By Austin Dease
When it comes to special occasions, celebrations and holidays, some people may struggle to save up enough money to create a truly memorable and exhilarating experience for loved ones. Here are a few ways to help manage your finances when it comes to budgeting for an occasion to impress.
Budget Throughout the Year
You can start by setting aside money during the year to prepare for your occasion. This should start 12 months prior to your celebration date. Determine how much money you want to put aside for the execution of your plan. Allocate how much you will spend on all aspects, like gifts, travel, restaurants, fancy rental car, etc…, staying within your total budget. Next, figure out how much of each paycheck you should reserve to reach that goal. You may want to put in a bit extra to reach the goal sooner.
This process may seem slow, but it provides the most consistency for reaching the amount of money that you need with smaller increments so you don’t compromise your financial health. After all, if you don’t budget throughout the year, you might have to take out large portions of your paycheck to cover expenses. Budgeting throughout the year can make it easier for you and prevent you from running out of money.
Take Advantage of Seasonality
You don’t have to save for 12 months then spend all the money you saved in one fell swoop if you are organized and take advantage of seasonal prices and unexpected finds. Be aware of what you spend and stay true to the per-item budget you have set. Whatever you decide to set as the amount you will spend, do not exceed that limit as you shop and don’t go off your list unless you can justify a swap that keeps your budget intact.
By creating a limit, you prevent yourself from having any unnecessary stress during the year leading up to your plan. After all, people tend to spend more than they realize, so setting that limit will help you to be smart with your money. You’ll go past simply buying many gifts to getting specific ones that will mean more to your family and friends.
Consider Other Expenses
When creating your plan and budget, you should consider other expenses as well. This can include babysitters or pet sitting, new clothes, gas, candles and the like depending on what you have planned. With so many extra costs in mind, you should always set aside more than you expect to spend to cover the things you might have forgotten. This will help alleviate the stress that could sabotage your good time if unexpected costs keep piling up.
It is natural to focus only on big-ticket items like gifts and hotel rooms and just as easy to forget to consider the other smaller fees or expenses. Keep them in mind as you create your budget to avoid any unexpected costs.
Avoid Going into Debt
Too many people find themselves overspending on an extravagant celebration, and in some cases, spending money that was intended to be reserved for emergency savings. When personal finances are in the red, there is no room for error should you be faced with an unexpected incident, such as a trip to the Emergency Room. With your savings exhausted, you may find yourself evaluating short-term options for funds, such as taking out cash advance loans online, to cover these unexpected emergencies. Don’t let this be you! Loans have a time and a place, but with a good budgeting strategy, you should always have a backup plan.
Ask for Help
You can lower overall costs by involving family or friends where appropriate. They will likely be thrilled to chip in and be a part of the fun. Make sure to offer a way for contributors to leave a personal message to your loved one.
When it comes to creating a special occasion to remember, you can budget ahead of time to make things easier for yourself. This can help you to have the necessary cash to cover the accompanying expenses without acquiring debt or breaking your bank.