Don’t let festive finances spin out of control
WHILE everything else has changed this year, one thing is still rock solid and steadfast – December 25 will still be Christmas Day. Of course, for some, it’s likely to be a very different Christmas.
Perhaps though, the bronze lining to the hideous spectre of Covid throughout the festive season, is that it may just take off some of the cost and pressure that many feel in the run up to the big day.
Here are some key thoughts about keeping Christmas finances under control.
1 LET THE FINANCES RULE, NOT THE FESTIVITIES
DON’T design a lust list of how to have the best possible Christmas. For most people that just leads to debt or disappointment. Instead, first work out how much you’ve got to spend and ask what’s the best Christmas you can have with that budget.
2 MAKE A NO-UNNECESSARY PRESENT PACT
YES, it’s the season of goodwill but you don’t need to turn Christmas into a retail festival.
Buying unnecessary, often unwanted gifts for friends and family because they bought you a gift just adds to costs, stress and isn’t good for the environment.
See my full mse.me/ banChristmaspresents blog for more on the theory.
3 EARN FREE £125 IN TIME FOR CHRISTMAS
NEWBIES to hsbc.co.uk can get free £125 switching to its Advance account – to qualify, you need to fully switch, including two or more direct debits/standing orders, within 30 days, and pay in min £1,750/mth (equivalent to a min £25,600/yr salary).
The cash comes 30 days after the switch – so in time to help with the Christmas costs.
For full eligibility see mse. me/topbankaccounts.
4 GIVE TIME NOT MONEY
PRESENTS don’t have to equate to big bucks. Quite often loved ones prefer personal gifts, like homemade jams or sweets, or even just your time (which is free).
Go to mse.me/Christmas GiftCheques and print out a promise to someone.
5 SET UP A CHRISTMAS CUPBOARD
WORK out now what you want to buy, then if you spot a bargain, you can pounce on it when there’s a code, voucher or discount that’s cheaper.
Even better, once you buy a present, bag it, wrap it, and pop it in a Christmas cupboard – gradually getting the chores done.
6 EARN 5% CASHBACK ON YOUR CHRISTMAS SHOPPING
IF YOU’RE going to be spending for Christmas you might as well do it on a card that pays you.
The no annual-fee americanexpress.com Everyday credit card pays 5% cashback on your first three months’ spending (max £100), then up to 1% after.
Get it now and this coincides with the high Christmas-period spend (cashback won’t be paid till a year later, and after you spend £3k+). Set up a direct debit to repay IN FULL each month to avoid the 22.9% rep APR.
Martin Lewis is the founder and chair of MoneySavingExpert.com. Get his free Money Tips weekly email at moneysavingexpert.com/latesttip