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Big expenses budget to keep finances under control

The fake snow has been washed off and the ham is down to the last scraps clinging to the bone. Christmas is over and Australia is looking optimistically ahead at 2013.

Retailers over the Christmas period noticed a decline in credit card spending, meaning Aussie households were using their hard earned savings to fund Christmas.

While this news is a debt rescuers dream as credit cards lead to nothing but trouble, spending your savings can also leave Aussies a little short for the first months of the New Year.

You should take this opportunity to plan a financial strategy for 2013 and make sure all your huge expenses are covered.

The easiest way to plan out your strategy is to open the cover of your diary to the yearly plan page.

Next, on a blank sheet of paper, write down all your expenses for the year and when they fall due, even if it’s just the month.

For example, car registration might cost you $400 and is due in June and your car insurance is $600 and due in December.

Other hefty annual expenses include: car service, new tyres, licence renewal, home insurance, rates and even birthdays.

Once you have a list of all your annual expenses, mark the dates on your calendar and calculate how many weeks you have to save for each expense.

Now you can figure out exactly how much you have to set aside each week or month so you can afford your large expenses.

So by putting aside $50 a month from now until December, you can easily afford your $600 insurance bill when it arrives and you won’t have to stress about finding the extra cash at Christmas time.

Even if your Big expenses budget is the only budget you plan in 2013, it will help you keep on top of your bills and live stress and debt free.

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