Managing a budget at Christmas – Part 1

The festive period is among us, and all we can think about is spending some quality time with family (after a not-so-pleasant Christmas last year!). We’d all love to throw a huge family get-together; pulling out all the stops to make this festive season one to remember. But, one thing you cannot forget about is your budget!

We all dream of an unlimited budget to spoil our friends and family. But, once the holiday season comes to an end, your credit card bills come through the post to spoil the party.

How much is the average person spending on Christmas?

Study shows that the average UK household spends an extra £740 each December (which is 29% more than a typical month)! Now, you might be thinking if I spend all my money on cheap gifts, I will save a lot of money, right? No, you’re most likely spending a whole load of money on a variety of different “cheap” gifts, which add up to a large sum of money.

What you don’t know…

Some credit card companies will try to entice you to spend over the festive period. They create special marketing campaigns around the holidays and offer you great deals like 0% interest offers. But you must read the t&cs before you take on any extra credit, as the reduced interest rates are for a short time.

This year is different! Here at IE Hub, we will be giving you the best top tips to keep you away from that dreaded world of debt.

Plan before you spend

Creating a budget plan is the perfect way to start Christmas on a budget. To create a budget, you’ll need a budgeting tool, right? Well, look no further than here at IE Hub. We have a free online budgeting tool that allows you to fill in all your bills (priority and non-priority) on an income and expenditure form. After completion, you’ll be able to see how much disposable income you will have to spend on Christmas! And if you’d like, you can share your I&E with your financial advisors to get further help.

Don’t make the mistake of maxing out your credit cards- make a list of everything you are buying and whom you’re buying for.

Open a designated Christmas savings account

After mapping out all your savings using the budgeting tool, it would be a shame if you went off the rails and spent all your savings on unnecessary wants. To make sure this doesn’t happen you can always open a savings account for the purpose to save money for Christmas. With online banking, it’s never been easier to transfer funds from one account to another or you could consider automating your deposits.

Take advantage of discounts! 

Writing down a list of gifts you want to buy and searching for them online would be the best way to go about shopping for gifts. It’s proven that retailers are more likely to offer discounts online with discount codes becoming more popular. Having a browse online for products and finding them at a cheaper retailer is always a buzz that words can’t describe! Also signing up to the retailer’s mailing list could unlock a discount code so be aware of those promotions!

In the lead-up to the holiday season comes black Friday and cyber-Monday, which takes place at the backend of November. Huge discounts are NOW in place in various stores like toy shops or technology retailers. It is best to take advantage of these days and get as much shopping done as you can at a discounted rate – but don’t go over your budget!

If you found this article helpful, stay tuned as we will be issuing part 2 tomorrow! Tomorrow’s tips will cover how to claim money back from your Christmas shopping, and how to make the most out of loyalty cards!