When the festive feeling starts, with tinsel, baubles and wrapping paper everywhere, it can be easy to start spending beyond your means. Maybe you go a little overboard with the decorations, feel the need to buy every toy on the market, or have a last minute panic on Christmas Eve and buy everything in an unorganised rush.
The last thing you want to worry about is post-Christmas debts. But creating a budget well ahead of time is essential – and there won’t be any of those January blues.
Here are six helpful tips for creating (and sticking to!), a holiday spending plan:
- Know Your Limit
Begin your holiday budget plan by determining what you can comfortably allocate for Christmas spending.
- Save Throughout The Year
Create a separate savings account to put some money away each month. If you start in January, you’ll have 11 months to save before heading to the shops. Divide the limit that you decided on in the first step, by the number of paydays there will be before Christmas – the amount you get should be the amount you deposit each time you get paid. Kara, from ChelseaMamma, recommends saving points on loyalty cards throughout the year, and using them wisely to buy Christmas presents come December.
- Make A List (And Check It Twice)
It is very important to create a holiday budget by creating a list of everyone you’ll be buying gifts for, as gift-giving will take up the majority of your holiday spending. Set a specific maximum amount to spend on each person. Write your budget right at the top, across the page, then list everyone you need to buy for and any other holiday expenses (decorations, Christmas party dress, food and entertainment and postage for gifts and sending cards).And don’t forget about your nanny or other care providers — it’s usual to offer an end-of-the-year bonus. To learn how much to give, read our holiday tipping guide >> Estimate an amount for each item on your list and add it all up. Is this number higher than the limit you decided on in the first step? Go back over your list and make adjustments.
- Price Check Online
Research the prices of the gifts and decorations online before heading to the shops; you may find better deals. When you find an item you wish to buy, do a search for the name of the shop and “voucher codes” before handing over any money. Most online sellers offer discounts and free postage throughout the festive season.
- Look Out For Social Media Deals
Follow the social media sites of shops that sell some of the items on your list. Often around Christmas they will tweet and post on Facebook about promotions and sales.
- Stick To It
Keep to your budget and check it every week, to make sure you’re on track. If you feel you might be going over your budget, make simple cuts. Change a dinner party to a ‘bring-your-own’, skip a trip to the cinema and hold a film night at home instead.
It is easy to go overboard with spending at this time of year. Keeping to a Christmas budget can feel a challenge, when you want to splash out on gifts, refresh the Christmas decorations and attend Christmas parties in a new dress each time. But remember that you don’t want to be left feeling depressed, when the holidays are over and you’re left with the credit card bill.
Creating a spending plan and sticking to it throughout the holiday season is the best way to keep things under control so your Christmas memories won’t come with January regrets.