With just a few months to go until Christmas, now is a great time to start thinking about how you’re going to manage your money in the build up to the festive period.
It may not be as exciting as decorating and wrapping presents, but getting your festive finances in order is arguably the most important thing you can do to prepare for the big day.
By planning ahead, you can stay in control of your spending, avoid last-minute splurges and enjoy the festive season with less stress. Your future self will be glad you did!
A good first step is to start saving. Even setting aside a small amount each week or month will help spread the cost. Work out a budget for gifts, food, decorations, travel and social events, then divide that by the number of paydays you have left.
Make sure it’s an amount you can comfortably put aside after bills and essentials. If it feels unrealistic, think about where you might be able to cut back.
Remember, everyone’s circumstances are different, and you absolutely shouldn’t feel guilty if you can’t save as much as you’d like. By being honest about what’s manageable for you right now, you’ll also be able to prioritise. For example, is spending more on a special family gift more important than splashing out on new decorations?
Some banks, like Monzo and Starling, let you set up separate ‘pots’ for different savings goals, which can make it easier to keep track.
Don’t feel pressured to overspend on presents. Charity shops, Facebook Marketplace, eBay and Vinted are great places to find bargains, often brand new. Getting creative can also save a fortune – homemade chutneys, cakes, knitted items or even offering your time through ‘coupons’ (for things like babysitting, cooking a meal or gardening help) can make thoughtful and low-cost gifts.
For items you’ll need to buy, get a list together early so you can keep an eye out for sales and discounts, rather than rushing to the nearest shop on Christmas Eve and paying over the odds. Cashback sites can also be a great way to save on online purchases.
It’s also important to set boundaries and be upfront with friends and family if you’re worried about costs. If you’re hosting Christmas dinner, for instance, why not ask guests to contribute a dish, dessert or drinks? If you’re worried about the mounting cost of presents for friends and family, now’s a good time to get in there first and suggest sensible budget for everyone to stick to, or even organise a Secret Santa.
Most importantly, remember that your loved ones won’t want you to put yourself under financial pressure for the sake of Christmas. Taking steps now will help make sure you can enjoy the celebrations without worrying about what comes next.