'Tis the season for presents, parties and, potentially, pressure on your bank balance. So we asked Kalpana Fitzpatrick, author of Invest Now: The Simple Guide to Boosting Your Finances (and Papier’s very own finance planner) for her tips to help you budget for the festivities and start the new year financially fit.
1. Reframe your mindset
Christmas is just one day and while it is easy to get carried away with the excitement of the season, being sensible means you can save money and focus on your financial goals. Use your Papier finance planner to write down your goals for the upcoming year.
Maybe you're saving for a holiday, some home improvements, want to clear debt or just want to save more – whatever it is, changing your focus and thinking about your goals will stop you spending unnecessarily this holiday season. It also means you will start the new year knowing exactly what you want to achieve.
2. Embrace a budget
The word budget sounds like a bit of a killjoy, but putting one in place is the most important thing you can do to keep a lid on your seasonal spending. A budget can stop you overspending, avoid additional debt and put you in control of your money. To get started, use your finance planner to work out what money is coming in (income, money from a side business or benefits) and what your expenses are each month (bills, travel, groceries and so on).
This will tell you exactly how much surplus cash you really have left to spend on gifts, food, going out and other festive treats. And remember, this isn’t about cutting out the festive fun, it is more about having fun without creating debt.
Last year, Brits spent an average £388 on Christmas gifts, research shows, but you can trim back by cutting back on the number of people you buy for. Prioritise the people that matter most, set a limit against each name and stick to it. Small, homemade gifts or a meaningful handwritten note can often feel just as, if not more, special.
Similarly, don’t blow the budget on festive food – make a list and stand by it. As for drinks – simple swaps like prosecco instead of Champagne will be just as sparkly, but without the big price tag. Don’t forget to budget for travel costs if you’re going to see family during Christmas. Book early – you could even swap the train for a coach to keep costs low. If you use the train, try Split My Fare – splitting your journey could save 90% on your train costs. And if you’re driving, get the cheapest fuel by comparing prices at petrolprices.com.
If you’re going out for a festive celebration or two, cut back on the cost of your outfit by either buying a pre-loved party dress (try Vinted or Depop) or even hiring an outfit (try Hurr, By Rotation, John Lewis or Selfridges).
3. Keep track with pen and paper
Use the tracking tools in your finance planner to keep note of your spending this Christmas to make sure you stay on track with the budget you set for presents, festive food, parties and so on. Writing things down in your finance planner gives you accountability and you’ll know exactly where your money is going.
You can also use the monthly calendar in the planner to write down deadlines, tasks and big purchases coming up – like a new year tax return or a reminder to renew your car insurance, for example. These all have to be paid after Christmas so keeping a note in your finance planner is a good idea and a reminder not to get too carried away this holiday season.
4. Hunt out a good bargain
If you have something on your gift list and it is discounted, take advantage. Christmas is expensive but there are seasonal discounts on gifts, food and even clothes to be fun in the run up to the big day.
Jot down a list of gifts you want to buy this year and estimated costs. And if you spot anything on your list reduced, it could be a good time to buy it.
Better still, you could even ask your family if they would like to do a Secret Santa instead of buying a gift for everyone. It will save you heaps if you have a big family and can take the stress out of gift buying.
5. Get appy
I love a good app, especially ones that save you money. Use Airtime rewards to get something back from your Christmas spending. The app gives you money off your phone bill when you spend at your favourite stores. If you’re out shopping or grabbing a Christmas lunch with friends, take a look at Vouchercodes for an instant discount at various stores nearby. And if you want to boost your savings, use the MoneyBox It rounds up your spending to the nearest pound and invests it for you - knowing you’re putting something away is a nice feeling once Christmas is over and will give you a headstart for 2023.
To help with your money, take a look at Papier’s finance planner, designed with pages for budgeting, money tracking tools and a series of helpful articles written by Kalpana.
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