October 1, 2007
With Christmas around the corner are you feeling that dreaded sensation of being dragged into a financial hell-hole as apposed to a winter wonderland? If so, ‘tis the season to wave goodbye to your financial worries and let this Christmas be a magical one – albeit on a budget.
Gill Wrigley, founder of the new and impartial financial advice website, www.goodbye2debt.co.uk explains:
“Don’t be fooled into thinking that Christmas can’t be done on a budget. Remember to work with your finances instead of against them. Manage your costs as effectively as possible and set yourself a spending limit for all those Christmas necessities. An average of £400 is spent by people on presents alone every Christmas, which explains why a staggering 23 million Brits are predicted to start this New Year in debt. Don’t fall into the trap of being one of them.”
Gill has compiled the following tips to help you keep a close eye on your Christmas cash flow without feeling like a Scrooge:
How to maximise your festive allowance
Manage your money by writing lists – Plan ahead and don’t leave your Christmas shopping until the last minute. Think realistically about how much you can spend, record how much you are spending per gift/person – and stick to it! This way you know exactly how much you are spending.
Ditch the credit card – Paying by cash will help you think twice before making unnecessary purchases. You will also avoid hidden interest charges and steer clear of being stuck with your Christmas debt long after the festive season is over. Store cards can be appealing to shoppers with their tempting introductory discounts. Don’t fall for it – the value of the incentive rarely outweighs the cost of the card and also makes it hard to keep track of your expenditure which could end up costing you more than what you bargained for.
Christmas Savings Clubs - Schemes such as the one by Park Group are now protected, which means your money is safe and will ensure you’re not tempted to dip into your savings before the festive season.
An offer you can’t refuse – Look out for those special incentives and offers such as buy one – get one half price. It’s important to stick to your shopping list and steer clear from ‘bargains’ that you don’t really need. It’s always worthwhile seeing if the offers match up with the items on your list.
A belly on a budget – Food and drink can also be purchased on a budget. Shopping last minute can pay off as prices drop dramatically when supermarkets close for Christmas. However, stick to a spending limit and try not to buy more food then you actually need. Keep an eye out for money off coupons, every bit helps. If you’re going to have guests round for meals don’t refuse their offers for them to bring starters, desserts or drinks.
It’s a wrap – Do your bit for the environment and think twice before purchasing expensive wrapping paper, gift tags and decorations. Try a cost effective alternative by using brown recycled paper rather than traditional wrapping paper. Similarly, create your very own home made decorations, cards, cakes and cookies for presents with step by step craft ideas that can be found online. It’s a cheaper alternative to buying them on the high street and a fun way to get the children involved. Or buy your cards and paper for next year in the sales. And when Christmas items first enter the shops, prices can be lower than after Halloween.
Online delights – Fight off the crowds and do your shopping online. It’s cheaper than on the high street and some retailers offer special discounts if you order via their websites. If you still prefer to go to the shops to purchase your goods, then compare prices of products to make sure you are getting the best deal for your money. There are some fantastic offers that some retailers offer with free home delivery if you spend over a certain amount, so take advantage of it.
Manage expectations - If you have young children explain to them that Santa has a budget for all the other children he has to visit. Shop at discount stores for bargains and little stocking fillers. Ask your friends and family if there is something in particular that they would like, rather than spending more on things they may never use. If you think the present they want will go down in price in the sale ask if its ok to wait until then to buy it, the same applies if you know you’re only going to see someone after Christmas wait until then to buy them something.
Helping the environment by saving your pennies - Ensure that you turn appliances off at the socket and not leave them on standby – including Christmas lights where appropriate.
Gill continues:
“After Christmas, take a look at how much you have spent this year and calculate how much you need to save for next year. It’s a good idea to create a Christmas fund over a 12 month period to spread the cost, leaving your December pay packet to act as an emergency buffer.
Be sensible and carefully plan how much you can spend. Always remember that the most important thing is to take control of your Christmas finances. Be smart with your money to ensure you’re not bringing your financial worries into the New Year.
“On the whole, make sure you stick to your budget plan. It’s not worth the long-term worry of going into the red this Christmas because of impulse excitable buying. Banks can charge unauthorised overdraft charges if you exceed your amount, so it can help to contact your bank to temporarily increase your limit.”
www.goodbye2debt.co.uk is an indispensable portal for consumers to gain free, impartial and professional advice and factual information on a wide range of debt solutions including IVAs, debt management, debt consolidation loans and bankruptcy.
