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Sorry to mention this, but Christmas is coming. In fact, even though Back to School still feels like yesterday, some shops already have the beginnings of Christmas displays creeping in.
Christmas is a bit like marmite : you either love it or hate it. But however you feel about Christmas it is one of those inescapable life events that will happen whether you like it or not.
One of the main reasons that many people don’t like Christmas is all the expense involved. It just seems that no matter how hard you try, you end up spending far too much money at Christmas. The average British consumer is expected to spend around £600 this Christmas on food, gifts, decorations, socialising and travelling. Trying to find this kind of money on top of the normal cost of living can take months to recover from and may involve spending on credit cards or, for those with bad credit, taking out a personal loan.
The good news is that if you act now, you can prevent overspending this Christmas. With a bit of careful planning, it’s not too late to avoid financial disaster this Christmas.
The three main things you need to do are:
Setting a realistic budget is the most important thing you can do. Before you spend any money on Christmas, you need to know how much you can afford to spend overall, and then allocate the money between the various things you need to buy.
It really is worth taking time and effort to create an accurate budget, rather than just making the numbers up. Start by making a list of all the things that you are likely to need money for. For example:
Be as realistic as you can about how much you think you need to spend on all the above. If possible, check relevant documents such as bank statements, email receipts etc from last year to get a more accurate idea of what you spent then.
Once you finish making your budget, you will probably be horrified at how much it all adds up to. But it’s better to face the reality of the situation before any money is spent and while you still have time to sort things out. And at this stage, it will become clear to most of us that we either need to trim down our Christmas spending, or boost our finances for Christmas.
So in the next two sections of this article we suggest ways of doing both.
Always keep at the forefront of your mind that Christmas is about spending time with the people you love rather than spending more money than you have and getting stressed about it.
Here are three practical ways of spending less money at Christmas but still having a wonderful time:
There’s a lot of truth in the old saying “it’s the thought that counts”. Remember that the perfect gift is not necessarily the most expensive one, but something that has been chosen carefully for the recipient.
So set a realistic spending limit on each Christmas gift. You may want to be open about this with family and friends to avoid potential embarrassment. If you do so, you may well find that they are relieved as they are also trying to cut down.
If you have a large family it might be time to agree either just to buy gifts for the children, or to start some kind of Secret Santa system so that everyone gets nice gifts but you don’t all have to buy one for everyone.
One of the reasons we can end up spending too much money on Christmas gifts is that we end up buying everything in a last-minute rush, often buying in bulk online just to get the job done. But if you start earlier, there is more time to shop around and get nice gifts at bargain prices.
So once you have sorted your Christmas budget, also make a Christmas gift list. Take time to think about what people would really like, rather than something that is just about ok. Then get looking for the ideal gift at an affordable price.
Also be more adventurous about where you shop. Don’t stick to the same old retailers as usual. Try out some local businesses or markets instead. Also consider buying second hand gifts for some people. Items such as vintage clothing, old books, or antique household items can be a much more special and appreciated gift than something mass produced.
Another option is to make something yourself. Or, if your finances are really stretched, a great idea is to create a voucher to gift your time for something specific in 2025 such as babysitting, cooking a meal, or painting a room.
Whether you are hosting Christmas lunch for a large number or are just at home with immediate family , it’s always possible to cut down your Christmas food bill. Take the time to plan your menus and portion sizes carefully so that you just buy what you actually need rather than too much which will end up being wasted.
And if you have guests coming, make sure you accept every offer of help. Let others bring a starter or dessert, or do the veg. Christmas is all about being together, not about one person or household bearing all the cost.
Also don’t fall into the trap of thinking that you must buy and serve certain foods just because it’s Christmas. Be adventurous and eat whatever you really enjoy rather than what you feel you “should” be eating.
As for socialising, this can be really expensive around Christmas. But again, remember the point is to spend time with the people you want to be with. Which doesn’t have to mean spending a small fortune in pubs and restaurants. You could get together in homes instead for drinks and nibbles, shared suppers or takeaways. Any of which can be just as much fun but will cost far less money.
If you are planning to do all the above but still don’t have enough money for the Christmas you want, there is still time to try and raise some more money for Christmas.
Three possible ways of doing this are:
If you are interested in taking on some extra work in the run up to Christmas, the first place to look is at your current place of work. If there are any opportunities either for overtime or extra shifts, this could be the ideal solution.
Another alternative is to look around locally for temporary seasonal work in the evenings or at weekends. For example large stores, pubs, restaurants, Christmas party venues or Santa’s grottoes. There may be interesting opportunities that could provide the financial boost you are looking for.
If there don’t seem to be any opportunities around, how about creating some yourself. Christmas is a busy time, so if you have any kind of practical or domestic skills, you could offer these locally for a fair price. For example babysitting, pet sitting, cleaning, garden clearing, decorating, DIY and administrative help.
It is very easy to sell unwanted goods online on sites such as Facebook Marketplace, eBay, Gumtree and Vinted. So look through your home for good quality items that you no longer want or need, and try selling them to others. Think particularly of items that other people are likely to be looking for around Christmas, either for personal use or for gifts. For example:
Another option for selling goods is if you have any creative skills you can put to good use. For example sewing, knitting, baking, jewellery making, card making, flower arranging. There are many opportunities to sell home-made goods online, or you could focus on local Christmas craft fairs. Even making and selling a few items between now and Christmas could bring in some valuable extra cash.
Between now and Christmas you still have time to try out various no-spend challenges. This simply means for a limited time deciding not to spend money on something you normally would, and saving the money instead.
For example, if you chose something from the following list and didn’t spend any money on it for a week or even a month, you could contribute an extra bit of money into your Christmas pot instead.
Whichever you choose to sacrifice, it’s only for a short period of time and could be a welcome boost to your Christmas budget.
We hope that this article has given you some helpful ideas as to how to manage your finances this Christmas, and prevent a financial disaster.
If your finances need extra attention, and you are perhaps looking for a debt consolidation loan, remember that Loans 2 Go offer a range of personal loans – including loans for bad credit – which may be able to help.
For more helpful financial and lifestyle tips, visit us here again soon at Loans 2 Go.
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