Christmas is a wonderful time of the year, but it can be stressful if you’re counting the pennies. However, with a little planning and saving here and there, you can have a relatively painless festive season (though I can’t help you manage your actual relatives!)
Spend 30 minutes making a mini-budget
It’s dead easy to budget for Christmas. The key point is not to make things overly complicated. Start by jotting down all the things you’re likely to spend cash on in the next couple of months. Rough estimates will do. I’d consider the following things:
· Gifts for family members and friends
· Cards and postage
· The Christmas meal(s)
· Decorations
· Travel
· Entertainment
Drop all of this into a simple spreadsheet – there are lots of free templates available online – and work out what your total spending will be. You can use this list to set savings targets each week in the run up to December. Or have the satisfaction of ticking things off the list as they are done!
Knowing your budget also means you can manage expectations if money is tight. If you’ve got kids, it’s easy to get swept away in their excitement as the final countdown to the big day commences. If your budget is limited, you can use the next few weeks to explain how Santa is being careful with his cash this year.
Claw back some cash
You shouldn’t have to go without to enjoy Christmas. There are lots of ways to save money or even claim refunds that you might not have thought about.
It’s likely that you are already paying for lots of goods and services that you don’t want or need. These include:
· Subscriptions for things you don’t use.
· Duplicate agreements (like old mobile phone insurance policies, or warranties for things already covered by home insurance).
· Services you only need one of, like music streaming services, cloud storage and anti-virus software.
· Subscription traps, where you signed up for a free trial and haven’t realised that you’re now paying monthly fees.
Most people will find they can free up savings of around £500 to £1,000 or more by following these tips. Best of all, you can claim back any debits on your account that you haven’t specifically authorised through your card provider or e-payments system.
You may also be overpaying for services like broadband, energy or insurance. Check to see if you are out of contract and negotiate new deals that dramatically reduce your outgoings. I saved £600 a year alone by switching my broadband and TV package.
Get clever with your cash
Don’t let the money you’ve saved vanish into your main bank account. You can set up a new account just for these savings very easily online in about ten minutes. There are loads of apps available online that are designed to help you save money, claim cashback and voucher offers while you spend or monitor your weekly spending. Most importantly, work out what money you can afford to put aside each week and set up a transfer so the money goes into your new savings account as soon as your wages or credits land in your current account. That way you won’t be tempted to spend the cash. I lock my debit card for my savings account away in a drawer, as I know I am easily tempted!