With the cost of living higher than ever before, buying Christmas presents can easily cost an arm and a leg. But the truth is, it doesn’t have to. Many practical strategies will help you save money when buying gifts for those you care about, without having to compromise on the spirit of the season.
Photo by Karolina Grabowska from Pexels
From Christmas parties and festive celebrations to seasonal sales and Christmas gift boxes, there are countless reasons to spend money during the holiday season. However, with a proper budget in place, realistic expense tracking, and a clever money-saving trick or two, you will feel confident and relaxed as you roll into the new year.
Plan Your Spending
Before you spend a single penny this holiday season, you need to build a realistic budget based on your current financial obligations and planned purchases. On average, people tend to spend roughly 30% more in December than in other months, often leaving them in a difficult financial position in the new year.
Break down your plan for the month, calculating how much money will go towards food, gifts, drinks, leisure, entertainment, delivery, and the usual monthly household costs. You may want to indulge during the holiday season, but it is far better to cut your cloth to fit your budget than to put yourself in a difficult position.
Photo by Anton
Track Your Budget
Once you have created a budget you are comfortable with, it is crucial to keep track of your spending as you shop. This will guarantee that you are aware of your purchasing habits to avoid overspending. Whether you keep track using a notebook, an Excel spreadsheet, or an app on your phone, choose a system that you can easily check to hold yourself accountable.
Alternatively, you can download an app that brings all your bank and credit card accounts together in one place, making it easier to keep track of them. If your bank offers alerts when your balance dips below a specified amount, opt in to this system. It may feel like extra effort to constantly track your spending throughout the holiday season, but once the festivities are over and your January bills start rolling in, you will be grateful that you took the extra time to keep your finances in check.
Shop Smart with Sales
The golden rule of sales is that it’s only a bargain if you intended to buy it anyway. With the influx of tempting deals around Black Friday, Cyber Monday, and into the festive season, it is essential to resist impulse buying.
Additionally, if you are doing your holiday shopping on popular websites, check out websites like camelcamelcamel, which track prices of products over the year to reveal if you are getting a proper bargain or not.
Alternatively, check out cashback sites that help you earn money as you shop by offering you a cashback percentage on every purchase. As with other major sales periods, ensure the item’s price is competitive rather than focusing on the size of the cashback.
Avoid ‘Pay Later’ Offers
As tempting as these schemes may seem in the heat of the moment, try to avoid ‘pay later’ offers unless you have a set plan in place for repaying the loan within the interest-free period. Without this plan, you will be subject to an aggressive interest rate at the end of the period.
Not only will this make your purchase cost far more in the long run, but it could also negatively impact your credit score if you default on any payment.
Home-Cooked Offerings as Gifts
If you are a home chef and enjoy cooking for others, making a selection of tasty holiday treats is a fantastic way to save money on holiday gifts while still giving your loved ones a personal, thoughtful present.
There are many different delicious savory and sweet treats to choose from, including home-baked Christmas cookies, mini Panettone cake, jams and preserves made from seasonal produce, oils infused with herbs and spices, and homemade hot chocolate sets with mini marshmallows and a peppermint candy cane included. Alternatively, you can put together a personalized treat box with a selection of treats tailored to your loved ones’ tastes.
Family Gift & Secret Santa
If you have a lot of people you need to buy gifts for this year, including extended family and friend groups, pick the classic route and suggest Secret Santa to help everyone involved keep costs down this holiday season.
Similarly, you can consider buying ‘family gifts’ – like a hamper or a fun board game – to gift a group rather than buying individual presents. This is a fantastic idea for households who enjoy game night, couples who enjoy pampering themselves in the comfort of their own homes, or foodies who are always excited to try new sweet and savoury treats.
Photo by Heidi Fin
Be Smart About Deliveries
If you are responsible for cooking Christmas dinner this year and plan to have your groceries delivered to your door, be mindful when booking your delivery slot. Supermarket deliveries close to Christmas tend to cost more; bag a cheaper time by placing a few items into your virtual cart well in advance.
As the big day gets closer, these cheaper slots will fill up quickly, often resulting in an expensive delivery fee that is better avoided. As the holiday deals start, you can add special offers and your usual goodies to the cart.
