Yes, Christmas is looming but don’t worry, there’s still plenty of time to prepare yourself for the financial onslaught that comes with it. We’ve asked personal finance expert Iona Bain for her top tips on how to make sure you have a savvy, yet enjoyable, Christmas!
Christmas on Female First
Set your Christmas budget
Draw up your Christmas budget now. Look at what you spent on Christmas last year as a starting point. Was it enough? Did you end up spending too much in certain areas? How much do you think you’ll need for transport, food and attending Christmas parties? Make your travel arrangements now to save you money and start stocking up on essential food while you can still find it at a competitive price. It’s surprising how much you can freeze in advance and use in delicious leftovers post-Christmas.
Start saving NOW
Compare how much you can currently afford to save for Christmas with how much you’d ideally like. Even if you whittle down Christmas costs – and you definitely can! - you may find there’s still a gap. Make some short-term adjustments to your daily spending now so you can put away more – fewer take-out coffees, more nights in etc. The sooner you get saving for Christmas, the easier it will be. Once you have a realistic total figure in your head, divide it into a weekly or even daily sum that you can put into a savings account.
Make saving easier for yourself
Make saving as easy as possible. Many smartphone-based banks provide no-fuss savings pots, where you can transfer money from your main account in just a few taps. Some also offer a “spare change” tool where you can round-up your purchases and put the extra amount into your savings – for a £1.90 coffee, 10p would go into your Christmas pot. A great way to ensure you put a little aside and often.
Make a present pyramid
The answer to your festive gift conundrums? A present pyramid. At the top of your pyramid should be a tiny number of people who deserve the highest-value presents on account of your closeness. As you go further down the pyramid, more people should receive presents of less value until you get to the foundation, where a lovely card will suffice. The overall value of presents within the pyramid should fit the total amount you can afford to spend. It sounds brutal but nobody needs to know about your pyramid and it’s a brilliant way to make sure you spend your present budget in a focused, proportionate way.
Say “no” more
Christmas is a time of relentless pressures from all directions. Women often feel reluctant to push back but trying to keep everyone happy will take a huge toll on your mental health and finances. Let go of expectations and set some boundaries. Attending every Christmas get-together? Not necessary. Hosting your entire extended family for Christmas dinner? If the cost falls squarely on you, that’s just unfair. Make sure your partner, grown-up kids or flat-mates are contributing their fair share to the Christmas budget. Above all, take the pressure off yourself to try and achieve the perfect Christmas: you’ll be happier and more prosperous for it.
Start car sharing
Having your own car is expensive, but if you join a car sharing club like Zipcar you can use their cars and vans whenever you need them and save some serious money. Zipcar is the UK’s largest car sharing service, with 3,000 vehicles just around the corner if you live in London. Once you join online, it takes just a few taps on the app and you’re driving. And they’re reasonable too: they pay for fuel, insurance and things like congestion charge, and you can get about from £3/hour or 29p/minute, depending on the car. Car sharing is a fantastic way to get home for Christmas too, allowing you to transport all your bags and gifts, comfortably without the stress of a busy train.
Credit cards can help too
A word on credit cards: they aren’t so bad if used correctly. They might help you make up the gap in your savings, but make sure you are only borrowing what you can afford to pay back as soon as possible in the New Year. Don’t stick to minimum repayments and take advantage of any 0% balance transfer or purchase deals available to you on your credit rating. Ultimately, prevention is far better than a cure for your Christmas financial woes. Start your Christmas savings fund as soon as you take down the tree in January. It sounds crazy but it’s far better to build up a fund slowly with small amounts over the year than borrow and over-save frantically in late Autumn.
Advice provided by Iona Bain in association with Zipcar UK
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