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Christmas can be an expensive time of the year for many people. You want to get involved with decorating your home, getting delicious treats and, of course, the traditional Christmas dinner, and also treating your family and friends to gifts that they are going to love. However, for many, the reality of this is dealing with a situation where they have overspent in December, which is why so many of us spend January on a tight budget, struggling to afford anything other than the basics. The good news is that there are some tips that you can use to keep December more financially friendly for yourself and avoid getting into money trouble just because of Christmas. After all, Christmas isn’t supposed to be stressful.
Set a Budget
Firstly, it’s useful to set a budget for your Christmas spending. You might find it useful to set an overall budget for everything that you are going to buy or set different budgets for all the different aspects of Christmas such as home decorations, gifts, and festive food. Don’t forget to budget for all those little things that might add up over the month too, like Christmas parties, going for drinks with friends, and Secret Santa gifts. Once you have a clear idea of how much you will be able to spend without putting yourself in financial distress, it will be easier to stick to that and manage your money better throughout the month.
Don’t Get Gifts for the Sake of It
When it comes to giving gifts, most of us want to surprise our loved ones and friends with something thoughtful under their tree that they know we have chosen because we knew they were going to like it. It’s easy to get carried away when it comes to gift-giving but the truth is that a lot of the time, this leads to a situation where you’re getting gifts for the sake of it and might even be wasting your money on something that the recipient isn’t even going to use. If you’re really not sure what somebody might like, you could save money getting them a gift that you know they’ll use, such as a voucher for their favourite shop, rather than spending your money on something they might not use that might also cost more.
Use a Credit Card Responsibly
For some people, it’s hard to get through December without borrowing some money. However, if you are going to do this, then it is important to be responsible with your borrowing. If you can, use a low-interest credit card or a credit card with a no-interest period that you know you will be able to pay off in full once you are paid in January or across the next two to three months. What you want to avoid is a situation where you’ve used a credit card for Christmas but are only going to be able to afford the minimum payments, as this will keep you in debt all the way until next Christmas.
Consider a Short-Term Loan
Another borrowing option that is often popular at Christmas is short-term loans. However, how you approach this is important since many people make the mistake of borrowing a lot of money now and worrying about it later, which brings financial problems for you further down the line. If you need some additional money for Christmas, a short-term loan will cover you, but it is important to only borrow what you need and make sure that the agreed repayments are going to be affordable for you. You can use Pay Day UK to find the best loans for your needs this Christmas. Pay Day UK is a UK broker of Pay Day Loans that helps you find the best financial products for you when you enter your details. They’ll search a large panel of lenders so that you can get all the results in one place and then let you know which loans you are most likely to be accepted for.
Regift Items
Let’s face it – we’ve all had gifts from people who don’t know us very well or Secret Santa gifts that we appreciated, but probably won’t use. There’s no need to hang on to something that is gathering dust in a cupboard just because it was a gift to you; it makes no financial sense and will only leave your house feeling more cluttered. Although you might feel slightly guilty by regifting something that you are not going to use, be realistic about the situation and remember that you’re giving the item to somebody who’s probably going to actually get some use out of it more than you will. Just don’t give it back to the person who gifted it to you because that might not go down very well.
Keep Your Gift Circle Small
When it comes to buying Christmas gifts, lots of us feel pressured to buy something for multiple people, but the truth is that most of them won’t be expecting anything other than Merry Christmas and perhaps a card. When it comes to people like neighbours, colleagues, and friends that you aren’t particularly close with, you really don’t need to buy them something for Christmas. If you really, really want to then consider getting something inexpensive like chocolate; it doesn’t have to mean you spend a lot of money. Ask yourself, why do you feel like you have to buy these people gifts? Chances are, you might not even know, or feel that society expects it of you – which takes all the fun out of gift-giving.
Shop Around for Christmas Food
There is no rule that says you have to spend a lot of money on the food that you eat at Christmas. Nobody is going to know the difference at Christmas dinner if you got your veggies from Aldi or splashed out at Waitrose because they are probably going to taste the same anyway. When it comes to buying Christmas food there is nothing wrong with looking for the cheaper options. Some supermarkets offer much cheaper options that are just as good, so spend some time looking around to save your money. And, don’t forget that there really isn’t anything wrong with using frozen food for Christmas dinner, no matter what your gran might say.
Ask Family to Pitch In
If you are going to be hosting Christmas dinner this year, then don’t be afraid of asking your family to pitch in and help with buying the food. Most people will be happy to do this because you’re saving them much more compared to them buying Christmas dinner for themselves and they get the day off too because they’re a guest at yours instead. If you’re hosting a lot of people on Christmas Day, ask in advance about everybody chipping in for Christmas Dinner rather than putting all of that financial burden on you.
Christmas can be a fun, family-centred time of the year where you get to spend time with people and show your appreciation for others. But, it can also be very expensive. This year, instead of facing financial stress or even difficulties, keep these money-management tips in mind.