5 Tips On Creating a Successful Christmas Budget

Christmas can be a very expensive time of year. It’s an understandable worry, therefore, when lots of people fret about the state of their finances. 

This is why a Christmas budget is an essential item to have, especially when you have a lot of things to buy, from presents to the pigs in blankets. 

But what if you’ve already tried one and it didn’t work? Well, luckily, we at Cuttings have a few tips for you to help you worry less about spending this Christmas.

Whether you’re buying for family members or for Secret Santa, here are our top five tips for maintaining a successful Christmas budget. 

Make a List

The first thing you must do is to write up a list of everything you need. It sounds obvious, a little bit dull, but you’ll be surprised how often people rely on their memory to get what they need.

This is a flawed way of sticking to your budget as even the best of us forgets things from time to time. At Christmas, it’s even worse when you have so much else to be thinking about as well!

By writing things down, not only do you alleviate the stress of having to remember what you need, you can use it to find less expensive alternatives for the items you plan to get.

You can even write where best to get them and for what prices. If you’re super-organised, you could even draw up a spreadsheet to compare!

But even if you scrawl a list of Christmas items on a post-it note, you’re more likely to stay on-budget than if you were to go off your own memory. 

Set a Spending Limit

Setting a spending limit can be enormously beneficial for a number of reasons, ranging from fairness presents-wise to being able to save money on food. 

Say you want to spend a maximum of fifteen pounds on friends and family. By staying well within that budget, you can ensure that you never go overboard. 

You don’t even have to spend fifteen pounds; you can spend ten and your friend will never know. If this makes you feel a bit guilty, just think how much money you’ve saved for the turkey. 

Your spending limit doesn’t have to be the same for everyone (or everything). If you need to spend a bit more getting the Christmas dinner things, it might be more realistic to set a higher spending limit for that. 

The highest amount you’ll spend will probably be on gifts, however, so we suggest putting aside as much as you can for this. 

Sometimes, the best way to stick to a spending limit is to withdraw the exact amount in cash. That way you have a physical barrier against overspending. Credit cards are definitely best avoided. 

If you’re unsure what spending limit to set, start out with an overall budget figure and work backwards from there. 

Keep an Eye Out For Sales

Easier said than done, but keeping your eyes peeled for any good deals will do wonders for your Christmas budget. 

Getting two for one on any clothes, food or decorations should be relatively easy too, seeing as shops need to sell their Christmas stock as quickly as possible.

That being said, don’t get too sucked in. Don’t buy things just because they’re on sale. That would defeat the whole purpose of sticking to a budget.

This can be more difficult with online shopping, seeing that there are countless apps and plug-ins determined to find you a good deal that makes it all too easy to get carried away. 

Just keep an eye out for sales on the high street that benefit you and actually save you money while also providing the thing that you need. 

Vouchers can be a great way to moderate this! If you have some handy vouchers lying around, now is the time to use them. 

Only Get What You need

While the “festive cheer” can be inviting, it can be a little bit of a trap. Be sure to stick to what you need to get.

Remember, it’s the season for giving, not buying. If you’re getting something without any real thought behind it, you probably don’t need it. After all, it is the thought that counts. 

It’s here you need to be careful of sales promotions too. While it may seem like a good idea to get 2 for 1 on selected fragrances, stop and think for a moment.

Are you only getting that extra bottle because it’s on the deal? If the answer is yes, then you probably should put it back and look for a better deal elsewhere. 

This is where your list will also come in handy. It helps you stick to your priorities and inform you what needs to be bought rather what you can do without. 

Track Your Spending

While it may seem tedious, it’s vital you track your spending every step of the way throughout your Christmas shopping.

How else are you supposed to keep an eye on how much is going out and how much you’ve got left to spend? 

Keep hold of receipts especially, as this can be the best reminder of how much you’re spending. If collecting all that paper is too much, get everything on your debit card so you can track how much went on purchases through an online bank statement. 

But we don’t recommend this. Your best way of keeping track is by taking out the amount needed for each item from an ATM and only using cash. 

So, buy gifts for family members by all means, but make sure you keep a track of how much money went into it regardless. 

Get a Short Loan at Cuttings

Whether you need Christmas cards or a lot of Christmas presents, we may be able to help by providing a short term loan at Cuttings the Pawnbroker.

As well as financial advice, we can help you prepare best for the big day with all the cash you need. The Christmas period need not be so stressful. 

See what we lend against by visiting our page!