With presents to buy, puddings to purchase and trees to dress, December is inevitably more expensive than the other eleven months of the year. If you’re worried about how to manage Christmas expenses, try these emergency budgeting tips to make sure the festive season doesn’t leave you with an unwelcome, overdraft-shaped headache.
Work up a spreadsheet
Some Christmas costs – presents, food, decorations – are obvious, while others, such as secret Santa gifts, crackers and travel expenses, tend to sneak up on you. You might also forget that you spend less on commuting, or more on socialising, over the festive season, making budgeting a tricky task. Start by setting up a spreadsheet, using a budget planner tool, or use good old pen and paper.
Assign a sum to every type of spending
Begin by working out how much you’ll have left after pay day once all your essential bills and monthly outgoings have been paid. If you think you might need a bit more money, look at ways to trim your regular outgoings – for example, by pausing your gym membership – then assign a budget to each festive expense with the cash you have left. The average household spends more than £700 extra in December than in other months, with the biggest portion going on presents, so once you’ve allocated your pennies, don’t be tempted to go off-piste.
Work out where you can make savings
If you don’t have enough in the kitty to cover everything, consider cutting back on luxuries. With budget supermarkets performing well in taste tests, buying cheaper versions of festive food doesn’t mean it won’t be delicious.
Digging out last year’s unwanted gifts and selling them on eBay could help add to the kitty (and is a great place to find bargain gifts). And with Christmas such a busy time for retailers, it’s worth asking if you might be able to take on an extra shift or two.
Discuss your plans with friends and family
If your budget is tighter than usual this year, you’re certainly not alone, so it’s worth discussing your plans in advance. Perhaps you could agree to only buy gifts for the children, set a maximum budget for presents, or arrange a Secret Santa, so everyone buys and receives just one present – Secret Santa generators such as Elfster are useful for this. If you’re having people over, ask everyone to bring a dish, drink or nibble with them, to help spread the load.
Create some cheap and cheerful Christmas traditions
For children, the best thing about this season is festive magic, rather than how much money you spend. Think about the memories you cherish from your own childhood – perhaps it was snuggling under a blanket to watch the same Christmas film every year, seeing Santa’s footprints outside your bedroom (easily created using some talcum powder and a boot!), helping to decorate the tree, or going on frosty walks to take in the neighbours’ decorations. These are the moments that really matter.
Plan ahead
If you leave everything to the last minute, you might find yourself paying over the odds for the items you need. Missing the second-class post for your Christmas cards could cost you a whopping 80p per stamp. Train tickets are often cheaper when they’re bought in advance, and you can avoid paying extra for next-day delivery if you buy gifts online in good time. If you do buy in advance, however, check the returns policy – buying items that can’t be returned in the new year could mean you’re throwing away your money.
Get ready for next year…
Make it your New Year’s resolution to start saving up for next year now. Whether you open a savings account or simply start putting the odd pound coin into a jar, the earlier you start, the more you’ll have for next year. The January sales are also a great place to get great deals on basics you know you’ll need come December, such as Christmas cards, wrapping paper and decorations.
Was this article helpful?