Financial Planning for Christmas
Approximately £868 per household was spent at Christmas across the UK and Northern Ireland in 2014; which is way over budget for the majority of people. The lead–up to Christmas is just around the corner, meaning the dreaded spend is looming.
Here are some tips to help you make a manageable and affordable financial plan for your Christmas budget this year.
1. Set a Reasonable Budget
Whether you plan a year ahead or have just started thinking about your Christmas finances, setting a budget will give you a clear indication of how much money you are able to part with. Take decorations, cards and food into consideration when planning, as well as presents. Whatever your budget, divide that amount into weekly amounts so that you can save easily rather than having to dip into savings.
2. Avoid using Credit Cards
While credit cards make it easy to purchase items when you don’t have cash at hand, you could land yourself in a financial crisis after Christmas known as the ‘January Blues’. If you absolutely must use a credit card, withdraw from a cash machine so that you can only spend a set amount within your intended budget.
3. Expensive v Personal Presents
The kids may be pestering you for the latest video game or mobile phone, but you shouldn’t feel guilty if you haven’t got the cash to splash. If they are old enough to understand money issues (and no longer believe that Santa provides the presents!), perhaps have a little chat to allow them to see that you are doing your best and can only buy what you can afford.
If you are finding it hard to budget for everyone, create personal presents instead. Gifts such as these usually mean much more than anything purchased from the shop. You shouldn’t have to explain yourself, as many people do this to be both cost–effective and unique.
Before or after you have survived Christmas contact the expert financial adviser at Financial Foresight, who can help you plan for financial hurdles such as mortgage, retirement and education.
