Part 4: Managing your expenses effectively is essential to enjoying a stress-free holiday season of knitting.

Managing your expenses effectively is essential to enjoying a stress-free holiday season of knitting. In today’s blog we will plan and track your budget for each knitting project, ensuring you stay within your budget while creating wonderful gifts this season.

I’m going to project management geek out for a moment.  I’ve been a certified Project Management Professional (PMP) by the Project Management Institute (PMI) since 2006.  From all my years mentoring and teaching project managers, this was always one of my favorite lessons to teach.  Tracking both estimated and actual costs is crucial for effective project management - even knitting project management. Let’s face it, who hasn’t walked into a yarn store needing one skein and walked out $200 later with a bunch of “can’t live with out” items. My hand is raised, how about yours?

Why is it important you ask? Well, thanks for asking…

Accuracy: It helps in comparing the planned budget with actual expenditures, providing insights into spending habits.

Control: Allows for adjustments to be made promptly, ensuring that projects remain within budget. 

Forecasting:  Improves future budgeting by understanding variances between planned and actual costs.

Decision Making: Informs better financial decisions for current and future projects, reducing the risk of overspending.

So basically, it lets you know if you are off track, how you got there, and what you can do to avoid future overspending.  If I’m walking around a store I have a tendency to find items mysteriously jumping into my shopping cart (that’s my story and I’m sticking to it). I recognize shopping in person for me is a budgeting project risk (future lesson) for me so I shop online more.  Risk mitigated!

Let’s make a plan. 

Step 1: Estimate your costs (aka planned costs)

Begin by estimating the costs associated with each knitting project. Consider expenses such as yarn, needles, patterns, and any additional materials or embellishments.

Break down the estimated costs for each item on your knitting list to get a clear picture of your overall budget. Use your supply checklist to help you get started.

Yarn: $25

Needles: $10

Patterns: $5

Embellishments: $3

Step 2: Actual Costs

As you purchase supplies and materials, record the actual costs incurred. This allows you to track your spending in real-time and make adjustments if necessary.  Include space to note where you purchased each item and any discounts or special offers applied.

Use the notes pages to jot down any additional details about your budgeting process. This could include tips for saving money, alternative materials you're considering, or ideas for cost-effective projects.

Would you like some actionable budgeting tips you can use in your holiday knitting?

Set Priorities. Decide which knitting projects are most important to you and allocate a larger portion of your budget accordingly.

Shop Smart. Look for sales, coupons, or bulk discounts when purchasing yarn and supplies. Consider using stash yarn or leftovers from previous projects to reduce costs.

Review Regularly.  Periodically review your budget to ensure you're on track and adjust your spending as needed to stay within your financial goals.

Are you enjoying this series and would like our Christmas Knitting Planner to download?  See you next week for our next installment.  
Happy Knitting (and planning!)

Jenna