Ok I know what you are thinking. You don’t want to be thinking about Christmas in September. However, with it being one of the most expensive times of the year for so many of us, it’s so important to be prepared. I’ve managed to stick to a budget at Christmas for the last few years, which has taken most of the stress away. In this post, I’m going to share some of the ways you can financially prepare yourself for Christmas that I’ve picked up along the way.

Plan, Plan, Plan

The most important thing you need to do before you embark on your Christmas shopping is to make a plan. This plan needs to be detailed and realistic. You need to know exactly who you are buying for and what the budget is for each person. Within my plan, I also like to include little notes about the things each person likes.

Be realistic

As mentioned above, when it comes to Christmas you have to be realistic. Of course I would love to spend hundreds of pounds on the people I love the most. But in doing so, I’m just going to end up going into the new year stressed with a huge debt hanging over me. With the cost of living rising as it is, it is key that you are realistic about what you can afford, whilst still being able to live.

Don’t fall for Buy Now, Pay Later

Try not to fall for the buy now, pay later deals. You are just pushing that debt further down the line and may also end up paying a lot more for items with added interest. If you can’t afford to buy it outright now, how do you know you will be able to next year? The world is fast changing, especially at the moment, so don’t put yourself in a tricky position.

Spread the cost throughout the year

Ok so it might be a bit late to do that this year. However in January, set aside a certain amount each month that you will save specifically to pay for Christmas. Not only will you not be getting yourself into debt at the end of the year, you will also have that achievement that you have been organised and able to plan ahead. You can always dip into that saving pot if you find something that you will put to one side for a Christmas present.

Cut out unnecessary gifts

Over the years, I’m sure we have all had that one person that you feel you need to buy for even though you begrudge it right? With people’s budgets now tighter than ever, it’s time to cut those gifts out. By all means, write them a nice message in a Christmas card, but don’t feel obliged to buy them a gift. The people in your life that truly care will understand. More than anything, those that really matter will just want to spend time you rather than receive a gift.

Think of alternatives

This falls in around the time you are making your plan. Maybe you have a big family circle or group of friends that soon proves costly on the gift front. Instead, think of alternatives and discuss it with them early on. Maybe you could do a Secret Santa so that everyone gets one gift. If anyone chooses to buy extra, that is up to them. However you won’t feel obliged to return the favour.

If there’s a lot of kids to buy for, maybe just suggest that you only buy for the kids this year. Maybe you and your friends could then plan to go out for a meal, which will cost a lot less than buying everyone gifts.

Cut costs where you can

Sticking with alternatives, look at where you can cut costs in your plan. For example, maybe you could buy a turkey crown instead of a full turkey. This will save you so much money and will also mean you aren’t eating left over turkey well into the new year. If you buy lots of sweet treats for December (I’ve been guilty of this in the past) maybe look at reducing the amount. You can still treat yourself without going overboard. Your waistline will thank you for it in the new year too!

Gift someone your time

To a lot of people, materialistic things don’t matter. They would much rather spend time with you. As I mentioned in this recent post, keeping those friendships alive as an adult takes work. The same goes for family too.

Why not go onto Canva and create a really cute festive “gift voucher”. There are so many options you could choose from. Maybe gift someone a meal at their favourite restaurant or a local afternoon tea for two. It could be anything you fancy that you can then put a date in the diary for later in the year. By doing this, it gives you a bit of breathing space to put some money to one side.

Declutter before you buy

I’ve spoken on this blog so many times about how important decluttering is. By decluttering before you buy, you are able to see if there’s anything you can sell to make some extra cash for Christmas as well as feel better about your home. Not only that, I’m sure you will find a few items that you’ve received and never even opened that can be re-gifted to someone else.

Keep track of your spending

You have set yourself a realistic budget and now it’s time to stick to it. The only way you can do this is to keep track of your spending. Maybe one item cost more than you thought so you will need to make adjustments within your budget. I had to do this last year when one of the three things I wanted to buy someone cost more. Adjusting my budget meant the third item needed to cost less or an alternative found. It didn’t mean I didn’t spend the amount I wanted to, just that I adjusted my plan accordingly.

Look out for freebies

Freebies are often advertised throughout the year, not just at Christmas. Whilst these freebies might look small, you could create a lovely hamper with what you’re able to pick up. You’ll be surprised by just how must you can collect in a short space of time.

Sign up to newsletters

Ok, so I know we all hate getting to much spam through to our inbox but hear me out. When you go on a website, you will often get a pop up message saying that in exchange for signing up to their newsletter, they will give you a percentage off code. Whilst it might seem like a small gesture, if you plan on buying from that website anyway, you might as well save some money. You can always unsubscribe from their newsletter later on.

Buy second hand

In case you didn’t know, September is all about buying second hand. However it’s not limited to just one month of the year. You can get some great second hand items whether in charity shops, at carboot sales, or on websites such as Ebay and Vinted. You might even find something that has never been used for a fraction of what you would have paid in the shops.

Ordering online?

If you are planning on ordering online, look out for delivery passes and collection options. These will often save you so much money throughout the festive period. After all, delivery costs can soon add up and be a really expensive part of your Christmas budget.

Cashback & vouchers

You have no doubt heard so many people talk about using cashback sites and looking for voucher deals over the years. Do you know why? Because they really can save you money. If you can get money back on something you were going to buy anyway, why wouldn’t you? It’s a no brainer.

Sign up to several sites and always check these before you spend. Most companies will only use one site at a time for cashback and vouchers so it’s worth looking at a few before you commit to buy. Just always read the terms & conditions for each deal because there are certain clauses where you can’t use them. Sign up to TopCashBack with this link to get a £10 free bonus.

Don’t get sucked in by offers

It is really important that you don’t just buy something because it is on offer. It’s important you still shop around and look for exactly what you want. After all, an offer is only a good deal if you actually want or need it else it just becomes clutter.

Large stores use Ebay?

Did you know high street shops such as Argos & Curry’s also have an Ebay shop in addition to their own websites? More often than not, you can pick up some really great deals through their Ebay shop for a fraction of the price so it’s always worth checking.

Make the most of saving boost schemes

We all know that most banks offer rewards for saving a certain amount or for switching. But have you looked into supermarket savings rewards. For example, Asda Rewards are currently offering a £5 free bonus when you save £40 or more through their Christmas Saver. Not only is it free money, the bonus is applied by the 24th November and can be used across both Asda & George. So you could spend it on gifts, updating your Christmas decorations or even as part of your Christmas food shop.

Don’t forget your gift receipt

There is nothing worse than receiving something for Christmas, only to find it doesn’t fit or you already have it. Therefore make sure when you are buying the gifts, you ask for a gift receipt where possible. This means the recipient can go into store and change the item for something suitable.

Spending more than £100 in one transaction?

I wanted to leave this one till last because it’s such an important one, especially in the current economic climate. If you are spending more than £100 in one transaction, it’s important that you put it on your credit card.

I know throughout this post I’ve said not to get in debt and it’s the same in this case. You still need to put the money aside to pay it off in full when the bill comes through. However, by using your credit card, you are giving yourself extra financial cover.

What I mean by this is that if the company goes bust, or your order just simply doesn’t turn up, your credit card company will fight your corner and you will get your money back. As long as it’s over the £100 mark. Therefore it is always worth doing to make sure you don’t loose out.

Final Thoughts

I hope you have found this post helpful. I really wanted to share the tips and tricks I’ve picked up over the years. There are so many more things I could say but whittling it down to 20 ways to financially prepare yourself for Christmas I felt was a good number without it being overwhelming. If you have any other tips, please leave them in the comments so that we can help each other in these challenging times.