OK some of you may think it is too early to be thinking about Christmas but it will soon come around again and many shops will be starting their Christmas displays in the coming weeks.
One of the reasons for this blog entry is to talk about budgeting for Christmas so the earlier you read this the better.
It is difficult to be indifferent about Christmas, most people love it or hate it. Personally I am nearer to the latter category thanks to the rampant over-commercialisation and the expectation of a food/drink/cash binge.
However, as my wife and family don't agree with me I have to make a token effort (and it will be a VERY token effort) and buy a few gifts, food etc.
As money is tight, finding an extra couple of hundred quid in December is not going to be easy so I have set up a better way of budgeting.
Over the past few months, in light of a very tight budget generally, I have restricted food shopping to once a week. We make a list in advance and try not to deviate from it.
At first I did not restrict how much we spent, I just monitored the situation to find out exactly how much we were spending. It worked out around £55-60 per week.
Then I set a budget of £50 per week and added up the items as we went around (much to my wifes displeasure and embarrasment!) to make sure we did not overspend.
Once we were managing at £50 per week I reduced it to £45 per week and this has been the figure for several weeks now. It is difficult to go below this as it includes formula milk, nappies, wipes etc. for the baby which we can't skimp on!
By the way, we are not exactly starving on this new £45 budget, as can be seen from my belly photo, so a lot of the extra cash we were spending was just wasted on unecessary items.
So we are spending around £45 per week on food and around £15-20 per week on diesel (I can't reduce this as I need to get to work).
I have obtained a cashback card which gives me a 5% discount off my shopping and petrol. This is NOT a credit card, you have to load it with money first.
We are loading it with £300 on the first of every month and this covers our shopping and diesel costs of around £250, leaving around £50 in the account each month.
By Christmas this should have accumulated to around £200-250 (we started in August), enough to pay for Christmas, plus we get 5% off everything we spend.
Using this card gives us more control over our spending as well as the added bonus of a 5% discount.
This is a much better idea than putting Christmas on your credit card and worrying about how to repay it in January.