Christmas is the most magical time of year but it can also be the most stressful if you’re worried about money. Fear not though! Our team have the low-down on how to prepare for the big day and avoid breaking the bank! Our tips are just as relevant for other seasonal events such as Eid and Diwali so please keep reading!
Luckily for all of us, we always know when Christmas falls which makes it easier to plan for. If you want to Budget for Christmas, you need to start in January and include savings for Christmas as an item on your budget. However much you decide to save, put the money in a separate account and don’t touch it!
Alternatively, you may decide to start your Christmas Shopping in January and spread the cost throughout the year. Just a word of warning though – don’t forget when you’ve brought as well as where you’ve hidden it! Keep a list so that you can keep a track of everything!
Admittedly, this is easier said than done. However, if you’re worried about your Christmas spending getting out of hand, you may have to make some difficult decisions. Instead of exchanging material gifts, perhaps you could gift “free presents” – a night of babysitting or breakfast in bed are always welcome treats for many!
Another option for a group of family or friends is participating in a “Secret Santa” gift exchange. Each participant’s name goes into a hat and each person picks a name. You just buy one gift for that person rather than buying everyone a present. A spending limit is normally agreed so that everyone has a gift of equal value. It’s a fun way of exchanging gifts whilst keeping costs down for everyone. You can even use online Secret Santa Generators to choose the names!
When you make that list, add everyone that you intend to buy gifts for and set a spending limit for each person. Then make sure you stick to it. Being good with money is all about being organised as well as disciplined so try to make a plan that you can stick to.
Be honest – how long is it until Christmas cards end up in the recycling?! A week or two at best?! So why not save the money spent on cards and postage and send digital greetings instead?! It’ll no doubt save you time too at a hectic time of year and you’ll be reducing your carbon footprint into the bargain – what’s not to like?!
Again, as well as saving you money, this is also kinder to the environment into the process! Save up and reuse wrapping that you receive, just don’t be too eager unwrapping presents! Easier said than done if you have kids, we know!
Don’t waste money on stuff they’ll never use. Charity gifts themed around someone’s interests can be more valued than a material present and it makes a difference too! Check out Martin Lewis’ Charity Gifts for some thoughtful ideas.
If you want to make some extra money to put towards your Christmas Budget, you could consider selling unwanted stuff online. Let’s face it, we all have stuff hanging round that’s no longer needed. Websites like Vinted can help you de-clutter and make some extra dosh for the festive season.
As we’ve explained previously, credit cards can be useful if used wisely. They are particularly useful if you’re purchasing something over the value of £100 because you’ll be protected if the goods are faulty or if a business you’ve purchased from goes bust.
But please - make sure you pay off credit cards on time and in full to avoid interest charges. Remember, Christmas is supposed to be the most joyful time of year but it won’t be if you’re in debt.