Halloween might be just around the corner but there’s only one holiday on our mind this month – Christmas!
OK, so it might seem a little OTT to be thinking about the festive season before guisers have even been out trick or treating but stick with us…
There are only two paydays left until Christmas.
That’s two pay cheques that’ll need to stretch to cover the cost of every day costs, any repayments you need to make as well as all things Christmas.
With that in mind, we’re starting to think ahead to make sure that the bright lights of the festive season aren’t dimmed by financial stress and strain.
To help you get ready for the big day without stretching your budget, we’re sharing handy tips to help you prepare for Christmas spending.
1. Set a realistic budget
Let’s be honest, it has been a tough year for many of us financially. The cost of living crisis has impacted households across the country as we continue to try and grapple with rising costs.
Throw overspending on gifts and celebrations into the mix over the next few weeks and you could be looking at a real life Nightmare Before Christmas.
It might not sound exciting, but it pays to be realistic about how much you’ll be able to spend on Christmas whilst managing everyday costs like bills, food shopping and of course any debt repayments.
Before you get caught up in the festive rush, set a specific limit for your Christmas spending, thinking of things like decorations, gifts, nights out and of course the all-important dinner! It’s also a good idea to leave a small buffer for unexpected costs too!
Rather than looking at having a budget as restrictive, look at it as a way of making informed decisions about where you can save and where you can afford to spend a little extra.
2. Make a gift list
Once you have an idea about how much you have to play with, it’s worth planning who you’ll be spending on.
Writing out a list of people you want to give gifts to – and sticking to it – can prevent the temptation to overspend. It can also help you be honest about who you really want to or are able to gift this year.
It’s important to remember that you are by no means a Grinch by being honest if you’re only able to give gifts to your immediate family. In fact, being honest about cutting the number of people you’re giving to might actually be a welcome relief to others and stop feeling like you need to give out of obligation.
Keeping things simple is also a good idea. Don’t feel pressured to go over the top with presents and instead opt for what the person will appreciate rather than the price tag. Group gifts, like a game or experience, can also be a good idea for families.
And of course, being ahead of the game and starting your shopping early can be a way of bagging bargains. Look for pre-Christmas sales and Black Friday to save on bigger items.
3. Start saving now
Setting money aside over the next two pay days can help spread your Christmas costs.
Even if you’re only able to put away a small amount, every little helps!
It might also be a good idea to cut back on non-essentials if you can. Skipping a few takeaway coffees, making your lunch instead of grabbing a meal deal or swapping your Friday night Chinese or Indian for a fakeaway are easy ways to save a little extra cash.
Starting now allows you to build up a little cushion so you’re not scrambling in December.
4. Get creative with gifts
Sometimes the best gifts are the ones you can’t buy in a store.
Getting creative with presents can be a good way to spread the cost and give something more meaningful.
You could go DIY with homemade treats like homemade cookies or knitted scarves if you’re handy. If you’re not crafty, you could print a photo and put it in a nice frame for a thoughtful gift without a big price tag.
You could also go down the experiential route. If you’re strapped for cash but still want to give something special to a loved one, think about a homemade gift voucher for a day out or a slap-up meal at home.
5. Tuck into Christmas dinner for less
Christmas dinner is possibly the best meal of the year.
The turkey, the stuffing, the roast potatoes… if we’re honest it’s the dinner we all look forward to the most.
That being said, whilst it’s lovely to tuck in with your nearest and dearest cooking up a festive feast comes at a cost.
If you’re planning to host Christmas dinner this year it’s a good idea to plan in advance and pick up non-perishable ingredients when they’re on offer in advance to try and cut costs.
And don’t be afraid to ask others to bring dishes on the day. If you’re making the main course, why not ask someone to bring along the starter or pudding.
Not only is this a way to reduce how much you need to spend but can help everyone feel involved in the day.
6. Swap glitzy nights out for low cost-fun
Doing Christmas on a budget doesn’t mean that you won’t be able to take part in the festivities.
Instead of splashing out on glitzy nights out, why not try free or low-cost activities you can enjoy with friends and family?
Ditch the Christmas movie drive in for a movie night at home with popcorn and blankets or check out local Christmas markets or free community events.
Taking a walk around your local area to see the lights can also be a nice way to get into the Christmas spirit rather than heading into town and being tempted to spend.
7. Avoid relying on credit
If there was ever a time to be tempted by credit or buy now pay later, it’s Christmas.
Costs can quickly add up and it’s understandable that you might think about turning to your credit card for a little help.
However, it’s important to think about how borrowing money to cover the cost of the festivities could have a serious impact on your finances in the new year.
If you’re thinking about putting Christmas on credit, it’s important to:
- Only use credit if you know you can pay it off quickly to avoid interest charges.
- Consider using cash or a debit card for holiday shopping—this helps you stick to your budget.
- If you must use credit, set a strict limit and treat it like cash, knowing exactly how much you’ll repay and when.
By avoiding unnecessary debt, you’ll start the new year on better financial footing.
That being said, we’re always here to help if you find yourself struggling with debt either in the run up to December 25th or in the new year. Our experts are on hand to offer free, confidential advice with zero judgment.
