13 November 2017
Investment Services
Christmas is just around the corner but it’s never too late to prepare and get yourself back on track for a financially stress-free Christmas. Here are our top five tips:
1. Spend only what you have saved
According to research in 2016, more than a quarter of families in England and Wales borrowed money to see them through the festive period 2. Avoid this by having a look at your bank balance and work out how much cash you have to spend already. Add this to any money you have saved for the purpose during the year and after you have worked this out, you can calculate your budget for the festive season.
2. Don’t pay with a credit card but if you must, choose 0%
Christmas becomes more expensive once you start using a credit card. It could take you many more Christmases to wipe the debt and therefore, to reiterate the above, it’s much better to budget. However, if you insist on using a credit card it’s best to get a 0% spending card. But make sure you wipe the repayments well before the next Christmas and most definitely when the 0% period ends, as they can jump up to 18.9% representative APR.
3. Don’t get carried away with shopping online
In 2016, Black Friday resulted in a 12% rise in online spending in the UK and this year analysts predict that we will spend £7 billion over the Black Friday Week 3. The tempt of online shopping is understandably great. Sometimes you can find the best bargains in the comfort of your own home, avoiding the high street stampede. However, one of the main dangers is that it doesn’t feel like that you are spending cash. But your shopping will feel less ‘virtual’ when you see the list of debits on your bank statement. However, to keep within budget while shopping online, print out receipts as you go along.
4. Don’t forget the extras
Although presents are a big part of Christmas, don’t forget the other extras such as party clothes, festive decorations and other celebratory parties which should also factor into your budget. You can spread your budget into different items once you have calculated the total cost.
5. Plan your shop
Make a list of who you want to spend your budget on, how much you are going to spend and what you want to buy them. Otherwise, you could be wandering around a shop tempted to buy unnecessary offers. Make your plan and stick to it!
Sources
1 https://www.moneyadviceservice.org.uk/en/corporate/surviving-january–a-challenge-for-millions
3 http://bit.ly/2gMB6CE
