Financing Christmas When the Budget is Tight
Although Christmas is the most wonderful time of the year, it’s safe to say that the majority of us feel the pinch afterwards, particularly in the new year. Whether it’s on presents or for the big day itself, splurging over the festive period is all well and good in the moment, but what about in the aftermath?
Preparing and budgeting for the new year ahead is something you can begin thinking about before Christmas comes around, but that doesn’t mean you have to cut back on the fun and festivities over the holidays. Here we offer a short guide to financing a fantastic Christmas on a small budget, to start the new year right.
Remember if you are struggling to find ways to make your money go further this Christmas get in touch today to discuss how we can help you with your own personal finances.
Re-evaluate your budget
Creating a budget for Christmas spending is a fantastic way of managing your finances over the most expensive time of year. Much of this budget tends to go on the presents you buy for others, but what about the other factors, such as the Christmas dinner itself or any parties you intend to throw or attend?
By now, you probably have the majority of your presents, so consider whatever’s left of your budget and how it can be used not only to buy the rest of your gifts, but to your Christmas dinner – the best bit!
It’s likely that your budget will need to be adjusted to account for everything, and that’s absolutely fine. It’s also important, however, to make sure you make up for this adjustment in other areas. For example, will your savings have to be reduced for the month, or will you have to miss out on some of those gifts you were going to buy for yourself?
Consider the best way for you to remedy your Christmas budget and make the necessary changes, to make the most of the festive period, avoid falling into debt and to start the new year as you mean to go on.
Forget New Year’s resolutions and start early
It’s all well and good having a New Year’s resolution in mind but research shows the majority of them tend to fail. If you were thinking of putting financial considerations to one side until the Christmas period was over, the chances are you will struggle to get back on track as quickly as you’d hoped.
That’s why we would recommend taking a look at your finances now, in time for the new year. There’s no need to wait until 1st January to start getting your finances back in check, and you’re bound to end up spending even more with that mindset than if you were to keep your budget and finances on track.
Start by looking at your current financial situation, where you will most likely be after Christmas (considering all expenses over the festive period) and where you would ideally like to be afterwards. From here, make a plan that will get you to your preferred financial state as quickly as possible.
Keep bills and necessities at the forefront of your mind
Any luxury spending should only be considered once bills and other necessary expenses have been paid off. As tempting as it is to spoil your loved ones rotten at Christmas, you should keep in mind the costly bills that are coming in January and make sure you keep enough money aside for them.
How could you reduce the cost of Christmas?
While it might be a little too late on in the day to reduce the amount of money spent on presents this year, there are other ways that you can lessen the load of financing for Christmas.
Shop around for your Christmas food. You will often find different offers in different supermarkets, so it’s well worth heading to a number of shops to stock up on your items whilst also getting the best deal possible. Heading to the nearest supermarket is sure to cost you more money than you could be spending on your dinner. If you’re thinking about getting plenty of drinks in, you’ll find the best deals online.
Make sure you write a list before heading out to the shops and try to avoid the supermarket when you’re feeling peckish. Walking through the aisles without a list will encourage you to purchase unnecessary items, and if you’re hungry you’ll end up buying snacks, too.
Prepare for next Christmas!
If your budget allows for it, think about checking out some of the Boxing Day and New Year sales, to stock up on Christmas presents for next year. Getting into this habit could save you hundreds of pounds in the long run!