With the festive season well and truly underway, it can be easy to get caught up in the excitement of it all and spend more than you’re comfortable with on food, gifts, and clothes. But while many resort to loans and credit cards to help cover the cost, this can be a slippery slope to serious financial problems and, in some cases, debt.
Thankfully, there are various things you can do to enjoy the most wonderful time of the year without blowing your budget. From spreading the cost of every purchase to staying on top of your bills, here are our top tips for staying in control of your spending and starting the year financially strong:
Set a budget early on
It’s a piece of advice we’ve all heard time and time again, but that’s because it works. Everyone wants to spoil their friends and family on the big day, but you can still let them know how much they mean to you without spending a fortune. By setting a realistic budget and sticking to it, you can ease some of the financial pressure and avoid hefty bills come the new year.
But while budgeting can help you spend within your means, it will only work if you put the work in. December is full of temptations, but you’ll thank yourself for staying in control when the new year rolls around and you’re free from financial regret.
Be mindful of offers and discounts
From Black Friday to Boxing Day, it can be easy to think you’re bagging a bargain when you pick up an item for 50% off. But if you’re buying things you don’t need or you wouldn’t usually buy, you could be wasting money, not saving it.
Use price trackers in the run up to sales and keep an eye out for scammers and fraudsters – especially if you’re shopping online. Even if a website looks legitimate, a quick online search should tell you everything you need to know. Remember, if a deal sounds too good to be true, it probably is.
Give yourself a financial cushion
If you’re one of the many people having to make their wages last longer this month, a financial cushion can help you budget for any unexpected expenses and stop you from counting the pennies come payday. Whether it’s an extra person you missed off your gift list or those travel tickets you forgot to book months ago, having some spare cash set aside can be a lifeline.
The cold weather also makes home and car repairs more likely and with some contractors charging up to £100 in call-out fees alone, your budget could be blown before you’ve even looked at your gift list. The thought of building an emergency fund can be daunting, but it can be the difference between you being able to cover the cost and needing to borrow money to get through the month.
Don’t neglect other expenses
Christmas is an exciting time, but it’s important to remember that it’s just one day and no day is worth getting into debt over. By spending more than you can afford, you could end up eating into your budget for housing and bills and being left with no choice but to take out a loan to meet your basic needs.
When you’re budgeting for the festive period, don’t forget to calculate how much you’ll need for both fixed and variable expenses, such as rent, utilities, transport and groceries. The money left over (your disposable income) can then be spent however you wish and you can relax knowing you won’t be left short when your rent is due.
No matter your situation, it’s crucial you ask for help if you need it. The longer you ignore the problem, the worse the situation will become. Whether you’ve borrowed money you can’t afford to pay back or could just benefit from some free financial advice, get in touch today.
