You know Christmas is coming at the same time each year. So why not start setting aside money for it as soon as possible instead of skipping drinks with Santa or maxing out your credit cards, then trying to pay it back after.
Pots’ are a great way to save and visualise your goals.
So, take your £600 Christmas budget and divide it by 12 months, giving you £50 per month. Next, create a savings pot called ‘Christmas’. Upload a picture of a festive scene and set up a scheduled monthly payment of £50 into this pot. By the time Christmas comes around, you will have some money set aside ready for having a great time without the financial stress.
Now, repeat this process for each of your known annual expenses. This can include annual insurances, holidays, birthdays and annual memberships etc.
I even use this for things that I’m saving up for, such as new threads or shades. I create a Pot and each week I try to have a little left in my budget which I put towards this pot. It’s hugely motivational.
This method ensures your expenses are smoothed out over the year rather than having one big cost that wreaks havoc with your monthly budget. In addition, Monzo or Starling will show you how you are progressing towards your goals and you’ll be amazed at how motivating this can be.