Avoiding a financial hangover in the New Year

Christmas can quickly become a time of financial dread and whilst we all want to spoil our loved ones, it’s important to spend within our means – especially in today’s financial climate. Careful planning and budgeting doesn’t mean your Christmas will be any less magical, you might find yourself enjoying it a little more knowing that when January arrives you won’t have to worry about recovering your financial position.

Take a look at our top 5 tips to achieve a fun-filled, affordable Christmas:

1.      Plan ahead.

Make a list of all the people you need to buy for and set budgets for each person. Ask them what they would like instead of buying things that will go to waste. We would also recommend drawing up a budget for other things you will spend money on over Christmas, such as food, drink, and socialising.

2.      Don’t leave your shopping to the last minute

Last-minute buys often result in spending more. You can save money by investing some of your time and effort to find more thoughtful yet affordable gifts. You’ll probably find that your family and friends appreciate this a lot more than a random last-minute purchase.

3.      Limit who you buy for

We know this may sound harsh for some but see if you can lower the number of people you tend to buy for. Generally, adults already have everything they need / want, and you end up spending for the sake of it. For large groups of friends or colleagues, why not suggest doing secret Santa instead of buying for each person?

If you really can’t limit who you buy for, try agreeing with friends and family a smaller budget for one another.

4.      Shop around, look for deals, and keep your receipts

Retailers and independent businesses had a tough time during the pandemic having to shut shop - some would say they’re still recovering. Yet many are offering deals and discounts to incentive people to spend, so make sure you compare before you buy. On top of this, be sure to research promotional codes and cashback offers to save even more. 

Whilst you may have followed tip no.1, asking friends and family what they would like for Christmas this year, don’t forget to keep the receipts (just in case!)

5.      Spend quality time, not money

Some of the most special Christmas memories are made from spending quality time with your loved ones. Winter wonderland, pantomimes, experiences like these are part of Christmas, but don’t forget you can make special memories with your children in other ways. For example, snuggling up with a hot chocolate and watching a movie, driving around looking at decorated houses, doing the famous ‘elf on the shelf’, or even reading a letter from Santa – all of which don’t cost you anything.

We understand Christmas comes at a cost, however by budgeting and planning, you will find you are able to enjoy the festive season guilt-free and without dreading that new year financial hangover.

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