how to save money at christmas

How to Save Money at Christmas: 9 Tips to Spend Less This Year

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Christmas is a time for joy and spending time with family and friends.

However, it can also be a time of stress when it comes to finances.

How can you enjoy the holiday season without breaking the bank?

Here are 9 tips to help you save money on Christmas this year!

How to Save Money at Christmas

Christmas is often hailed as the most wonderful time of the year. But for many people, it’s also the most expensive time of the year. Between buying presents, decorating the house and travelling to visit family, the holidays can quickly put a dent in your budget. However, there are a few ways to save money during the Christmas season.

Here are some tips to help you save money this Christmas:

1. Create a Budget

Decide on a Christmas budget and stick to it. Determine how much you can realistically afford to spend on presents, food, travel and other expenses. Once you have a budget in mind, it will be easier to stick to it.

Setting a Christmas budget doesn’t have to be a daunting task. The first step is to take a overall look at your finances and figure out how much you can realistically afford to spend. Christmas 2022 is looking set to be an expensive year so taking the time now to really think through what you can afford to spare will help you in the long run.

If you’re on a tight budget then staying on top of your spending and being clear on your budgets for each area will be the key to not overspending.

Once you have your total budget, you can start allocating funds for different items. For example, food and gifts are usually the biggest expenses, so you’ll want to make sure you have enough money set aside for those.

It can help to set a per person budget for close friends and family so you don’t overspend on any one person. If you have kids, it can be tempting to go overboard on presents, but do your best to stay within your budget. This will not only save you money, but it will also teach them the value of money.

If you plan on buying new decorations or hosting a holiday party, you’ll need to factor those costs into your budget as well.

Finally, don’t forget to account for any other expenses, such as secret Santa gifts or party clothes. By taking all of these factors into consideration, you can set a christmas budget that works for you and your family.

Creating a budget is probably the single most important thing you can do to save money at Christmas. Knowing how much you have to spend and what you need to spend it on will help you make informed choices about your spending.

Christmas Planners

Check out our Christmas planners designed to make Christmas planning easy. We’ve made sure everything  you need is included, from budgeting to gift lists, and more!

If you’re looking for Christmas planning tips check out our post about Christmas planning through the year. We’ve broken down all of the most important tasks into easy month-by-month tasks so you’ll be organised and ready for Christmas.

2. Make Your Own

One way to save money during the holidays is to make your own Christmas gifts, cards, and decorations. Not only is this cheaper than buying them, but it’s also more thoughtful. Your loved ones will appreciate the time and effort you put into making something special just for them. Plus, there’s nothing quite like the feeling of knowing you made something with your own two hands. So this year, save yourself some money and stress by DIYing your Christmas gifts and decorations. Your bank account (and your loved ones) will thank you.

Some simple homemade gift ideas:

  • Knitting a scarf or pair of socks is a thoughtful present that doesn’t require a lot of time or money.
  • If you’re feeling more ambitious, you could try your hand at making candles or soap.
  • If you have a particular hobby or skill, you could create something related to that. For example, if you’re a photographer, you could make a photo album or framed print.
  • Bake some Christmas gingerbread men or cookies and package them up in a cute tin or box.

Whatever you choose to make, homemade gifts are sure to be appreciated by your loved ones.

3. Savvy Shopping

Instead of fighting the crowds at the mall or emptying your bank accounts to buy brand new gifts, why not try something different?

Second-hand stores and charity shops are full of hidden treasures just waiting to be discovered. You never know what you’ll find – and bargains abound!

If second-hand isn’t your style, there are plenty of online auction websites where you can often snag brand new items at a fraction of the retail price. And your friends and family will never know the difference!

Shopping like this requires some patience to get the best deals but if you can spare the time you can really save some money.

Creating a menu plan is another way to make sure you don’t overspend on your festive food bill. Thinking through what you intend to cook and making a shopping list you can stick to will go a long way to reducing your spend on ingredients. If you’re cooking for a large group then it can be difficult to get quantities right and buy too much or too little. By planning ahead you can think through everything you’ll need and won’t be caught short or overspend on groceries this year. If you’re looking for ways to save time and money when it comes to Christmas cooking, we’ve put together some Christmas cooking tips to help save time and money.

4. Stock up Through the Year

If you’re the type of person who leaves their Christmas shopping to the last minute, you’re not alone. In fact, many people find themselves scrambling to find the perfect gifts for their loved ones in the weeks leading up to December 25th. However, this can often lead to overspending and even financial stress.

One way to avoid this is to spread out your gift buying throughout the year. This way, you can take advantage of sales and special offers, and you won’t have to worry about going over budget.

Stocking up on non-perishable food items like soups and tinned goods through the year will save both time and money when December comes around. The same goes for other items like wrapping paper, cards, and ribbon. By buying these things in advance, you can avoid the holiday rush – and save yourself some money in the process.

how to save money at christmas

Xmas Planning All Year

Planning for Christmas all year is a great way too reduce stress and save money at Christmas.

Check out our monthly plan for simple tasks you can complete from January to December.

5. Take Advantage Of Post-Christmas Sales And Discounts.

One of the best ways to save money during the holiday season is to take advantage of post-Christmas sales and discounts. Many stores offer deep discounts on items like wrapping paper, cards, gift sets, and decorations.

By stocking up on these items straight after Christmas, you can save a lot of money that you would otherwise spend during the peak holiday shopping season.

In addition, many stores offer special deals and promotions on post-Christmas items, so it’s worth taking the time to comparison shop and look for the best deals.

By being smart about your holiday shopping, you can easily save a significant amount of money.

6. Create A Savings Plan

Setting up a Christmas savings plan is a great way to ensure you have a stress-free holiday season. By setting aside a small amount each month, you can avoid the last-minute scrambling to come up with the cash for presents and travel. And, let’s be honest, who hasn’t gone into debt at least once during the holidays? By starting early and be prepared, you can avoid that holiday financial hangover come January.

So how do you set up a Christmas savings plan? First, decide how much you can afford to put away each month. It doesn’t have to be a lot – even a small amount can make a difference. Then, set up a dedicated savings account or use a Christmas-themed piggy bank to store your funds.

Each month, transfer your chosen amount into the account and watch it grow!

Finally, resist the urge to spend your hard-saved cash on non-holiday related items – remember, this is for Christmas only!

By following these simple steps, you can take the financial strain out of Christmas and enjoy the season worry-free.

7. Cut Back

It can be easy to get into a routine of spending more and more each Christmas. But if your budget is tight, it’s important to cut back on spending and focus on what’s really important.

There are a few simple ways to do this. First, take a close look at your gift list and see who you can remove. This might be the year to send a card only to distant relatives or friends you don’t see often.

Next, take a look at your budget for entertaining and see where you can cut back. Instead of hosting an elaborate dinner party, why not invite friends over for drinks or ask them to contribute by bringing their own booze or a dish they’ve made themselves?

If you always create an elaborate outdoor Christmas display, now might be the time to scale back and focus on a few key pieces. Outdoor Christmas lights can really get you in the Christmas mood but the costs of buying, maintaining, and running them can quickly add up. If you’re trying to save money, consider turning them off earlier in the evening or switching to LED lights, which are cheaper to run and will last longer. Another good option is solar lights if you’re looking for an eco-friendly way to save money.

Do you always buy a real tree? Nothing beats the smell of a real tree but that Christmassy smell comes at a premium. A fake tree will cost you less in the long run and you won’t have to deal with the hassle of disposing of it after Christmas.

Finally, think about how you can use your time and talents to save money. If you’re a whiz in the kitchen, why not bake homemade Christmas cookies or cakes instead of buying them? Or if you’re crafty, try making your own cards, gift tags, or wrapping

8. Use Up What You Have

Think about how you can use what you already have to save money this Christmas. Can you make your own decorations instead of buying new ones? Can you reuse wrapping paper or gift bags from last year?

Instead of throwing away unused wrapping paper, cards, and gift tags, recycle them and use them again next year. The paper and gift tags might not match but it’s not the end of the world and will save you money and help reduce your impact on the environment.

So before you start your Christmas shopping, rummage through your attic or garage and see what hidden treasures you can find. Chances are you’ve got enough paper to wrap a whole sleigh-full of presents already.

9. Set Some Ground Rules

A fun but frugal way to save money at Christmas is to agree amongst close family and friends to some ground rules. This can be things like limiting the number of gifts per person or implementing a spending limit.

If you have a large family, setting a per-person gift limit can help to keep spending under control. Perhaps everyone could agree to spend no more than £50 on each person. Or if you want to be really strict, set a limit of £20 or £30. This might sound like a challenge but it’s actually quite doable and even fun if you get creative with your gift ideas.

Another option is to have a secret Santa instead of buying gifts for everyone. This is a great way to reduce the number of gifts you need to buy and can be lots of fun too. To do this , everyone draws a name out of a hat and then buys a present for that person. To keep costs down, you could set a limit of £20 or £30 per person.

Whatever ground rules you decide on, make sure everyone is on board with them before Christmas so there are no surprises.

Final Thoughts

By getting creative and thinking outside the box, you can save money this Christmas without sacrificing the things that are important to you.

Finally, don’t forget that experiences can often be more meaningful (and fun!) than material possessions. Instead of spending money on gifts that will end up collecting dust, why not focus on creating lasting memories with your loved ones? Whether it’s taking a festive walk to look at Christmas lights or cooking a holiday meal together, experiences are the gift that keeps on giving.

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