Are you financially prepared for Christmas? Six tips to put some cash in your pocket

Taking these tips on board now will help prevent you from spending too much this Christmas

It's time to start making a plan for saving for Christmas.

With less than 100 days left until Christmas, how prepared are you financially for Christmas? No matter how ready we think we are for the holiday season, December always seems to arrive at lightning speed. Every year, we spend hundreds or maybe even thousands of euros at Christmas with some of us shopping at the very last minute which leads to impulsive spending and often resorting to using expensive credit cards or dipping into our savings.

Here is my list of ways to save money not only between now and the festive season but all year round. Hopefully, taking these on board will help prevent you from hurting your overall finances at this expensive time of the year.

Make a list and set spending goals

 A little bit of advance planning can go a long way when preparing for the Christmas season. Start by making a list of everyone you buy gifts for and assign a price range to each one. You need to set strict spending goals. This “goal” amount can be the amount you want to spend overall, or per person. Also do not forget to include all the other associated Christmas costs on the list like groceries, socialising, travel, decorations etc. Knowing the final figure required will help you better prepare. Then putting a small amount aside each month ideally all year round will make your Christmas much more manageable financially.

Look out for Sales and Deals throughout the Year 

While it is true that Black Friday is when retailers have some great deals, many offer great deals throughout the whole year. In some instances, you may be able to find something cheaper during an earlier sale than during Black Friday. I save a fortune by buying most of my Christmas gifts which are usually household or electronic items in the summer sales at hugely discounted prices and then I hide them away until I need them a few months later.

Cut Spending

 During the pandemic, this step was very easy for us but with hospitality now re-opened, give yourself a strict budget for socialising between now and Christmas and possibly only indulge at the weekends. I had developed an indulgent habit of getting a nice takeaway mid-week during the pandemic (as well as at the weekend!) and I have now kicked this to the kerb. I also unwrapped the coffee machine I received as a birthday present last year and am now also saving €4 per day as I have discovered that my home-produced cappuccino is tastier than anything I can get out and about! These two minor changes to my spending alone are saving me over €300 per month already (not to mention thousands of nasty calories!). I am now redirecting this money to my Christmas Socialising Fund instead. Just some food for thought!

Set Up a Christmas Savings Account

 A great solution is to set up a Christmas savings account at the start of the year. This needs to be separate from your regular savings bank account. Most credit unions offer good options. You can set up a direct debit amount so that a certain set amount is deducted directly from your pay-check. This will be a huge help as you won’t even see the money in your current account and lower the temptation of spending this money on random unnecessary purchases before Christmas.

Get a Credit Card with 0% Interest

If you do need to use a credit card to cover some Christmas spending, apply for one with an 0% APR. Using this allows you a period to pay off your bigger holiday purchases without incurring the huge interest fees. Some companies now offer a 12 month no interest period on credit card balance transfers and 6 months for credit card purchases. You must pay the minimum monthly amount during the introductory period and terms and conditions apply.

Sell Unwanted Items Online 

How many of us can admit that we have items in our wardrobes with the tags still on or just worn once? A great way to make extra money in your spare time is to sell it online. There are plenty of platforms out there that will connect you with potential buyers of your unwanted items and there isn’t anything that people won’t buy. Facebook Marketplace and Depop are two of my personal favourites. Remember one person’s junk is another’s treasure!

For many people, the festive season can add a lot of unwanted financial stress. It is worth remembering that Christmas should be all about spending quality time with the people who matter most and not about crazy lavish spending on extravagant gifts that will be long forgotten about come the New Year!