A Koyo Guide to Affording Christmas
- Create a savings plan
- Consider your finance options
- Buy gifts in advance
- Think about a side hustle
- Final thoughts
The average British family spends £449 on Christmas decorations and food and a further £548 on gifts. This doesn’t cover the work nights out and the various other festivities that accompany this time of the year. In other words, things can get expensive quickly if you’re not financially prepared. So, to ensure you can enjoy the festive period this year, here’s our guide to helping you afford Christmas.
Create a savings plan
Budgeting is an integral part of smart personal finance. We know in advance that Christmas is likely to be one of the most expensive times of the year, so putting together a budget several months beforehand is an important step.
The best time to do this is in late summer or early autumn. You can then add a little extra every month into your savings account, and you will reap the benefits when Christmas comes around.
Consider your finance options
In addition to bolstering your savings, there are other ways to fund Christmas if you’re not able to put enough away in the months leading up to December. Of course, many people elect to put many Christmas activities on a credit card, which can be a savvy move if you have a 0% interest period to benefit from. However, simply putting everything on a credit card to worry about it later will likely cost you in the long run, as interest rates are typically high following the 0% period.
Taking out credit to support the cost of Christmas is not the best idea, however there are options out there. We would encourage you to review your budget, save earlier and look at planning further in advance with your finances related to Christmas, and you can see the financial benefits of planning ahead.
Buy gifts in advance
Gift giving is a big part of Christmas, but it’s also one of the most expensive aspects of this time of the year, as retailers look to profit from consumer expenditure. Therefore, it makes financial sense to buy Christmas gifts throughout the year when sales are on, as opposed to buying everything last minute.
You can pick up stocking fillers throughout the year and keep them in your wardrobe until December comes around. If you stagger your gift-giving throughout the year, you will find that it’s much cheaper, and you also won’t have to splash the cash in the immediate lead-up to the festivities.
Think about a side hustle
The gig economy is thriving in the UK, and there are so many ways for you to make a little extra money on the side, which could contribute to your Christmas expenditure. If you have a skill or a talent that you can monetise, a side hustle is well worth thinking about.
For instance, you could make some money by setting up an eBay store selling unwanted items, offering your services as a freelance writer, or baking cakes and Christmas goodies for your local community. There are so many ways to start a side hustle, but you can check out a site like Fiverr to launch your profile and see if you can start making a little extra money that will contribute to the Christmas coffers.
If you don’t plan things in advance, Christmas can be one of the most stressful times of the year. But with some careful financial planning, it will be just as you had hoped – magical, memorable, and filled with love for your friends and family. We hope these tips help you to plan Christmas with your family without the headache that often comes with spending excess money that you don’t necessarily have. Be sure to check out ‘Koyo Guides’ for further information regarding personal finances.
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