Helpful tips to save money this Christmas
Christmas and money may not seem like the perfect match, but it is possible to keep your finances healthy while still enjoying the season. Hood finds out some of the best and easiest ways to keep yourself in the black this Christmas…
Build a foundation
The average family in the UK will spend approximately £500 extra this month, on top of their regular outgoings, on gifts, food, alcohol, clothing and toiletries—and this is before a single Christmas night out has been had.
Rachel Stewart, of RJ Stewart Wealth Management, urges families to take a long hard look at their daily finances before overspending: “Ask yourself ‘What can I really afford to spend?’ Christmas is one day—are there things we can forgo to keep us out of the savings account or overdraft? Once you’ve decided what you can spend download a budgeting app and apportion funds to gifts, travel, food, decorations etc accordingly.”
Try alternative gifting
A recent study revealed Brits spend an eye watering £19 billion on gifts at Christmas so, if you’re feeling frugal and creative, then why not try making some Christmas gifts and cards instead? From small craft items such as soap or candles to cooked gifts such as chutney or jam, this added personal touch will mean a lot to friends and family and save you vital cash.
Another simple way to save money on presents is to agree on a budget for each person and stick to it, or, if you’re dealing with a large group then suggest a secret Santa system, where you’re limited to buying one present at a certain price, which saves a huge amount of time and money.
If you have children, it’s all too easy to get carried away, so it’s important to manage their expectations. Try a rule of buying them five presents: one thing they want, one thing they need, one thing to wear, one thing to read, and one experience to share with the family.
Shop clever
We love a bargain, and we think you probably do too - but did you know that some of your favourite retailers have online or bricks-and-mortar outlets, where you can make healthy savings on presents or Christmas party outfits?
Our particular favourites belong to Mango, Office Shoes and All Saints, where you can snap up a bargain.
Also great are checking out voucher code websites, or taking a day trip to outlet villages like Livingston Designer Outlet, Sterling Mills and Gretna Gateway - but remember to take a shopping list and stick to it!
Save pennies elsewhere
Before you go big on the bulk-buying, go through drawers and cupboards for things you don’t want or use anymore, and list on sites like eBay and Depop to make some extra cash to fund your festivities. Plus, these websites are also great resources for cheaper gifts - just because it isn’t ‘this season’ doesn’t mean it won’t be a great present.
Don’t buy new outfits - shop smart instead
Self-gifting racks up – so if you want to spruce up your wardrobe but can’t stretch to a new dress or pair of shoes, then ask friends if they’d be happy to trade outfits - meaning you can rock a new look without spending a penny.
You can also try fashion rental platforms online for any formal nights out - we love Hurr Collective for great designer brands at a fraction of the price.
Use cashback sites
When it comes to Christmas spending, it isn’t always about gifts as Abigail Yearley, spokesperson at TopCashback.co.uk explains: “Be sure to make use of cashback sites every time you buy online. Websites like TopCashback essentially give you part of your spending back when you shop with a range of brands like Topshop, John Lewis, Curry’s, Boots and more. Right now, new members can get £15 off a Tesco grocery shop, when signing up, as well getting up to £12 cashback on their food shop with Iceland, Asda, Waitrose or Sainsbury’s.”
Get your guests involved
Entertaining is a huge part of the festive season and the cost of celebrating the festivities can soon add up. Instead of footing the bill, try the ‘potluck’ policy, where each guest is asked to bring along a dish, to help share the cost and the time burden. Give guests a brief to stick to and you’ll soon have a table groaning with goodies for everyone to enjoy, without worrying about the finances.
Use credit cards cleverly
With regards to credit cards, it can be tempting to splurge on these and worry about the balance in January - but remember it is best not to spend on a credit card unless you can afford to pay off what you spend in full.
If this isn’t possible and you need the extra boost, use a 0% card to spread the cost – but make sure you pay it off before the deal ends. For bigger purchases Rachel advises using a credit card for peace of mind: “I’d always consider using a credit card when paying online for larger purchases. This will offer you some protection in terms of faulty goods or if they don’t arrive. But absolutely avoid store cards at all costs. They will try to reel you in with a percentage off your first purchase but store cards usually charge far higher interest rates than the average credit card, sometimes as high as 30%.”