If it’s already December and you are reading this article you’re probably thinking it definitely IS too late to spread the cost of Christmas! Yet again you have left everything till the last minute and, yet again, you are running short of money.
And we know you’re short of time too. But we want to help. So we’ll make this quick.
We’ll give you some ideas on how to:
The first thing to do is to STOP. Stop panicking, and stop spending. It really is worth taking stock of where you are at, and what you still need to do. You will then be able to get back in control of what’s happening.
First of all make a list of absolutely everything you still possibly need to get and pay for this Christmas. For example, gifts, cards, decorations, food and drink, socialising, family visits etc.
Then estimate the amount of money you could reasonably expect to spend on each item. This gives you a maximum budget for Christmas 2024.
If you have the money for everything you need, that’s great. You can get on with it and not be left with any financial overspend. And for handy hints on how to get your Christmas shopping done quickly, check out our article Heads Up . . . It’s time to start your Christmas shopping!
But if you don’t have enough money for everything you think you need, you have two options:
There is still time for three possible ways to reduce your Christmas spending:
It may be time to reduce the number of gifts you buy, and/or the amount you spend on each. It’s worth checking with other family members if they would agree to an alternative such as just buying gifts for the children or clubbing together for a Secret Santa rather than everyone buying gifts for everyone else.
If you feel it’s too late for this, or it won’t work for another reason, your next option is to set yourself a strict spending limit on each gift. After all, it’s the thought that counts.
Another way to reduce your spending on gifts is to consider alternative sources. Don’t fall into the trap of thinking that you have to buy from the same retailers as you always have done before, or even that you have to buy everything new. There are some lovely second hand gifts available for the taking – for example vintage clothing or jewellery, old books, or antique household items. These can make much better gifts than something mass produced.
Another option is to gift something of yourself. Either a homemade gift or a voucher pledging your time to someone. For example offering to babysit, housesit, cook a meal, clear their garden or paint their kitchen.
Christmas is all about spending time with people we want to be with. But that doesn’t mean it has to cost a small fortune.
If you are hosting Christmas don’t feel you must buy what you think you “should” be eating just because it’s Christmas. The important thing is that you eat things that you enjoy rather than follow any kind of tradition. Also don’t go overboard in terms of the quantity of food you buy. So much food can be wasted at Christmas, which is just like throwing money away. Plan portion sizes carefully so that there is enough, but not mountains of food left over.
And when meeting up with friends, why not get together in homes instead of pubs and restaurants? Gathering in homes for drinks and nibbles, or shared suppers or takeaways can be just as much fun but cost far less money.
There is still time for three possible ways to reduce your Christmas spending:
Even though it’s late in the day, that could work to your advantage in terms of making a bit of extra money. For example, are there any opportunities for overtime or extra shifts in your current place of work? If so, put yourself forward. Another option could be to look for additional temporary work in areas such as retail or hospitality.
But if there don’t seem to be any such opportunities around, how about offering your services locally for practical help in areas such as cleaning, garden clearing, decorating, DIY, odd jobs and admin help.
Many people will be looking for last minute seasonal items either as gifts or for the home. So if you have any such items you no longer need it’s worth trying to sell them, for example on local Facebook Marketplace sites where you can turn items around very quickly. Examples of what might sell are:
Another option to boost your Christmas finances is a small loan. This should only be considered if you are confident that you can meet the repayments. But in many ways a loan is better than putting extra Christmas expenditure onto a credit card. You will know in advance exactly what you have to repay and when, whereas with a credit card your debt can just keep going up and up.
If you are considering a loan to spread the cost of Christmas, Munzee offers loans over 24 months which may be able to help.
Wouldn’t it be nice not to have any of this hassle next year? To be totally prepared for Christmas and have the money set aside to cover everything you need.
The trick is to start the process for next Christmas as soon as this Christmas is over. Which is probably the last thing you want to hear right now, but your future self will thank you!
So take a couple of hours in January, perhaps the same day you take the decorations down, to think ahead to Christmas 2025. Make a list of everything you spent money on this Christmas, and how much you spent. Start with the assumption that you will need the same amount of money next Christmas, but also add on anything that you know might be an extra factor in 2025.
Then look at ways to spread the cost of Christmas. The sooner you start, the easier it should be to achieve. The simplest way is to set aside a sum of money each month towards Christmas. For example research indicates that a typical UK adult spends £600 on Christmas. If this is the case, putting aside £50 each month from January should cover it.
This can be flexible, for example if you are broke in January 2025 because of Christmas 2024, then start putting money aside in February instead. Or if there is a particular month that is expensive for you as a family, skip that month and put a bit extra aside the following month.
The main point is that you need to build up some reserves during the year for Christmas so that all the expense doesn’t hit you at the same time. And if there is never any money to put aside, this means that you need to start looking at other options (such as those we looked at under “Top up your Christmas funds”) because the money won’t magically appear in December.
So the sooner you start planning how to spread the cost of Christmas 2025 the better everything will be at this time next year!
We hope that this article has given you some inspiration and useful tips for spreading the cost of Christmas. And remember that if at any stage you need some extra funds, Munzee offers loans over 24 months which may be able to help
Check back here soon for more lifestyle and financial tips from Munzee Loans.
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