Money Matters: Start preparing for Christmas
In this week’s Money Matters column, Wrekin’s debt and energy manager Dan Bebbington shares some of his top tips to help you get ahead for the most expensive season of them all.
With just three short months to go until Christmas, now is the perfect time to start preparing financially if you haven’t already.
By planning ahead, you can keep tabs on your spending, avoid splurging on last-minute panic purchases and enjoy the holiday season stress-free. Trust me – your future self will thank you for it!
The first thing to do is start saving. Setting aside a small amount each week or month will allow you to spread the cost of Christmas.
Start by working out your budget for things like gifts, decorations, travel, food and socialising, and divide that by the number of paydays between now and then. This should be an affordable amount that you can set aside after your bills and other necessities are covered. If it’s not, you’ll need to work out what you can cut back on.
This amount will be different for everyone – don’t feel guilty if you feel it’s not as much as you would like to be saving.
By working out what you can afford now, you will also be able to prioritise. Is spending a little extra on close family more important than new decorations, for example?
Some banks, including Monzo and Starling, allow you to set up individual ‘pots’ for specific savings goals, which can make it easier to help you keep track of your progress.
Another tip is not to let yourself be pressured into splashing out on hordes of expensive gifts if you can’t afford them. You can get amazing bargains from charity shops, Facebook Marketplace, and sites like eBay and Vinted, often in brand new condition.
You can also save a fortune by getting creative. Whether it’s cooking or crafting, there are plenty of potential presents you can conjure up yourself at home for a fraction of the price. Some crowd pleasers are jams, chutneys, baked goods, and knitted or crocheted items.
Alternatively, you could give ‘coupons’ for things like a night of babysitting, a homemade dinner, or help with gardening.
For presents you know you will need to buy, start keeping an eye out now for any sales or discounts. You can maximise savings by using a cashback site for online purchases, and Wrekin Housing Group customers can also access discounts through the Housing Perks app.
It’s also important to set boundaries when it comes to your spending, and be honest with loved ones if you’re worried about costs. For example if you’re on Christmas dinner duty, why not ask other people attending to contribute a side dish, dessert or drinks?
You may also find it helpful to agree a realistic present budget in advance with family members or friends, or even suggest a Secret Santa.
Remember, your loved ones wouldn’t want you to go all out for Christmas if it would land you in a precarious financial position.
25th September 2024