Christmas is a quarter away, but now is the time to start planning around your Christmas budget so you do not have to rush to online lenders to fund your festive expenses. According to a Halifax report, the UK spends a whopping £20 billion on Christmas, which amounts to £800 per household on average, to cover the cost of food, presents and decoration.
If figures were investigated further, it might be concluded that the spending adds up so quickly due to debt taken on. Most people are frequently dependent on doorstep loans in Bristol to meet their Christmas expenses, including parties and presents.
Funding a small gap in your Christmas budget is OK as long as you do not fall behind on payment, but then you take out a personal loan to have a vacation. This is where you end up adding up a lot of debt.
Financial experts often suggest that you avoid starting the New Year with debt. Unfortunately, this advisory is not followed by a majority of people. It is pretty easy to get carried away in the festive spirit and spend more than your pocket allows. Do not forget that you will be lumbered with unbearable debt for a couple of months, and this will have serious repercussions on your budget.
Here are the ways you can celebrate a debt-free Christmas:
1. Set a spending limit
You should have the numbers in your mind. From presents to decorations, you know where your money will be splashed out. Estimating how much your budget allows beforehand will help a lot to prevent yourself from overspending.
Make a list of all expenses and then set an estimated number you can afford to spend on each category. Look over your income and monthly expenses to check if there is room to cover additional expenses. Make sure you use these funds for Christmas expenses.
Check your savings to see whether you have enough money to cover all Christmas expenses. You can get the estimated budget based on the average figures of previous Christmas expenses. By this time, you must have saved enough money, but if not, check if there is a possibility to chip away at your regular expenses.
It is vital to have a solid plan, so you manage to set aside money as soon as possible. Try to earn extra money to speed up savings. Grab a part-time job or a side gig based on your skills. Apart from that, find ways to make extra money like selling old pieces of furniture, handicrafts and so on.
2. Open a savings account and implement an account transfer
One of the best ways to keep cash out of your reach is to open a savings account. Although you will not get much interest on your deposit, it is a better idea as you will not accidentally dip into it for takeaways. Make sure you do not contribute even if you have already saved a sufficient amount. It is likely that the actual cost goes beyond the estimated cost.
If you still have to achieve your goal, make sure to implement an account transfer. Link your pay account to your savings account and opt for a direct debit system. Set a limit so that every month, the same amount of money is pulled. You can increase or decrease the limit at any time.
3. Shorten your Christmas list
Even though you cut down on your Christmas expenses, you will see your budget seems to be blowing up. As cash loans in Middlesbrough are easily available, you will be tempted to fill the gap with them. This is where the debt quickly adds up, and your budget worsens.
You should always try to avoid borrowing money as long as you can. Stretch your money so you can cover almost all expenses. First and foremost, try to shorten the list of your Christmas expenses. For instance, you can trim down the number of guests you want to ask for a party. This will also reduce the number of presents.
If your budget does not allow, you do not need to buy expensive gifts. You can manage with lighter gifts for your family. For children, presents may be mandatory, but you do not need to exchange gifts with adults.
4. Watch out for the best deal
It is not just presents that you have to buy, but you may need to buy a new piece of furniture, a washing machine or a tumble dryer. You do not need to buy these things until Christmas. There are many reports that suggest that retailers hike the prices at least a month before Christmas.
If you actually want to save money, you should try to buy these things even a couple of months before. You are more likely to get the best deal, then. During the festive season, you will see retailers offering 40% discounts, but retailers hike prices outrageously before implementing the discount.
5. Keep an eye on other expenses
While spending on your Christmas expenses, other important and recurring expenses can slip through the cracks. Be careful about your debt payments. They must be the priority. In addition, look out for other expenses such as gym membership and other unnecessary outgoings.
Trim down such expenses to ensure that you do not struggle to pay down Christmas-related expenses. You must establish a balance between all of your expenses.
The final word
In order to celebrate a debt-free Christmas, you should carefully analyse your budget. Based on the previous Christmas expenses figure out the estimated cost and make sure you set aside that much money.
If you are tight on budget, you should trim down your expenses. Chip away at discretionary expenses as well, so your Christmas budget does not fall too short of cash. Loans are an option when you need money, but make sure you do not fall into debt.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
