Spend Less at Christmas
Tips on How to Budget for Christmas and Save on Christmas Gifts
Oct 23, 2008
Many people fall into the same trap each year – overspending on presents, going overboard with luxury gift-wrap and buying far too much Christmas food, only to have a rude awakening when the credit card bill arrives in January.
Christmas may be a time for giving and receiving, but not to excess. The financial downturn is affecting everyone this year, so now is the perfect time to start some sensible Christmas planning.
Plan a Christmas Budget and Stick To It
The most important factor is to decide on a figure you can realistically afford, taking into account any money you have put aside, and any surplus income that you can afford in the run up to Christmas. Break the total amount down into budgets for gifts, food, and miscellaneous.
Spend Less on Christmas Gifts
- Make a list of people you normally give presents to, and only tick those you really need to buy a present for.
- Allocate a budget for each person and stick to it.
- Discuss gift giving with your friends. You might be able to mutually agree not to give a gift this year, or only buy something small.
- Set a family challenge, where everyone is only allowed to give presents that cost under £5. Aspire to find the most inventive gift for the smallest price tag.
- Opt for Secret Santa. That way, each person only has to buy one present for his or her allocated family member.
- Make your own gifts. If you enjoy crafts, art or cookery, put your talents to good use and give personal, handmade Christmas gifts that will be treasured.
- Extend your Christmas craft to cards and wrapping. Make your own Christmas cards, make wrapping paper out of magazine and material montages, and cut up last year’s Christmas cards to make gift tags.
Cheap Christmas Food and Bargain Christmas Decorations
- Shop around for the best deals on Christmas food, and only buy what is needed. Everyone is usually too full up after dinner to want much tea, so there is no need to overstock on the buffet.
- Homemade baking not only tastes better, but costs less too. Pull out recipe ideas from the Sunday supplements or look on the web, to avoid buying an expensive recipe book.
- Try a Christmas buffet rather than a full Christmas dinner, or ask your guests to each bring along something to supplement the occasion, such as crackers, wine or pudding.
- A lot of money is spent on alcohol at Christmas. Try serving guests a festive glass of mulled wine – you can even stretch out servings with apple juice.
- Make your own homemade decorations, or pick up beautiful vintage bargains at car boot sales or in charity shops.
- Save money on a tree by decorating one in the garden with lights instead.
Spend Less this Christmas and Beat the Christmas Credit Crunch
Most importantly, keep away from Christmas credit. The true spirit of Christmas is not about who buys the best presents or who receives the most. Avoid using the credit card unless you know you can afford to pay it off in full.
Make a New Year’s Resolution to Save Money
Lastly, if you are expecting this Christmas to be a struggle, use it as an incentive to start saving in the New Year. By putting money away each month, you will have enough to see you through any cash flow emergencies, and have a Christmas fund to treat family and friends to a little bit more next year.
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