Simple tricks will add up to a sackload of savings
HARVEY JONES GETS SOME EXPERT ADVICE AS WE COUNT DOWN THE SHOPPING DAYS TO CHRISTMAS
THE Christmas countdown begins in earnest this week, with less than 100 days to get our act together.
If the annual shopping splurge fills you with dread rather than excitement, it’s time to start preparing for it now.
By cutting your spending and building your savings, you will be in a much stronger position to go on a spree when the time comes. Especially after such a difficult period.
It may be too early to get excited about Christmas, but it’s not too early to plan for it.
Start your shopping early
Christmas may still seem a long way off, but it will probably come around sooner than you expect.
Zainab Kwaw-Swanzy, millennial finance specialist at Barclays, says it isn’t too early to keep an eye out for seasonal deals.
“Many of us buy wrapping paper, crackers and other festive staples at the last minute, when demand and cost is highest.
“Take advantage of deals in the run-up to Christmas instead.”
Supermarkets start advertising two-for-one offers on Christmas basics months in advance, she says.
“This will not only save you some money, but spare you the mad preChristmas rush.”
And if you are getting worried about the expense, then talk to a family member or good friend about your financial situation.
“It can help you feel more in control, especially with more social events, gift buying and other festive expenses coming up.
“A Barclays Money Mentor can give you free, impartial guidance to get you on track, even if you are not a Barclays customer,” Zainab says.
Alternatively contact the free Government-funded guidance service moneyhelper.org.uk.
Simon Rabin, founder of savings and investments platform Chip, warns against making unnecessary purchases on Black Friday, which falls on November 26 this year.
“Ask yourself if you really need those discounted items, whether they are actually bargains and if you can afford them,” he says.
Price comparison sites such as idealo.co.uk and Amazon price tracker camelcamelcamel.com can reveal the price history of products, allowing you to see if they are good deals now.
“Joinhoney.com, which is a Google Chrome plug-in app, will automatically check for any promo codes to get you an even lower price,” says Simon.
Boost your festive spending power
Simon says it’s never too early to start saving for Christmas – some of Chip’s customers begin in the spring.
Using one of the many apps offering tricks and incentives to encourage regular savings helps to automate the process too.
For example, Chip analyses your spending and uses artificial intelligence to work out what you can afford to save, then moves it into your savings account – while warning you what it is doing.
And Moneybox rounds up your purchases to the nearest pound, and puts the extra money into a savings or investment account.
Money management app Plum also uses algorithms to work out how much you can save, on the basis that putting money away is easier if you don’t know that you are doing it. It also has fun features that could allow you to, for example, put money aside every time it rains.
Plum’s savings expert Jess Williams says the best way to save money is “little and often”, stashing away sums on a weekly or daily basis.
People who set a savings target save up to £550 a year more than people who don’t, according to the Money Advice Service.
Jess says: “Work out the rough amount you’ll spend on each person and add them all up to set your target. Monitor your savings to see if you are on the right path.”
Also keep an eye on your spending.
“Use an app to show you all of your transactions and give you monthly spending reports so that you can see which spending areas have saving potential,” she adds.
Ask yourself if you really need those discounted items, whether they are actually bargains and if you can afford them Simon Rabin on the perils of Black Friday, which is on November 26
Draw up your Christmas budget
Tafari Smith, head of savings at RCI Bank, suggests taking the Christmas budgeting process a step further.
“Work out your entire spend on gift, food and entertaining, and where you can save a bit of money,” Tafari says.
“Preparing a weekly or even monthly meal plan in the run up to Christmas is a great way to get organised and cut down your costs.”
If you have built up some Christmas savings, resist the temptation to raid them for any other purpose, he adds.
Declutter before the winter months, too, and sell anything you no longer use or need.
“Look for car boot sales in your area, or use Facebook Marketplace, Gumtree, Depop, eBay or Etsy.”
When buying new electronic devices such as phones, laptops or gaming consoles for Christmas, see if you can get money off by trading in your old tech, Tafari adds.
He also suggests taking advantage of great supermarket deals in the run-up to Christmas, especially non-perishables or freezer fillers.
“The price of popular items like turkey or ham inflate in December so it can be worth stocking up ahead of time.”
Andy Barr, personal finance expert and co-founder of pricetracking website alertr.co.uk, says save money by having nights in rather than constantly going out.
“Save money with a homemade meal or takeaway, a movie night, pamper night or even a house party.
“Ask everyone to bring a dish and a bottle to spread the cost.”
While many dashed out to get their nails, hair, eyebrows and eyelashes done the moment lockdown ended, question whether your beauty regime needs to cost as much as it did before the pandemic.
“Embrace your natural beauty and save too,” Andy says.