It is that time of year again. It always seems to come round quicker and quicker each year. And while most of us love what Xmas offers, for those with little money to spare, it can be a nightmare. So we take a further look at budgeting for Christmas. You can have your cake AND eat it.
Start With A Plan
I prefer to use a piece of paper and a (Christmassy) pen, but if you prefer, you can use a technical spreadsheet or notes app. Make a list of everything you’ll need to spend extra money on this holiday season. Once you know all the costs involved, who you need to buy presents for and when you have social commitments, you can start to budget and make decisions.
Budgeting For Christmas – Presents
The major cost for many. Who do you need to buy gifts for and who do you desire to buy gifts for this holiday season? Is there anyone else on your list, aunts and uncles, cousins, do you really need to gift that bubble bath again? Why not have the discussion about possibly ending the gifting? I remember totaling up my gifts as a kid and thinking, “Wow, I have ten gifts!” and thinking it was a LOT of presents. My kids will never have a pile of 30 gifts that they rip through in 15 minutes and have no idea who gave them what. I don’t want children to become accustomed to receiving such treatment at Christmas or on their birthdays.
Let’s be honest, especially when considering children, too many presents are received. Many are barely looked at, let alone used. Be ruthless, and efficient, and narrow down who you gift. Me and my best friend agreed years ago to stop gifting and we have not regretted it.
Budgeting For Christmas – Make Own Gifts
An option if you have creative hands is to spend time on gifts rather than money. Be creative. The other year, i made terrariums for the family. I ordered empty glass jars, got the soil, plants, some very cheap accessories off Wish and make a lovely gift for their shelves.
Food
There is always seven tonnes of turkey and other stuff left over once the main Xmas meal is consumed. Why not just buy what you need for the day itself? Try not to go over the top this time around? If you are hosting, ask for others to bring something with them, be it a dessert or bottle of wine. And if possible use any loyalty cards balances to put toward food costs, reducing what you have to spend even further.
Social Commitments
This has been a huge hit for me in 2021, after 18 months in the wilderness. So if you are on the edge, then be firm with your friends and family. Do not just agree to everything, such as bars where every drink costs £10. Be honest and say you cannot spend endless amounts of cash and look for compromises. And if necessary, cancel the odd engagement.
And if you are going out for a big night, have a cheaper drink at home before you go out, to lower the cost.
