Brits are being encouraged to act swiftly to ensure they can afford the Christmas they desire. Liz Hunter, director at Money Expert, has offered some of her top tips that Brits can start doing immediately to avoid overspending this festive season.
Even better, some of the strategies you can employ are incredibly straightforward. And many require minimal effort.
Liz has tips for everything from how to buy gifts at a reasonable price and utilising discount codes and vouchers to when to start buying Christmas food.
Start saving nowWhile it might feel too late to start saving in September or October, you can still make a big difference by spreading out expenses over the next three months. Think about how much you'll realistically spend this Christmas, factoring in the cost of food, gifts, events and any other expenses.
Divide this total into three equal parts. Once you receive your pay later this month, set aside one-third of the budget in a savings account.
Repeat this process on your October and November paydays. By following this plan, you can significantly reduce the financial stress of December.
Stock up on Christmas food nowFood prices often increase the closer it gets to Christmas, especially when it comes to festive items. Although it may seem early to stock up on Christmas food, buying now can save you money later.
Fresh produce won't last, but non-perishable items like biscuits, nuts, chocolates and alcohol can be purchased in advance so if you spot good deals, grab them now. Remember to check the 'reduced to clear' shelves every time you shop, too.
Many items, including meat joints and fish, can be frozen which could significantly help to reduce the cost of your December food shopping. By stocking up on what you can now, you'll save money, spread the cost and avoid the hectic Christmas shopping rush.
Sign up for cashback schemesImagine being paid to do your Christmas shopping sounds appealing, doesn't it? Well, with cashback websites and apps, you can earn money back on every festive gift you purchase.
These schemes operate by tracking your online purchases and rewarding you with a percentage of your spending as cashback. For instance, if you buy something for £100 and the provider offers 5% cashback, you'll pocket £5 credit.
Once you've accumulated enough, you can withdraw it as cash, gift cards or vouchers. It's a win-win situation. Save money on your Christmas shopping and keep the savings rolling into the New Year and beyond. The two largest platforms in the UK are Topcashback and Quidco.
Use discount codesUtilising discount codes to stretch your Christmas shopping budget might seem like an obvious tip, but it's frequently overlooked. With a simple online search, you'll be able to find a working discount/promo code for most online retailers, often saving you 5-20% off your purchase but sometimes even more.
The easiest way to maximise the use of discount codes is to install a browser extension, such as Honey or Pouch, which will automatically apply working discount codes to your purchases at checkout. Do you shop on your phone? There are plenty of apps available, too.
Don't wait for Black FridayWhile many anticipate Black Friday to offer the best deals, data indicates its reputation as the cheapest time for Christmas is often overstated. In fact, a study by Which? discovered that only one in 50 Black Friday deals are at their cheapest price on the day of the sales extravaganza.
They also found that just 2% were not available at the same price or cheaper within six months either side of the date. So, don't delay your Christmas shopping.
If you spot a good deal before Black Friday or Cyber Monday, seize it while you can. On the day itself, utilise a price comparison tool like PriceRunner to verify if the sale price is a genuine bargain.
Consider shopping for pre-loved giftsAccording to Oxfam, six in 10 people believe it's more acceptable than ever before to give second-hand gifts to a loved one, due to both the rising cost of living and environmental concerns. With this in mind and three months until Christmas there's ample time to raid your local charity shop and scour eBay, Vinted and Facebook Marketplace for unique second-hand gifts.
From vintage jewellery and rare records to unique homeware and other one-of-a-kind finds, second-hand gifts offer a more thoughtful and sustainable approach to Christmas shopping. Not only do they save you money, but they also help the planet.
Set expectations with friends & familyIf your budget simply doesn't stretch to lavish gifts this Christmas, it's perfectly okay to scale things back. Don't feel guilty about setting boundaries and expectations. Inform your loved ones early on that you're operating on a tighter budget.
Proposing a specific spending limit can assist everyone in adjusting their expectations. For larger groups, a Secret Santa could simplify things and make it more affordable.
Ultimately, don't feel compelled to spend beyond your means. Honesty and transparency will contribute to a more relaxed and enjoyable Christmas for all.
If you need to borrow, do so wiselyResorting to borrowing for Christmas should always be the last option. First, consider reducing expenses or finding additional income before turning to debt.
However, if you're determined to borrow money for Christmas 2024, you need to do so wisely. Be wary of high-interest payday loans or other predatory lenders who intensify their marketing strategies in the lead-up to Christmas.
Instead, consider a 0% credit card, which allows you to borrow interest-free for a set period. Ensure you'll be able to pay off the balance before the interest-free period expires.
Buy now, pay later services can be a viable option if you simply need to spread the cost of a few larger purchases. However, it's crucial to use them responsibly, ensuring you can afford the repayments and meet the deadlines set.
