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Why planning for Christmas early could help you financially

Written byKoyo Loans
First published6th October 2022
  • Saving & budgeting 
  • Less reliance on credit cards 
  • Cheaper gifts 
  • Easily plan other projects
  • Start planning for Christmas today 

For families throughout the UK, the Christmas holidays are typically the most expensive time of the year. We indulge in gifts, food, drink, trips, and nights out, which can all take a toll on our finances if we don’t plan for them in advance. To ensure you can enjoy the Christmas festivities this year, we explain why it makes financial sense to plan for the holidays ahead of time. 

Saving & budgeting 

The main reason why it makes sense to plan for Christmas early is to help you put together a budget. Research shows that the average British person spends £1,108 during the festive season, which is a lot of money to forego if you don’t plan for it in advance. 

So, in the months leading up to Christmas, it’s a good idea to put together a savings plan and budget to ensure you can afford your increased expenditure around the Christmas period. There are several ways to budget for Christmas, but transferring a little extra each month into your savings account is a good place to start. 

Less reliance on credit cards 

Credit card spending goes through the roof around Christmas time. Whether it’s an expensive gift for your partner, a work night out, or an impromptu trip to a European destination, it’s so tempting to overindulge at Christmas and put the expenses on a credit card. Given that the average APR on a credit card in the UK is around 25%, you will end up paying considerably more for your Christmas indulgences if you don’t plan for your spending in advance. 

Cheaper gifts 

Due to your hectic work schedule and social life, it can be all too easy to leave your Christmas spending until the last minute. Festive price rises make everything more expensive during the holiday period, from food and drink to gifts, wrapping, and other Christmas essentials. When you give yourself a few months to prepare, you can pick up stocking fillers during sales periods and even arrange some of your festive food and drink options well in advance without paying premium prices. Ultimately, planning your Christmas shopping in advance will undoubtedly save you money.

Easily plan other projects

The burdensome cost of Christmas causes many of us to put other projects on hold in the lead-up to and aftermath of the festive period. The reasoning is that we need to hoard every available penny for the festive season, and everything else can wait until Spring comes around. 

But if you plan several months in advance, you don’t need to put every other aspect of your life on hold. You can press ahead with your new car purchase or home extension project as planned, and when Christmas comes around, you don’t need to worry about where your money will come from.

Start planning for Christmas today 

With the festive season just around the corner, now is the ideal time to start planning for your festivities. Begin with a budget and consider how much you can save before the holiday season arrives. By doing this, you can spend the cash that you have saved without having to worry about interest payments and credit card bills in the New Year and can continue with the other aspects of your life without feeling the financial burden. 

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