Four ways to save for Christmas

For many, Christmas is the most wonderful time of the year — but it can easily become the most expensive, too. With the weather outside so frightful, many of us head to the shops or go online to blow our budgets on last-minute gifts and decorations in the run-up to the 25th of December.

The typical UK household spends over £500 extra in December on everything from food and alcohol to books and music. With a little sensible financial management throughout the year however, you could be able to join the celebrations debt-free.

Here are four ways to fund your festivities.

  1. Set up a Christmas savings account

It might feel difficult to save for an event that’s still months away, but creating a separate savings account for Santa’s big day will help to take the pressure off when he finally does come to visit. 

Set up automatic payments to come out when your pay comes in and try to make it difficult to access the money by not linking your account to a payment card. Some banks also offer a feature that rounds up all your card payments and puts the difference into a savings pot.

  1. Make a shopping list

Impulse buying can be the downfall of many budgets around Christmas time. Try to make a realistic shopping list several months in advance and start picking up your gifts in drips and drabs to spread out your spend. 

Planning ahead will give you time to put thought into your presents as well as giving you more chance to spot if and when an item is reduced or goes on special offer.

  1. Recycle or sell unwanted gifts 

We’ve all probably had to force polite enthusiasm about an unusual or inappropriate gift we’ve unwrapped on Christmas day. Just because something isn’t right for you doesn’t mean it’s not right for someone else however, and recycling or selling your unwanted gifts could help to keep costs down next time around. 

If you can’t return a gift, consider whether you know anyone who’d appreciate it or research if there’s any demand for it on online marketplace sites such as eBay or Esty. Getting rid will help you to clear unnecessary clutter while putting a little extra cash in your savings pot.

  1. Consider skipping gifts altogether

While many people talk about the joy of gift-giving, others see it as an act that creates an obligation to give back — regardless of whether they can afford it. If you know someone who feels this pressure or if you feel it yourself, can you raise the idea of going gift-free?

Christmas represents an opportunity to spend time with friends and family who we may not see as often as we may want to. For lots of people, particularly those trying to reduce their festive spend, that alone could be enough. 

Have you already started getting prepared for Christmas? By putting one or more of these ideas into action, you could enjoy the festive cheer for less this year.

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