Christmas, as Andy Williams reminds us, is the most wonderful time of the year. But it can also be the most expensive – especially if you aren’t taking your festive budget seriously.
With that in mind, let’s take a look at a selection of tips that will help you to limit your spending, without compromising on the Christmas experience.
How to financially prepare for the festive period
A great Christmas is built on the right planning. But what does that planning look like?
Get talking to friends and family
Often, the reasons for overspending aren’t actually financial – they’re psychological. When we’re eager to please, or we feel like we need to demonstrate how capable we are, or we simply want to make our loved ones happy, we can be tempted into a Christmas splurge.
The solution here is simple: talk to your family and friends and be honest about your finances. The chances are good that they wouldn’t really want you to spend that much if they knew you were hamstringing your finances in the process.
Set a budget
When devising a budget, you should come up with a desired total spend. This can be broken down into subsections. Think about food, decorations, travel, and gifts. Get all of this down on paper, and you’ll have a better chance of spotting potential problems and the things that you’re overlooking.
Start saving early
The earlier you start saving, the easier you’ll find it to save. You might even set up a dedicated savings account for the purpose, into which regular payments can be made. If your Christmas savings are happening automatically, then you’ll be less tempted to spend extra on frivolous things throughout the year.
Five money-saving tips
So, what are some of the best ways to actually save your money?
Start a Secret Santa
If you find that you’re buying lots of inexpensive presents for lots of people at work, then you might save big by rolling that spending into a single good present – one that will actually be appreciated. This is where Secret Santa comes in. Everyone buys a gift for just one other person – but you never reveal who is doing the buying.
Make the most of discounts and cash-back
Retailers give you plenty of chances to save. Look at discounts and cash-back schemes, especially from online vendors. Big one-off events like Black Friday are often packed with bargains – so make sure that you’re considering them.
Hit the charity shops
If you’d like to limit your spending and limit your environmental impact at the same time, then going second-hand is obligatory. Scour local charity shops and sites like Vinted and Ebay.
Plan well-ahead
As we’ve mentioned, early saving can make a difference. But so too can early shopping. If you want to limit your spending for the Christmas after this one, then make sure to pick up all of those little things when they’re in clearance in the week before the New Year.
Find free Christmas activities
A lot of the best things about Christmas are free. Take a stroll through the local markets, go listen to some carol singers, and watch the lights get turned on.
