Once the festive season is over many of us are left facing large credit card or bank bills. We want to provide that perfect Christmas feeling regardless of the cost. You may be thinking that this is to year to change that but don’t know quite where to start… If you’re wondering how to start saving for Christmas then this is the post for you!
This year, by following these steps you can reduce the unexpected bills while still having just as much fun. Saving for Christmas doesn’t have to be daunting!
Despite taking on extra hours your December wages probably aren’t going to cover the cost of everything you want. This can lead to people spending on credit cards or applying for loans.
Are you ready to start saving for Christmas now?
By starting saving for Christmas early, you are able to spread the cost and relieve the pressure on yourself. You can do this by putting a bit of money into a savings pot every month or joining a savings club. Skint Dad has a really good post here on different savings clubs.
The same methods won’t work for everyone but hopefully you’ll be able to find something here to help!
1. Set a budget
The average spend, according to the Money Advice Service, is £500 per household. This includes food, presents, travel, decorations and much more.
The first step to saving for Christmas is to work out how much you actually want to spend. Look at what you’ve spent in the past and use this as a point of reference. If you normally spend £2000+ there’s no point setting a budget of £500 because its just not realistic!
Write down a list of everything that you will be spending money on.
- Who you need to get presents for
- A food shopping list
- Parties or events that you know of
- Decorations and other bits
2. Work out how much you need to save each month
Once you have worked out your overall budget divide this by the number of months that you have left. If you want, miss out December and then any extra you earn in December will be a bonus.
You have budgeted £1500 for your total spend and it is August. 5 months till Christmas so you will need to save £300 a month.
3. Decide where you are going to save your money
Are you going to create a separate Christmas savings account with your bank? If so pick one with a good interest rate and you’ll save even more! Some accounts pay interest on a monthly basis so you can really see the amount ramping up.
Maybe you just want to keep a spare change tub at home or a standard savings tub. I use a smash-able money box so that I’m not tempted to dip into it throughout the year
If you’re looking for a money box, places such as Home Bargains or B&M do them for under £5. I love these shops and find they are absolutely great for getting whatever you’re after at a cheaper price.
4. Start saving for Christmas now and do your shopping early
Picking up crackers and wrapping paper in the January sales or buying a present a month, the same idea works.
If you buy things early and across the year you are spreading the cost. This will relieve the pressure and expense of having to buy it all in a rush, at premium prices.
By buying things in the sales you can save an absolute fortune. The item will often be cheaper simply because it is out of season or ‘old stock.’ Gift sets are a perfect example of this!
If you do buy things in the sales and throughout the year I would keep track of this so that you don’t forget what you’ve already purchased. Otherwise you run the risk of buying things twice or forgetting it so you end up buying more. This is especially the case for kids as the stigma that they all have to have an equal number of presents or money spent on them is very common!
Enjoy the time spent with family and friends and remember, memories last much longer than any item.