Running a household is like running a business.

Income comes in, costs go out and, at the end of the month or year, in the case of most businesses, you are hopefully in a net position.

Just as with a business, households incur peaks of expenditure and Christmas is just such a time.

The good news is that, because you know it's coming, you can plan for it!

First of all, work out a realistic budget. Sit down and write out exactly what you want out of Christmas - and then put estimates beside these items.

This will soon show you if you can afford the Christmas you would like to have.

Once you have written down everything - and I mean everything (don't forget things like postage on your Christmas cards and last minute presents for the neighbours!) - you can then get a clear picture of what you are up for. If it's too much, start pruning! Do you really need all those extra decorations etc? It's not being mean, it's about being realistic.

Once you have come up with an affordable budget you then have to stick to it.

There's no point making budgets and then overspending the whole time. Sticking to an overall budget is a matter of give and take. If you can make savings in some areas, you can overspend in others.

So be canny about where and when you buy things and don't forget co-operative working. If you and your friends or neighbours like cooking, get together and decide on one item each to cook - one can do sausage rolls, the other mince pies and so on - as it will be more economical to cook a lot of one kind of food and then all swap.

And also, just like a business, we should not buy what we can't really afford in the long-term.

Credit cards should be used carefully. They are great to get you through expensive periods - and let's face it, we all have them - but they can run away with you if you use them as an on-going form of ready money.

By careful management of the budget that you yourself have set, you should be able to have a wonderful Christmas without those January credit card statement blues!

So . . . if you can organise Christmas . . . why not think about setting up your own business?

The new year is a great time for a 'new start'!

For more information about Business Link West Mercia visit www.blwm.com or contact the Enterprise Team on 0845 641 1577.

Clare Williams ponders a Christmas budget.