Christmas is just around the corner, and as we go into December, we wanted to share some advice with you, so you can shop wisely this holiday season and avoid having a financial ‘hangover’ in January.

Plan ahead and only spend what you can afford

To keep organised and on budget, always plan ahead for your holiday shopping. Make a list of everyone you need or want to buy for, double-check it, then set a budget for each person – and stick to it! Budgeting will be at the forefront of people's minds amid the cost-of-living crisis and soaring bills, as Brits explore ways to make their money go further.

Planning your expenses can help to determine whether you can afford to spend money on particular items, while still having enough money to meet your financial obligations. Making the extra effort to get ahead of your finances such as buying gifts in the sale for Christmas 2023 - the sales can be a good time to get next year’s Christmas cards, wrapping paper and gifts at less than this year’s prices!

Giving your loved one’s gifts is a big part of Christmas, but you shouldn’t be risking going into debt or financial stress. Keep in mind that Christmas is much more than just gift-giving, and friends and family will be appreciative of any gift, regardless of its cost

Start early – take advantage of sales!

There’ll almost always be a sale going on, whether it be online or in person. When looking for gifts, never be afraid to explore the bargain racks – you never know what you might find.

Taking the time to find some discount codes or websites that offer even just 10% off your first purchase can save a huge amount of money on your overall present bill.

Some more options that you could find useful would be:

• Make an early Christmas to plan ahead of what you need to buy -–this also gives you more time to find the best deals
• Student discounts - during the first few months of the academic year, student discount apps provide extra deals in the run up to Christmas to allow for more people to get the best types of discounts. 
• Blue light card – one of the benefits of working for the civil service or military, this card offers discounts on hundreds of different brands that can be useful for anyone you’re buying gifts for.
• Buy your tree early - while it is often considered bad luck to put the tree up early, there is no harm in getting a great deal in advance. Search for Christmas trees early before they either go out of stock or double in price due to high demand during the lead up to December.

Consider using a credit card – responsibly!

It may seem contradictory but using a credit card can help you to ‘buy now, pay later’ – but it’s important to only spend what you can afford.

When you pay off your credit card in full each month, it can help to improve your credit score. However, it can have a detrimental effect if you don’t pay it back on time – so spend carefully. Other options can be cashback sites. For example, a lot of banks offer cash back if you spend money at certain places or specific stores, so it may be good to check if your bank offers any cash back options.

 

 Find festive alternatives

It can be easy to spend more money around the holidays as a ‘reward’, but in reality, the few additional pounds tacked on to each purchase are what can lead to financial issues in January.

There are so many alternatives for activities at Christmas time, such as watching a Christmas film at home instead of going to the cinema, having craft nights in instead of buying elaborate decorations and making your favourite treats at home rather than going out to eat. A lot of these options are cheap or free, so can help you save a bit of extra money around this festive period.

For more information on managing your finances at Christmas or in the new year, book an appointment with us.

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Disclaimer: The purpose of this blog is to provide generic information and should not be interpreted as a personal recommendation or advice.