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5 min read
Stick to your budget and don’t let overspending ruin your holiday.
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The countdown to Christmas is officially on, which means it’s nearly time to wear a festive jumper and spend your weekend at the local Winter Wonderland.
Although this season is full of cheer, it does come at a cost. First, there’s Black Friday, and then there are the numerous trips to the supermarket to get ready for Christmas lunch, dinner, and drinks.
This means festive expenses can soon spiral out of control, especially if you haven’t already set a budget. But the good news is there’s a way to avoid overspending and still enjoy the 12 days of Christmas.
Monthly expenses don’t stop in December, so it’s important to know your outgoings and what bills are due. This should always be a priority because you don’t want to start 2025 in debt. Once you’ve accounted for these expenses, you can then look at what money you have left for the festive season and create a budget. If you’re struggling to find some extra cash, check your accounts to see if there’s an opportunity to cut back on spending.
Your budget will naturally give you an overall spending limit, but it’s also a good idea to separate the limits into categories. For example, set a limit for your gifts, food and then any activities. By having separate limits this will keep you on track and also highlight if you’ve underspent, which can then be used to top up your savings account.
Before you start spending any money, write a list of exactly what you want to buy. Then research what each item costs and align this with your spending limits. Make a note of each item and always refer to this while you shop - ticking off each item as you go. This should hopefully prevent any impulse purchases.
Black Friday is the main shopping event of the year, so it’s natural to be excited - and maybe a bit daunted. However, don’t get distracted by items that aren’t on your shopping list and focus on what you need to buy. Plus, remember to cross-check the offer with your previous research to check whether you’re actually getting a good deal.
Due to its popularity, Black Friday isn’t just one day of sales. Retailers now discount items in the run up to the main weekend. Keep an eye on the items you want to buy now, and if the reduced price works well with your budget then it’s a good time to act. Plus, there’s another opportunity for deals on Cyber Monday, so don’t focus all your attention on Black Friday.
If you’re spending money during the sales, then don’t forget to utilise any cashback or rewards. Check your bank account for any offers and try and get cashback when you can. It might only be a small saving, but it can soon add up - especially if you’re spending more than a normal month.
Shopping early for your Christmas food is always a good idea. This is because it avoids the last minute dash to the supermarket where you may end up panic buying unnecessary items. Instead, order your shop online a few weeks before Christmas and schedule it to arrive when it suits you.
When the shops are full of glittering Christmas decorations it can be tempting to splurge and purchase some more. But, your decorations from last year will be just as good, and it’ll save you a small fortune.
Another way to save money during the festive season is to organise a Secret Santa for your family. This means you buy one present, rather than multiple, and you only spend a certain amount of money. Plus, you can also ask everyone to create a small list of gifting ideas, so then you know whatever you buy is something they need or want.
Spending time with family and friends is the most important part of Christmas, so try and set a challenge of making the most of free activities. Host a film night at home, go on a family walk in the countryside or set up a board game tournament with ones you already have at home.
If you want to be prepared for next year, then you could buy your gifts in the January sales. These deals are normally better than the ones on Black Friday, so you could save a lot more money. However, always make sure you have the budget to make these purchases so you don’t get into debt.
If shopping in the sales isn’t possible with your budget, then instead use the end of the festive season as an excuse to set up your savings plan for next year. As you have longer to save, you can do so little and often, which should make next Christmas even more affordable.
