Western Morning News

12 top tips to make sure Santa Claus is the only one in the red this Christmas

TRICIA PHILLIPS looks at ways to keep the cost of this year’s festivitie­s under control

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THE cost-of-living crisis means we’re all having to be careful with our cash, and as we head towards Christmas, many will be worrying about how to get through without a financial hangover in the new year.

With just weeks to go until the big day, now is the time to get your festive spending plan in place, so you can get through without getting into debt with a budget you can afford.

1.Set budgets... and stick to them

It’s easy to get caught up in all the hype as shops pull out the stops to try to make you spend big. Ignore the Black Friday and Cyber Monday promotions as they are simply ways of trying to get you to part with your hard-earned cash for things you don’t really need.

Buying something just because it’s discounted isn’t the best strategy. The trick is to work out a budget of how much you can afford to spend and keep within that limit.

2.Don’t be swayed by TV adverts

Big stores are pushing the “musthave” expensive computer games consoles and suggesting store cards charging eye-watering interest rates. This sales pressure just puts unnecessar­y pressure on cashstrapp­ed families.

Be realistic and if you can’t afford it, don’t buy on the basis that you don’t want to lose face or must keep up with the Joneses. You won’t thank yourself when your January and February wages are wiped out trying to pay off Christmas excesses.

3.Use reward points

When was the last time you cashed in your Nectar points, Tesco Clubcard rewards or Boots Advantage points?

Check the balances now and see how much you’ve got – it may be more than you thought. Now’s a great time to put all rewards to good use.

4.Agree a spending limit

Keep costs down by agreeing a limit on the amount you’ll spend on each other with friends and family – or perhaps agreeing to only buy for children.

Many of your friends and family will be in the same financial position as you this year, and will welcome the suggestion.

5.Plan food shopping ahead of time

One tried and tested money-saving tip is to try to cut back on food shopping from now to the big day. By buying the essentials, not only will it save you cash, but it’ll help you make space for those festive goodies.

Have a good rummage through your kitchen cupboards and freezer and make use of what you have. You

could find more than a couple of meals tucked away, especially buried at the bottom of the freezer.

Plan meals for the week ahead, based on what you have that needs using up – then just shop for the things you really need. A list helps.

Rather than wait until the week before Christmas to do the big food shop, start popping one or two extra bits in your trolley each week in the run-up. Spreading the cost will make it less of a squeeze on your December pay packet.

6.Christmas e-cards

These are better for your wallet and charities can benefit too. Because one festive element that gets more expensive every year is sending Christmas cards.

A first-class stamp for a standard size card or letter now costs 95p and it’s 68p for second class. That may not sound a lot for a oneoff, but if you’ve got 50 cards to send, it could cost as much as the entire Christmas lunch.

Sending e-cards is an easy and much cheaper alternativ­e. You can still personalis­e each one, plus you can donate to your favourite charity at the same time. The likes of Macmillan Cancer Support, Marie Curie, and many other worthwhile charities offer Christmas e-cards.

7.Leave your credit card at home

Taking cash to buy your Christmas goodies is a great way to prevent overspendi­ng, but you may need to choose where you shop as some places have become cashless.

You may need to use contactles­s for some transactio­ns too – if this is the case, keep a tab on your spending as contactles­s is so easy to do, and you can easily forget how much you’ve forked out. Also, some transactio­ns can take a few days to leave your bank account.

If you empty your purse or wallet of credit cards before you go, you won’t be tempted to spend a little extra by reaching for your plastic.

8.Team up with friends for deals

Some of the bigger stores offer three gifts for the price of two. This sounds like a great idea but often you can only find, say, two things you need and end up with a third duff item, which cancels out the saving.

If you team up with a friend, you are more likely to find three things you want between you – that way you both get a deal.

9.Personal gifts mean more

Rather than spending money on presents, it can be a much more personal gift, and more useful, to design and send your own practical vouchers.

You could offer to give up your time to baby-sit, provide a taxi service, clean the car or even walk the dog. It will cost you nothing but your time and creativene­ss.

10.If you use plastic, do it wisely

If you need to use a credit card to help you manage your Christmas shopping, pick a card with a 0% interest promotion on purchases.

You won’t have to pay back any extra on top of the amount you spend – but try not to get carried away, as every pound you borrow now is a pound you need to find in the new year.

To put it in perspectiv­e, if you sign up for a big brand store card at 29.9% APR and spend £600 on it, you’ll be paying £15 per month in interest charges.

11.Don’t forget second-hand

It has become cool, and much better for the environmen­t and your pocket, to go vintage. You can find some excellent quality and value pressies for all ages in second-hand shops. And younger children won’t notice if toys don’t come with all the useless packaging.

12.Start saving for 2023

It might sound a bit crazy talking about Christmas 2023 already, but it’s a wise time to set up your savings plan so you’re ready for next December.

Imagine if you’d started saving last January and put some cash aside every week or month. You’d be feeling pretty happy and a whole lot less stressed right now.

It doesn’t have to be a lot – a few pounds here and there in a money box you can’t easily get into, putting it into the bank when you reach a tenner.

Or setting up a small monthly standing order to a separate account from January would help build a pot to ease the festive spend next year.

Sending an e-card is an easier and cheaper alternativ­e

 ?? ?? Spread your food bill for festive feasts by picking up a few extras each week in the run-up to Christmas
Spread your food bill for festive feasts by picking up a few extras each week in the run-up to Christmas
 ?? ?? ELF WARNING: Resist the urge to raid your savings for a festive blow out
ELF WARNING: Resist the urge to raid your savings for a festive blow out

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