As we head into the holiday season, we know a few things will be stretched. Our waistlines for one, and usually our budget, sometimes our patience too but that is another story. Here are our top tips to help ease the burden on your budget so you can focus on the fun stuff now and throughout the year.

1. Decide why you are budgeting in the first place

Is it so you don’t need to feel pressured about those expensive gifts on the kids’ wishlist? Are you saving up for that holiday you have always wanted? That car upgrade you so desperately need? Or are you ready to get married and are worried about the costs? Whatever it is, knowing why you are doing something can make it easier to follow through.

2. Avoid limiting yourself unreasonably

The biggest trap in budgeting is limiting or restricting your spending by so much that the budget is off putting. Think of it more as a spending plan and test out different methods that work for you. If something doesn’t work – try something else!

3. Prioritize expenses and goals

You must first understand the difference between necessities and luxuries. Focus on the expenses that will stay the same, such as your mortgage or rent, then the essential expenses such as your groceries. This is commonly known as the 50/30/20 rule which suggests that 50% of your income is budgeted for your essentials, 30% toward your wants and 20% towards savings or debt.

4. Leave room for surprises (have an emergency fund)

Your budget won’t always go to plan – surprises happen! Accept that this is okay and impulse buys are going to happen. Remember to set aside a small amount of cash to cover any unexpected expenses that may pop up.

5. Automation

A great solution is creating separate accounts for bills, savings and “spendings”. Have automatic transfers from your everyday account that goes into these separate accounts based on what you have calculated in your budget. Break down significant annual expenses into fortnightly or monthly payments and have these automatically transferring into an account to ease the burden. Take away the stress of not knowing if you have enough to cover the next bill and plan!