WITH less than 100 days until Christmas, there’s no time like the present to start getting organised.
The cost of living crisis doesn’t have to take all of the joy out of the festive season, but it will be important to plan, budget and track your spending to avoid a financial hangover.
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Jonathan Merry, CEO of MoneyTransfers.com and financial expert, has shared the simple ways that you can reduce Christmas costs.
Establish a budget and stick to it!
First of all, figure out how much you can afford.
The worst thing you can do is begin your Christmas shopping and realise that you can’t actually afford to pay it all off.
Before you get overwhelmed by endless wishlists and Christmas dinner requests, it’s worth reminding yourself that Christmas is only one day of the year, and it’s not worth getting into financial difficulties over it.
To calculate a budget, there are many online tools that you can use. Once a budget has been set, it’s important to keep an eye on your spending to avoid blowing your budget. It’s a great way to do this is to create a bank of receipts.
Look out for sales
Don’t wait until the last minute to shop for Christmas gifts. This is another reason we spend too much. If you are able to, it’s always better (and a lot less stressful) to plan ahead and set a deadline to get your shopping done.
Keep an eye out on Black Friday and Cyber Tuesday for great deals. You can also make the most of these sales by making a list of all the Christmas gifts that you want to purchase and then purchasing them once the sale is live.
Always remember that a bargain only means you bought it in the first instance. If it isn’t, it’s an impulse purchase.
Shop smart when buying food
With the soaring prices of food, many households will be anxious about this year’s supermarket shopping for Christmas.
One of the most effective ways to reduce the cost of your food shop is to prepare the meals based on how many guests you are feeding — and only buy what you need, instead of adding more and more extravagant food items onto the list simply because it’s “Christmas”.
Once you know how many people you are hosting, figure out exactly what you’ll be making and how much of it to buy for the number of guests. You’ll be able to cut down on food waste and costs.
You don’t have to pay more for premium food or drink than the cheaper brands. Most of the time, you’re simply judging the packaging rather than the taste of the food. Instead, you’re much better off buying what’s right for you and your household, not the shop.
Suggest Secret Santa
Secret Santa doesn’t have to be a work thing only. It’s a great way to save time and money, rather than buying gifts for all family members.
Many families will be thankful to have quality time together, despite the fact that Christmas plans have been thwarted by the pandemic. Although presents are fun, memories made with loved ones is the most important aspect of this festive season.
When buying gift cards, be careful
Gift cards may seem easy, but they can also be risky, especially for people who have a hard time shopping for.
For instance, if the retailer goes bust then they usually stop accepting gift cards and there’s not a lot you can do to get your money back. Ever since the pandemic, an increasing number of retailers have gone into administration so it’s not an unlikely scenario either.
Also, gift cards often have an expiry date so you’re relying on the recipient to remember to actually use it. On top of this, gift cards can get lost pretty easily too, so again that’s more money down the drain.
To prevent any of this from happening, handing out cash instead of a gift card is a much safer option and it means the recipient isn’t restricted in any way.
Look at second-hand gifts
There shouldn’t be any shame in shopping for second-hand gifts – just because something is pre-loved, that doesn’t make it any less valuable to the recipient.
Shopping second-hand is the best way to shop. Not only will it help you save money but it also benefits the environment. Vinted found that only 1 out of 6 people will be buying Christmas gifts exclusively from preloved sites this year.
Don’t be tempted by ‘buy now, pay later’ schemes
These offers are so tempting when it comes to reducing the upfront costs but it’s worth questioning whether you can actually afford it in the first place, if you are considering this kind of payment plan.
Additionally, there are many other risks. ‘buy now, pay later’Failing to make your payments on time can lead to a decrease in credit score. This is why Christmas shopping is so expensive!
Consider delivery costs
Online shopping can be a time saver, but delivery costs add up quickly, especially if you depend on next-day delivery.
If possible, shop ahead and choose any free options. This will reduce costs. Consider standard delivery options and free collection in store.
Cashback sites are a great way to get presents
While you shouldn’t let cashback determine where you shop, it’s always worth checking to see if it’s available.
Register for free, then click through to the cashback site to make a purchase. These sites are paid to drive traffic, and then they give some money back to you. Being savvy and making small decisions like this can shave off the pounds here and there, so it’s worth bearing in mind.
Make sure to plan your travel in advance
You should plan your mode of transportation if you’re going to another household during the holiday season.
It’s important to book your tickets early to avoid high ticket prices and long journey times.
You could consider sharing lifts with family members or friends to split the fuel costs, given the rising cost of fuel.
Before you send money overseas, think twice
Transferring money to family members in another country may be a better option than sending them a lot of money overseas.
There may be additional fees for sending or receiving money. Always check with the bank to confirm. Remember that fees for money transfer services can differ depending on how much you send.
Exchange rates can fluctuate quickly too, so make sure the information you’re shown on websites is up-to-date. It’s important you put in the exact amount you’re looking to send as this may affect the rate you’re offered.