They happen every year – birthdays, Christmas and Valentine's Day, yet our budget is still caught by surprise when they crop up. Knowing how to budget for this occasional spending throughout the year will help us to remain in control of our finances. Here is how to budget for #OccasionalSpending.
Work out how much you will spend
The first thing you need to do is to work out how much you will realistically spend on all of these events combined. That includes:
- Valentine's Day
- Mother's Day
- Father's Day
Remember to think about everything – not just birthday gifts, but what about cards and postage stamps to get them to their recipient?
Divide your total by 12 (or 52 if you are paid weekly)
Once you have your total, you need to work it into your budget.
To do this, simply divide it by the number of pay days you have per year. If you are paid monthly, divide it by 12 and if you are paid weekly then divide it by 52.
Work it into your budget
Once you have your monthly or weekly total then you need to work it into your budget and start putting the money aside.
You can easily save the money into a different bank account, or use a cash envelope system to keep the money separate.
Make extra money
Sometimes occasional spending can really make a dent in your budget, and you might find that your budget doesn't quite stretch.
SwiftMoney have created this infographic all about #OccasionalSpending.