*How to stay on budget during the festive season post does contain affiliate links.

For so many of us, Christmas can be one of the most expensive times of the year, which is why I wanted to create this post on how to stay on budget during the festive season. It can be so easy to be swayed into spending more from the things around us, as the allure of the festive season often leads to impulsive purchases.

Whether that is the magical Christmas adverts that tug at our heartstrings, the pretty displays in shops that entice us to buy gifts we hadn’t planned for, or even social media influencers showcasing extravagant Christmas setups that make us feel inadequate without the same level of festivity. Therefore, it’s essential to be mindful of our financial limits while still capturing the joy and warmth of the season, ensuring that we enjoy the festivities without the burden of overspending.

I’ve lost count of the amount of times I’ve seen what someone else is doing for Christmas on social media, and thought, I need to do that too. The elaborately adorned trees, the perfect gift ideas, and the enticing Christmas recipes can often make it seem like everyone else is having a more festive experience. But the truth is, I don’t actually need to replicate those visions to feel the joy of the season.

For the last few years, I’ve made a promise to myself that I won’t get into debt over Christmas. This resolution has not only alleviated the stress that often comes with financial strain during the festive period, but it has also allowed me to focus on what truly matters: spending quality time with loved ones and creating meaningful memories.

Don’t get me wrong, I still use my credit card for online purchases, particularly for convenience and safety during the busy festive season. However, I do so with a mindful approach, using it only as an added safety net, and as soon as the items have arrived, I pay it off, ensuring that my festive spirit remains intact without the burden of financial anxiety hanging over my head.

Over the last few years, Christmas has definitely become more hyped up with the help of social media. You see all these amazing decorations, extravagant food spreads, and beautifully wrapped presents, which can create a feeling of pressure to compete and keep up with the seemingly perfect Christmas celebrations.

The truth is, you don’t need to let this pressure dictate your festivities. Now more than ever, with the cost of living crisis affecting so many, we need to concentrate on what we are doing individually and not be so focused on what others are doing.

Instead of feeling the need to match the posts we see online, we can find joy in simplicity, creativity, and thoughtful gestures that require less financial strain. I hope that the tips I’m about to mention will help you work out how to stay on budget during the festive season while still creating cherished memories with loved ones. Embracing this mindset can lead to a more fulfilling festive experience.

Plan ahead

With just over two weeks until Christmas, you might think it is too late to plan ahead. However, it’s never too late to ensure that you have a merry and stress-free Christmas.

The first thing you need to do is work out exactly how much money you have as a total for Christmas. This budget should encompass all aspects of the festive season, including gifts for loved ones, delicious food, drinks, and memorable meals out with friends and family.

Additionally, don’t overlook the expenses for wrapping paper and cards, as well as the decorations that will transform your home into a winter wonderland. And let’s not forget those little extras that we all end up treating ourselves to, such as festive treats and spontaneous outings, which can add to the joy of the season but can also contribute to the overall budget if not planned for properly. By taking the time to outline these expenses, you can enjoy the festive season without breaking the bank or feeling overwhelmed.

The main thing is you need to be realistic about what you can afford. Christmas is what you make it, and it can be a beautiful time of year even without extravagant spending. It doesn’t have to look picture perfect or resemble the idealised images often portrayed in adverts. It’s about spending time with those you love, creating lasting memories, exchanging a little gift perhaps, and indulging in the warmth of togetherness during this festive break.

Focus on sharing laughter around the dinner table, enjoying homemade treats, and engaging in meaningful conversations that strengthen your bonds. Allow the spirit of giving to guide your actions, whether it’s through thoughtful gestures, acts of kindness, or simply being present for one another. After all, the true essence of Christmas lies not in material possessions, but in the love and joy we share with family and friends.

Name your price

Sticking with planning ahead, once you know how much you can realistically afford, you need to split that overall budget down into categories like I’ve mentioned above. This approach not only helps in maintaining a clear vision of your financial limits but also allows you to allocate funds more strategically. For instance, if you’re hosting over Christmas, you might decide that you want that to have, say, 40% of your budget to make sure you have enough food and drink for your guests.

Additionally, consider setting aside another portion for decorations and entertainment to create a festive atmosphere that your guests will remember. By breaking down your budget into these categories, you can ensure that every aspect of your gathering is well-planned and enjoyable, ultimately leading to a successful event where everyone feels comfortable and catered for.

Maybe you have enough decorations, wrapping paper, and cards at home already that you can use so that you don’t need to budget for these. This not only saves you some money but also allows you to be creative with what you already possess, turning your home into a festive haven without any added expense.

Those little treats, such as the tubs of chocolates you like to eat whilst watching a film, might account for another 10% of your budget, and indulging in these delicious snacks can enhance your festive experience, making film nights even more enjoyable.

This even applies to anything else you want to spend money on, like entertainment. If you’re planning on using Spinni or other online entertainment that requires money, for example, set yourself a limit for how much you can spend on it.

If you’re lucky, your employer might pay for your work’s Christmas do, so your December nights out might equate to another 10% of your budget, giving you the opportunity to celebrate with colleagues and foster a sense of camaraderie during the season. That could then leave you with 40% of your budget to use on gifts, enabling you to splurge a little on thoughtful presents for family and friends, ensuring that everyone has a memorable Christmas while you stick to your financial plan.

Split into sub-categories

Once you have your overall budget split into sections, you can then think about the sub-categories that will help you manage your finances more effectively. This might sound like a lot of hard work, but if you really want to stick to a budget and achieve your financial goals, you will find a way to manage it successfully.

When you think about your budget for hosting, consider factors such as how many times you are having guests, the duration of their stay, and how many people are coming. Additionally, reflect on any special occasions or events that may require extra expenses.

Try not to over-buy where possible, although I know this is easier said than done, as it can be tempting to prepare for every possible scenario. Creating a detailed list of necessities versus luxuries can help you prioritise and make more informed purchasing decisions, ultimately leading to a more streamlined and enjoyable hosting experience.

When it comes to the gifts, work out exactly who you need to buy for and again, be realistic. You don’t need to feel guilty about buying your neighbours you hardly ever speak to a gift; a simple card will be more than enough to show your goodwill during the season.

If the Christmas rush is overwhelming, remember that just expressing your good wishes through a note can carry significant meaning. Additionally, talking to friends and family can also help because they might be struggling too, and discussing your experiences can foster a sense of camaraderie and support during this busy time.

Maybe you could decide that you won’t exchange gifts this year, opting instead to plan something meaningful together in the new year, such as a delightful dinner or a fun outing, which could create lasting memories beyond the festive season. Or even just buy for the kids, as focusing on their joy can add a special touch to the holidays without the pressure of extravagant spending. Emphasizing shared experiences rather than material gifts often leads to a more fulfilling celebration.

Once you have your list of gift receivers, you can then split down your remaining budget accordingly to ensure that you don’t overspend. Top tip – I always like to include an unknown gift receiver within my budget for those unexpected occasions.

This could be a colleague you may not know very well or a friend who might surprise you with a gift. I’ll typically buy a box of biscuits or chocolates, just in case I forget someone or get invited round to someone’s house at the last minute. This thoughtful gesture not only shows appreciation but also helps maintain relationships.

This means that I can make use of discounts when I see them, rather than running to the corner shop that will probably be charging double the price, which can often lead to an unnecessary drain on your finances. By planning ahead and keeping a little extra in my budget, I can enjoy the festive season without the stress of last-minute shopping.

Declutter your home

Now hear me out, I don’t mean the whole house in a matter of a couple of weeks. However, we are all guilty of having those things around the house that we never use.

Maybe you’ve got some kids’ toys or board games that are just collecting dust, forgotten in the corners of our living rooms or tucked away in cupboards. Or perhaps there’s some old tech sitting idle, gathering dust like ancient relics of a bygone era that you could probably sell for a decent amount.

If you’re like me, you’ve probably got a few gift sets hanging around that you’ve never even opened too, left to languish alongside forgotten birthday candles and half-used gift wrap. It might be time to reclaim that space, clear the clutter, and even make some extra cash while you’re at it, all while creating a more organised and harmonious living environment.

So have a look around your home and pick out the things that you could either sell to bump up your overall budget or re-gift to save on your gifts budget. Take your time to examine various rooms, as hidden treasures often lie in less frequented spaces. Items you no longer use—such as books, clothing, gadgets, or decorative pieces—could hold significant value for others.

Consider hosting a small garage sale, or using online platforms to reach a wider audience. Additionally, think about personal gifts you might have received that could bring joy to someone else. By decluttering your space, not only do you create a more organised environment, but you also contribute to your financial goals while sharing joy with others through thoughtful re-gifting.

Cashback sites, Loyalty cards/ apps & Vouchers

Before you hit the shops, whether online or in-store, it’s always worth doing your research to ensure you’re getting the best deals available. Cashback sites, in particular, are a fantastic way of getting some money back if you are buying online, and they couldn’t be more simple to use.

By signing up for these platforms, you can browse a wide range of retailers and find exclusive offers that are not available elsewhere. I’ve managed to save so much money this year by utilising TopCashBack, allowing me to indulge in a few extra treats while staying within my budget. Plus, the satisfaction of knowing I’m making my purchases work harder for me makes the shopping experience even more rewarding.

Similarly, check out your loyalty cards and apps because often in the lead up to Christmas, they have special deals and vouchers that can significantly enhance your shopping experience.

Retailers can be crafty with this because quite often, to make use of the offer, you have to load them onto your account via their app, which may require a little extra time and effort.

By taking a few moments to explore these promotional offers, you can uncover substantial savings that are otherwise overlooked. So many people miss out on this when they do their Christmas shopping, potentially leaving money on the table that could be used for gifts, festive treats, or even enjoying a special Christmas meal with loved ones.

Embracing these loyalty benefits not only makes your shopping more economical but also adds an element of excitement as you discover various ways to make the most of your festive budget.

As a side note, if you have a M&S sparks or LIDL Plus account, they are both doing daily offers on their apps so it’s worth checking them out if you haven’t already.

Delivery Passes

If you are ordering online, make use of delivery passes, as they can significantly enhance your shopping experience. These passes often last either six months or a year and can save you a great deal of money if you are a regular user.

In today’s fast-paced world, where convenience is key, paying for delivery on every single order quickly adds up. You are more than likely going to be charged for delivery anyway, and quite often, these passes are available for just a couple of pound more, making them a sound investment.

Moreover, many retailers offer additional perks for pass holders, such as exclusive discounts and early access to sales, which can be a huge plus. Trust me, your future self will thank you for it, especially when you see things you’d like to purchase in the January sales, where having a delivery pass could make the difference between splurging or missing out on great deals.

Embrace the convenience and savings that come with delivery passes, and watch how they elevate your online shopping adventures.

Do money envelops work?

In my opinion, yes, money envelopes do work effectively for managing your budget.

Before you hit the shops, take out the cash you have allotted in your budget, minus anything you plan on shopping online for, so that you have a clear picture of what you can spend.

Split these funds into different envelopes designated for your various sub-categories, such as groceries, clothing, entertainment, or dining out, ensuring that each envelope corresponds to a specific area of your spending.

It’s crucial not to use your card during this process, as relying solely on cash helps you become more mindful of your expenditures. This way, you can physically see your budget going down with each purchase, allowing you to maintain a clear sense of how much you have left.

By visually tracking your spending in this manner, you may find that you’re able to stick to your budget more faithfully, avoid the impulse to overspend, and cultivate better financial habits over time.

Gifts don’t have to be expensive

When it comes to sticking to a budget for Christmas, it’s important to remember that gifts don’t have to be the most extravagant or expensive; in fact, some of the most meaningful presents come from the heart rather than a hefty price tag. As cliché as it sounds, it really is the thought that matters, and there are countless ways to express love and appreciation without overspending.

If your gift budget is small, have a look around your local charity shops and on Facebook Marketplace, as these places can offer delightful surprises. You might not realise it, but they have a lot of things that are still brand new in the box that you can pick up for a fraction of the cost, allowing you to find unique and special items that your loved ones will cherish.

Additionally, consider adding a personal touch to your gifts, such as a handwritten note or a small handmade item, which often holds more sentimental value than something purchased at a high price, making the festive season even more special and memorable.

Another great gift idea to remember is that memories make wonderful gifts, as they carry a deeper emotional significance than material items. But something as simple as a photo in a frame of a day out you both had, perhaps during a summer picnic in the park or a weekend adventure exploring a new city, will be so much more appreciated than another Dove gift set.

You might also consider including a handwritten note that shares your favourite memories from that day, making it a heartfelt and personal gesture that can evoke joy and nostalgia. After all, tangible reminders of shared experiences can strengthen bonds and offer warmth, turning an ordinary moment into a cherished keepsake that can be admired for years to come.

Final Thoughts

I hope this post has given you some insight into how to stay on budget during the festive season. Over the years, I have developed a few strategies that have proven to be effective, allowing me to enjoy the celebrations without breaking the bank. I have been able to stick to a budget for the last few years, and I have to say, it has definitely taken a lot of the stress away.

By planning ahead and prioritising my spending, I can indulge in meaningful gifts and experiences without overspending. My mental health going into the new year has been much better too without having a debt hanging over me, and I genuinely feel a sense of accomplishment knowing that I approached Christmas with a mindful financial outlook.

Each year, I find myself more relaxed and able to appreciate the festive spirit, focusing on the joy of the season rather than the anxiety that often comes with financial strain.

As I mentioned at the start, it is never too late to plan for your Christmas. At the same time, my number one tip is it’s never too early either. Make use of the January sales to pick up bits that will last until next Christmas, as these moments often provide the best bargains.

I managed to buy some lovely decorations last year, priced at just 25p each, which made my Christmas décor not only beautiful but also budget-friendly. Gifts are another good option to pick up in the sales, enabling you to find unique items that might not be available closer to the festive season.

In addition to this, where possible, start putting some money aside each payday, even if it’s only a fiver. Simple sacrifices like brewing your coffee at home instead of buying it can quickly add to your savings. It will soon add up, and by next December, you will have a little bit extra to play with, allowing you to enjoy the festivities without the last-minute financial stress.

Planning ahead not only enhances your Christmas experience but also spreads out the cost over the year, making it much more manageable.

Let me know in the comments if you have any other tips that I haven’t mentioned for how to stay on budget during the festive season.