Four Ways To Keep Your Finances In Check For Christmas

*This is a collaborative post on ways to keep your finances in check for Christmas

I think about Christmas pretty much all year round – yes I’m one of those people! And I’ve been in Christmas mode for around the last month. But with three paydays left for most of us before the big day, it’s time to get your finances in order and preparations started. Life may feel more normal in terms of being able to come into contact with people, but it’s far from ‘normal’. 

Create a Budget

The Cost of Living crisis is spiralling out of control and we’re all feeling the pinch. It’s important to really think about what you can afford and want to spend on Christmas, so you don’t go into debt or end up putting yourself in to a tough position.

I’ve done a few posts about budgeting for Christmas before. But this year feels a bit different. Most of us have less disposable income than we usually have, so knowing how to budget is more crucial than ever.

Think about the areas you may want to spend money such as food, entertainment, and presents. But be realistic and don’t feel like you have to compare against how much you spent last year. Once you know the areas you need money for you can plan how much you want and need to budget for each area.

If you want to cut back, then suggest a secret Santa between a few of you or suggest a group of you go out rather than buy presents. By having the conversation, you’ll all have the same expectations. And others are likely to be relieved to limit their budget too.

Get Saving

Once you have a budget, open up a savings account for yourself (if you don’t have one) and get saving. 

In an ideal world, you’ll have been saving a little bit each week or month throughout the year to make it an easier habit to get into. But it’s never too late. Think about how much you’ve budgeted and how many paydays you have between now and Christmas. Or perhaps you’re planning to side hustle your Christmas money, maybe through overtime or selling unwanted items online.

Having a clear plan should help you feel less overwhelmed.

And straight after Christmas, think about starting to set money aside throughout 2023 to help ease planning next year. We put aside a small amount every single week to cover presents and decorations. It will help keep your finances in check and get you in the habit of regular saving.

Plan Plan Plan

By my very nature, I love a good list, and now is the perfect time to create a Christmas list. Write down everything from presents you have stashed away that you bought in the sales, to ideas you’ve had for people. Make sure you have lists to cover where you’ll be over the festive period, so you don’t overbuy on food. And on the subject of food, get your list going now, so it’s not a mad scramble a week before.

I love using websites where I can create a personal wish list throughout the year to keep links together, where I can also have lists for people. Whenever I see something, I might like or know someone else wants, I find it a great way to keep everything all in one place for a later date.

Keep your finances in check by buying in advance

To spread out the cost of Christmas, think about what you can buy in advance. At this time of the year, I like to sneak a few things in my weekly shop each week that will keep. For example, drinks, or new decorations, frozen food and sweets. By doing it in advance, you can spread the cost but also buy when things go on offer to save money. A lot of supermarkets have opened up their Christmas food booking already so you can pre-order your turkey or fancy desserts.

If you have created your budget and planned, then you can keep an eye on prices, especially when it gets to Black Friday at the end of next month. I love to note down things I want to buy and their links and keep checking on them over the Black Friday week, so I don’t miss out on a discount. 

Do you have any helpful tips on how to budget for Christmas? If so I’d love to hear them!