DOUGH HO HO!
Here’s how to make sure your pockets jingle all the way through to the new year, writes TRICIA PHILLIPS
WE ARE expected to spend an average of £538 each on Christmas – which is £152.70 more than we can afford. One-in-four of us will be forced to rely on plastic to pay for the festivities, while around one-in-10 will end up in the red and dip into an overdraft.
Similar numbers will turn to expensive store cards to fund their spending, according to research by investment firm Hargreaves Lansdown.
Women spend the most on presents, food and drink, and men splash more cash on going out and the little extras.
Overall, women spend more at £601, compared to £524 for men.
The average person will spend £311 on presents, £121 on food, £51 on going out and £49 on extras such as decorations and festive outfits.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “From the first Christmas advert to the last-minute junk email, you’ll be under pressure to spend a fortune this Christmas, so it’s no wonder that most of us end up blowing the budget.
“We might start well by carefully planning what we’re going to spend. Unfortunately, by the time we’ve made it through the festive hype and the ‘irresistible bargains’, more than half of us will go overboard – racking up an average overspend of £152.70.
“It’s one of the reasons why so many people end up falling back on credit to fund at least part of Christmas.”
While it’s easy to spend beyond your means, there really is no need to start yet another year with a debt hangover. Here are seven tips to avoid a festive overspend:
STICK TO YOUR BUDGET
HALF of people start well by deciding on their budget – splitting the sum they can afford between their expenses. This is the best way to keep costs under control. Once you have a budget, the trick is to stick to it and not be lured into spending more. Throughout the shopping season you’ll be tempted to overspend – there’s a whole industry devoted to making you do this. Before you do, force yourself to leave 24 hours before making a purchase to be sure this is something you really need. If you decide to go ahead, work out where you can squeeze the extra cash from in your budget. If you can’t make a saving elsewhere, don’t buy.
DITCH THE EXPENSIVE EXTRAS
SOME things we do because they are traditions, but they’re expensive and nobody really values them. Do you really need festive liqueurs or fancy crackers?
Don’t just assume everyone else wants to stick with old traditions, ask them. Vintage is all the rage, so dig out some of those cool, older and fun festive bits instead.
RESIST UPSHIFTING BRANDS
SALES of premium ranges soar at Christmas as we throw caution to the wind and treat ourselves to posh ham and top-of-the-range cheese.
There’s no reason why you can’t eat the same things you enjoy all year round. If you’re determined to treat yourself to a few luxuries, it’s worth trying the cheaper premium ranges at the budget supermarkets.
SLASH YOUR GIFT LIST
IF you’re struggling to stretch your budget, cut the number of presents you buy. Talk to groups of friends or family and agree not to buy for one another this year.
You can just buy for the children, or run a secret Santa, so you buy for one person in each group.
BUY SECOND HAND
YOUNGER children aren’t going to care whether it comes in the original packaging, so you can pick up second-hand toys for a fraction of the price.
Just ensure there is no damage that could be dangerous and be wary of the finish on unbranded toys.
Adults, meanwhile, may well love a vintage gift. Even hard-to-please teenagers may agree to technology that’s a year old if it means they get their favourite brand. Look out for refurbished items that come with a warranty like new.
USE TECHNOLOGY TO SHOP AROUND
BEFORE you buy anything, go online to see if another shop has a better deal, or there’s a discount voucher you can add to the mix.
If you have time, leave the item in the digital shopping bag for a couple of days, and the retailer may send you a special offer.
This is a canny trick that often works a treat.
If you are planning to buy from Amazon, look the item up on Camelcamelcamel, which tracks prices of Amazon items, to help you know if you really are getting a good deal. You can also sign up for alerts when the price drops.
STRETCH CHRISTMAS
IF all else fails, agree to see groups of people in the New Year. Then you can buy their presents in the January sales or consider a cheeky re-gift or two.