Top tips for festive spending
START SAVING YOUR CASH NOW TO AVOID A FINANCIAL HANGOVER
C HRISTMAS is fastapproaching so make sure you start planning now.
Last year, families spent around £820 on Christmas typically, previous research from VoucherCodes. co.uk and the Centre of Retail Research suggests.
Many households will have put their Christmas on credit - but with some planning ahead, it may be possible to build a pot of cash and make savings here and there which will stop you forking out more than you need to. If you’re visiting loved ones this Christmas for example, booking travel tickets ahead could help to ease the costs.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, says: “Around one in three people end up putting Christmas on credit, which can prove expensive. Given that you have a bit of time until Christmas, you can use the opportunity to put some cash aside, and use a few cunning tricks to boost your Christmas savings, so you can celebrate this year without breaking the bank.”
Here are Coles’ 10 top tips for building up a money pot for Christmas...
SAVE MONEY EACH MONTH
Set up a standing order to put money into a savings account as soon as you are paid each month, so you’re not tempted to spend your Christmas savings.
CONSIDER MICROSAVINGS
There are a number of approaches you could take. Some banks allow you to round up each spend to the nearest pound and save the rest, while some apps regularly take small sums of cash from your current account and put them into savings for you.
The idea is that they’re so small, you don’t miss the money, but large enough to add up.
SWITCH CURRENT ACCOUNTS
Some current accounts offer interest rates of up to 5 per cent, while others will give you a bonus for signing up - to kickstart your Christmas savings. M&S Bank, for example, will offer a £125 M&S voucher for switching, and another £60 voucher after you’ve stayed for six months.
It’s not a good idea to switch for a bonus alone, but if the account itself suits you, it’s a nice extra for Christmas.
HAVE A PRE-CHRISTMAS CLEAR OUT
Have a look through the cupboards for old presents and things you haven’t used since last Christmas. If you sell them on auction sites or specialist sales sites, you could raise a handy lump sum.
TRY TRADING DOWN BRANDS
If you buy branded goods, try the own-brands. If you buy own-brands, try the basic range. Alternatively, give a discount supermarket a try.
You’re unlikely to like everything you try, but you may find everyday savings you can take advantage of for life - and in the interim you can cut your grocery bill by 10per cent or more and put the savings aside for Christmas.
CUT OUT THE SMALL LUXURIES FOR A COUPLE OF MONTHS
This doesn’t have to involve a major sacrifice, but if you were to drop a family takeaway once a week, a daily coffee, and a drink after work on Friday, you could put aside an extra £200 a month, which would boost your Christmas savings nicely.