Winter can be a tough time for your finances, with expensive heating bills, pricey food costs and Christmas presents to contend with.
If money worries are already creeping in ahead of the festive season, now is the time to take action and get control of your spending to avoid landing in debt at the start of the new year.
To prevent falling into a financial black hole, finance experts recommend making a small change to your saving and spending habits right now and put away £30 every week.
If you can stick to this amount of savings each week in the run up to Christmas, you’ll have £210 in time for December 25, giving you a decent budget for any last-minute presents or food shopping – and that’s not even including any interest you’ll get on top if it’s sat in a savings account.
If £30 per week is too much, you could put away a slightly lower amount of £20 each week to make a £140 saving, or £10 per week to save £70.
David Murray, a financial planning expert from abrdn, explains: “Saving little and often each week will ensure that you have a pot ready come December. Weekly savings could feel more manageable than putting bigger amounts aside when you get paid too.”
For those who feel unable to put money aside every week, Murray suggests reviewing your normal monthly spending to see where you might be able to make a few cuts. He adds: “Even if it’s just for a few weeks in the run-up, it could make a big difference.”
Households are also urged to discuss Christmas finances with family and friends to help understand what budgets you are working towards.
He says: “Depending on the size of your Christmas party – whether that be friends, family, neighbours, colleagues – the list of people to get gifts for can feel endless.
“Having early conversations with friends and family about budgets, and putting spending boundaries in place, can ease any anxiety about gift affordability and ensure expectations are matched.
“It might feel daunting, but it is completely normal, and you might find that your loved ones are grateful to be open about Christmas costs.”
And if you’re looking for ways to add a bit more cash to your Christmas spending pot, Murray suggests selling some unwanted items on eBay.
eBay UK recently scrapped its fees for private sellers across its categories, except motor listings, and estimates that UK homes are sitting on £9 billion worth of unused items.
According to the website, nearly a quarter (24%) of UK homes are sitting on items worth more than £500, with common items including clothes, CDs and tech.
