As we edge closer to December, the pressure to get Christmas shopping intensifies. Everywhere you turn, adverts on TV, social media, and newspapers are encouraging you to buy their products for the festive season. Understandably, this can be overwhelming and when you already have financial commitments, finding extra money for Christmas is tough.
One of the best things you can do in terms of preparation is managing your money. Below, we have explained what money management is and how you can better manage your spending so that you can enjoy the festive season.
What is Meant by Money Management?
Simply put, personal money management refers to what you do with your income. Generally, it covers the following processes:
Essentially, money management means what it says on the tin – you manage the money that you have. The purpose is to help you learn how to live within your means and budget so that you can pay the bills and enjoy life’s pleasures.
Christmas is one of the most expensive times of the year as many spend money on gifts, food, decorations, and social events. It is an enjoyable time, but it can be incredibly stressful on your finances, which is why it is beneficial to follow money management tips.
What are the Principles of Money Management?
When it comes to personal money management, every individual’s situation is different, but there are basic principles that you should consider when going through your finances. These include:
- Organise Outgoings – If you have rent or mortgage payments, as well as bills, credit cards and loans, you need to keep track of all of them. By setting up direct debits or reminders, you can plan the month’s spending
- Spend Less than Your Earnings – A common reason why personal money management is needed is down to the fact that many people spend more than they earn. Overspending is an issue that leads to debt, so by spending less than your earnings, you can avoid this problem
- Prioritise – This is one of the most effective money management tips. There are things that we need to spend money on and things that we want to spend money on. For better personal money management, you need to prioritise the ‘needs’ over the ‘wants’. By doing this, you will have a healthier budget for Christmas
- Savings – Throughout your working life, it is advisable that you put a certain percentage of your monthly salary into a savings account. This is an effective money management method that will become routine. That way, should you need extra money in an emergency, you have a fund ready and waiting
How Can I Manage Money Better in the Run Up to Christmas?
Nobody wants to start the New Year in crippling debt, but unfortunately, Christmas spending can lead to financial problems for some. If you want to avoid this, then the aforementioned personal money management tips will help. By budgeting, saving, living within your means, and prioritising your spending, you can get in a comfortable financial position when the festive season rolls around.
If you require further help with money management, then you can gain a strong understanding of the processes by studying an online Personal Money Management course with learndirect. This is a Level 1 Certificate that will give you essential knowledge and money management tips to help you prepare for the Christmas period and beyond.
As part of your online course, you will delve into the intricacies of money management, covering the below units:
Unit 1: Identify Personal Finances
This section will cover the following:
- How to identify sources of obtaining money
- Compare different ways of raising extra money
- Understand the act of borrowing money
- How to identify personal spending
- Delve into ways to save, and the consequences of overspending
Unit 2: Manage Your Own Money
This part of your money management course will cover:
- Types of accounts
- Various money transactions that can be made through accounts
- How to record incomings and outgoings
- The difference between gross and net pay
- Benefits of saving for the future
Unit 3: Planning Your Money for a Significant Expenditure
When you reach this part of your personal money management course, you will go through the following:
- The meaning of expenditure
- How to identify the costs involved
- The ways in which the costs can be met
- The best ways to protect what the expenditure is for
To receive your Level 1 Certificate in Personal Money Management, you will need to complete a series of question papers, with each one being issued after each lesson. A personal tutor will mark your papers and receive feedback to help you progress to the next phase.
The course is taught 100% online, so you can learn money management tips from the comfort of your own home. You have the freedom to study at your own pace and in your own time. As soon as you enrol, you will be given 24/7 access to all of the course materials you need to achieve your certificate.
With this qualification, you will have a solid understanding of money management, which will not only help you, but you can also help others. As we enter the run-up to Christmas, it is beneficial for you to start thinking about how to better manage your money so that you’re not left in debt or overspending.
By improving your personal money management skills, you will be able to prepare for the hectic festive season. Budgeting will allow you to make the most of the holiday. That way, when you buy gifts, food, decorations, and more, you can feel confident knowing that you have the money in place.
Take Steps Towards Better Money Management Today!
There is no doubt that our money management tips will help prepare you for busy Christmas spending, but they will do much more than that. You can take the knowledge learned through your Personal Money Management course and apply it to future spending habits.
By grasping a strong knowledge of money management, you will be able to look after your income and spend it wisely moving forward. To start improving your personal money management, speak to one of our Course Executives on 01202 006 464. Alternatively, contact us online or click below to find out more.