How to budget for Christmas
Christmas is a time when it can be tempting to overspend and potentially get into debt.
However, by budgeting appropriately and strategically you can manage expectations for friends, family and yourself. Managing your money well can also help to reduce stress for you and for others. And that’s before you even look at ways to save money!
Once you start spending money on Christmas, it can be easy to get caught up in the festive spirit and lose track of expenditure! You can fall into debt or get yourself further into debt. By not prioritising, you can find yourself without money to buy what you really want, whether that is something like a holiday or more Christmas items.
@thecomplainingcow Don’t go into that this Christmas #BNPL #Debt #CostofChristmas #ChristmasDebt #MoneyTipsAndTricks
As your favourite consumer expert I bring you 12 budgeting tips
- Before spending any money on Christmas, work out your budget. Write down your income and outgoings. Then break down a reasonable percentage of what you have left that you can spend on Christmas.
- Cap the percentage within your means, so you are not tempted to overspend and go over the total you set for yourself.
- Organise your Christmas expenditure into categories, such as food, presents, travel, decorations and festivities, etc. Set a budget and stick to it. Don’t be swayed by so-called “bargains”. This will help prevent impulse buying.
- Make a wish list of everything you’d like to buy. Then, using your budget, rank everything in order of importance. This will stop you buying “bargains” that are the least important until you get to that part of the list.
- Make notes on your budget to help you keep track and see where you are saving. For example you might write “bought x from y and got 20% discount”, “moved £x or % of budget from one category to another because…” It will depend on how much detail you want to go into. Using detailed budgets will also ensure that you don’t forget anything!
- Using a detailed breakdown might also be useful if friends and family guests are contributing to meals, as it will show exactly what you have spent and how to spread the cost fairly across guests.
- Prioritise people on your present list, too. For example, family and close friends may be at the top and co-workers at the bottom. This reduces the risk of you going over budget with the less important recipients, which would reduce the amount to spend on those more important to you.
It should mean that you think more carefully about presents with the most impact for the more important people, too!
Once you have bought the most important presents, you can adjust the remaining present budget if you need to, allowing you to splurge a little extra on a particular item.
Allocating this way reduces the risk of you feeling guilty about how much you might spend on some compared with others.
- You might want to prioritise the present budget in order of importance. So, for example, 50% on high, 30% on mid and 20% on low. The more you divide your planned budget initially, the more you will be able to be flexible and shift amounts around as you buy bargains or want to spend more elsewhere.
- On your present list, focus first on the more expensive and high priority presents. This will ensure you get the most important gifts first, reducing the risk of them going out of stock or going up in price. And if there is a need to cut back you will be cutting back on smaller and less important presents.
- If money is tight, plan a Christmas based on what you can afford now, rather than clinging to any former Christmas traditions that you might now not be able to fund.
- If it looks like you might go into debt after you plan your budget, look for more savings. Christmas is about spending quality time with loved ones, not about how much money you spend! If you go into debt to pay for Christmas, think how much more difficult the following year will be, including next Christmas.
- If you see that you are under budget in one category and over budget in another, then simply adjust the figures so that you can still buy what you need in an area where you have reached the limit. But do ensure that the capped overall total remains the same!
Planning and taking control of your Christmas spending doesn’t necessarily mean cutting back. It means you choose where to put your money, so you get the most enjoyment and the least stress in return.
Or put even more simply “Go into the New Year without going into debt!”
More saving money on Christmas posts
How to save money on Christmas 456 Ways to Save Money on Christmas Throughout the Year
Seek help if you think you will fall into debt
If you’re having difficulty paying your energy bills, it is important to keep communicating with your supplier. There may be access to hardship funds and grants from various organisations, including from your energy supplier. You may also be able to get 60 days’ space from creditors to focus on getting debt advice and setting up a debt repayment solution.
You can also get debt advice from Citizens Advice, StepChange and National Debtline.
Visit the website of Turn2Us, who provide information and advice on what assistance is available, including charities that can help you to pay your bills.
Sara Williams from DebtCamel talks to me about the help you can get if you think you will fall into debt or are in debt: Sara Williams talks debt – The Complaining Cow Consumer Show.
Help with complaining
And of course if there is anything wrong with your purchases you might need the books!
For more advice, tips, information and template letters covering holidays and more: GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!
Want to get better at complaining? See 101 Habits of an Effective Complainer
Save yourself time and effort finding the laws and wording a letter of complaint. Purchase and download a template, fill in your details and get that redress
