Western Daily Press (Saturday)
COST-OF-LIVING CRISIS, SAYS HARVEY JONES
TAKING A LEAF OUT OF SCROOGE’S BOOK NOW COULD HELP SAVE CHRISTMAS FROM THE
IT doesn’t feel a lot like Christmas right now, but it’s coming sooner than you think.
This year it might be worth starting your festive savings earlier than usual, otherwise it may not come round at all. It’s hard to think about paying for toys and turkey when you’ve got the next energy bill to worry about, but the following expert tips might help.
Make those pay cheques stretch
If you’re employed, you have three monthly pay cheques before Christmas – September, October and November.
That’s not many, so you have to make them stretch, says Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.
“You can either buy presents and stock up over the next few months, or set aside some cash to spend nearer the time,” she says.
Taking a bit of time to sit down and draw up a budget can also help.
Sarah says: “Unless you know how much you can spare, and work out in advance the best way to spend it, you’ll struggle to keep a lid on costs.”
Remember that if you go over budget in one area, you’ll need to cut back elsewhere, so don’t get carried away.
“Before you buy anything, check if another retailer is offering a better deal,” advises Sarah.
Similarly, if there’s something specific you want, use a price tracker to keep an eye on changing prices.
“Buy when the price drops to a level you’re happy with,” she says.
Black Friday, Cyber Monday and the pre-Christmas sales can offer some bargains, but don’t get carried away.
“Track the prices of anything you plan to buy in the sales so you know whether the discount is anything to write home about,” Sarah adds.
Time to rethink Christmas
If you’re struggling to stretch your budget, cut the number of presents you buy, she says, advising: “Talk to friends or family and agree not to buy for one another this year. You can just buy for the kids, or run a secret Santa, so you buy for one person in each group.”
Remember to start these conversations early, before loved ones start their Christmas shopping.
Sales of premium ranges soar at Christmas as we treat ourselves to posh ham and top-of-the-range cheese.
“If you’re determined to treat yourself, try the cheaper premium ranges of the budget supermarkets,” Sarah suggests.
Brean Horne, personal finance expert at comparison site NerdWallet, points out that many retailers offer deals throughout the year, so it pays to buy gifts early.
“Most online stores offer discounts if you sign up for their newsletter,” he says. “You may also find digital voucher codes and coupons by searching for them online.”
Avoid wasting cash
Saving more for Christmas means spending less now, which may be particularly tough in October when the weather cools and energy bills soar, says Becky O’Connor, head of pensions and savings at Interactive Investor.
“So don’t put off saving today because it certainly isn’t going to get easier tomorrow,” she says.
Cast your mind back to last Christmas, suggests Becky. “Were there things you could have done without, like fancy wrapping paper or Cointreau that no one drank?
“If you wasted money last year, don’t repeat the mistake.”
Encourage your kids to think differently about Christmas. “Ask them to write lists of games they would like to play with you, or places they’d like to visit over the holidays, so the focus isn’t all about presents,” she says.
Get a glittering deal on savings
With Christmas so close, you will need to keep your spending money in an easy-access account so that you can get at it over the next few months, Becky says.
“Digital banks like Starling and Monzo have excellent savings pots functionality, allowing you to earn a bit of interest on your cash,” she adds. Some savings apps have helpful features – for example, Plum rounds up spending to the nearest pound and saves the change. Moneybox also has a round-up savings feature, while Chip analyses your spending and suggests amounts to save.
Saving little and often snowballs
Becky suggests creating some “accountability” by sharing your savings plans with your partner or a friend. “Get them to check how you are doing with your savings’ goal weekly,” she says.
Becky continues: “If you do make specific, identifiable savings, such as spending £20 less on the weekly shop, divert this straight into your Christmas savings pot.
“Keep track of your Christmas spending by keeping receipts in one place. It’s the best way to avoid over-spending.”
Ring a few seasonal changes
Plenty of people are in the same boat right now as recession looms, so you won’t be struggling alone, says Laura Suter, head of personal finance at AJ Bell.
“Christmas isn’t all about money,” she says. “There are lots of ways to make it a fun time without breaking the bank.”
She suggests using this time to generate some cash: “We’ve all got things lying around the house that we don’t use any more, so you could sell those items online at eBay, Facebook Marketplace or your local car boot sale to generate a Christmas present fund.”
Laura adds: “Anyone with children will probably have lots of toys and books they don’t use any more, so you could sell those to buy them new presents. Or use your evenings to turn a hobby into a money-generating business – such as selling crafts – or do additional work in your spare time.”
Another good idea is to pledge to have a no-debt Christmas.
“Too many people end up putting Christmas spending on their credit cards or going into their overdrafts to pay for presents, meals, nights out or new outfits,” she says.
Your children may understand today’s financial worries better than you think. “They may be happy with smaller gifts while friends could be happier with a night in rather than a pricey night out in town,” says Laura.
Talk to friends or family and agree not to buy for one another this year. Finance analyst
Sarah Coles