We all know how easy it is to get carried away during the Christmas period, spending more than we should, and can afford to. It is, however, possible to celebrate and enjoy your Christmas without spending all of your money and maxing out your credit cards.
If you’d rather start the new year without adding to your debt, then here’s a quick guide to help you manage your spending this Christmas.
1. Set a budget for your Christmas spending
The first thing you should do, before you start spending this Christmas, is to create a budget to manage your Christmas spending. When it comes to presents, you should decide how much you want to spend on each person and make sure it fits into your budget. It’s important to also take into account the additional spending that you will be doing on food, drinks and socialising. Christmas budgeting is a way to set limits on your spending, whilst still being able to enjoy yourself. Having a Christmas budget, and sticking to it, will help you avoid racking up unnecessary debt.
2. Track your spending
Many people take the first step and create a budget, but then never check in on it. They just think that when January comes, they’ll worry about it then. This is not the right call and can put you under immense financial pressure at the beginning of the new year. Make sure you track your expenses as you, that way you won’t end up overspending and running yourself into debt.
3. Pay your large financial commitments first
Before you start your Christmas shopping, you should always pay your large financial commitments first. This may include your mortgage, rent or car insurance as skipping these repayments could negatively impact your credit score and result in extra fees/more interest.
4. Look for personalised gifts
If you are on a strict budget then you will be happy to know that a small, thoughtful gift is often worth more than a pricey gift that someone may never even use. People appreciate a thoughtful gift more than something randomly chosen. Before you start your Christmas shopping take a moment to think about what the people on your list would really appreciate or possibly may need. This could be something small like a particular type of flower, chocolate or even a small decor item for their home or something small that they may have mentioned that they would like or need.
5. Shop around and look for deals
As a Christmas shopper, you should always be looking to take advantage of specials. Throughout the Christmas period, many retailers discount their prices as they look to move more volume. It’s not only retailers that often offer incredible discounts. Many supermarkets are also fiercely competitive, providing you with many opportunities to save on your food shopping during the Christmas period.
6. Use buy now, pay later sparingly
There are many buy now, pay later service providers in the UK, which are becoming an increasingly popular way for people to spread out their payments. It is important to be careful when making use of their services, you need to make sure that you can afford to make the repayments and not get caught up in the moment.
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