will depend on how much you put aside after your bills and essentials are paid for each month. It's never too early to start saving; the sooner you start, the less you will need to put aside each month. Planning your Christmas budget is easier if you do a little research. Then you can assign an amount to each person you are buying for and a separate budget for food and drink.
Rule number two: If you plan to host, create a guest list and stick to that too! For some, having a house full of people at Christmas is a joy, but it can be expensive. Assign an amount per guest in your budget: it can mount up quickly, especially if alcohol will be served.
Rule number three: Track your spending. Write it down each time you make a purchase - whether it is a gift, a bottle of wine, or a cute little toy outfit for the dog. You don't need a fancy app (unless you want one!). You can use a spreadsheet on your computer or phone to determine how much you have spent each time you buy something. It's so easy to forget what you spend if you don't make a note of it – not tracking your spending properly is the easiest way to bust your budget wide open!
Rule number four: Don't borrow for Christmas. Budgeting over a few months or a year is much better than paying back borrowed money with interest.
