Easy ways to prepare for Christmas on a budget

As the countdown to Christmas ramps up, many of us are consumed with the pleasure and pain of shopping, putting together festive menus, and organising seasonal makeovers for our homes, before we entertain our family and friends. It doesn't have to be stressful though. Here are some tips to help you to enjoy the festive season without breaking the bank.

Set a realistic budget

It’s easy to get carried away with impulse buys and sadly, overspending is an easy trap to fall into. Before you do anything else, it’s important to create a Christmas budget. If you don’t set one, you could fall into the trap of spending way more than you have and even end up starting your new year in debt!

Be sure to include gifts, cards, wrapping, food, entertainment, decorations and any travel or accommodation expenses in your festive budget. It might surprise you how quickly everything begins to add up when you see it all noted down, so this is an opportunity to cut back if you need to and know your spending limits.

If you find it difficult to stick to a budget, there are plenty of apps available to help you including mymo by P&N Bank. The mymo app is like having a personal finance assistance in your pocket, and you can categorise payments, set bill reminders and budget all in the one place - no matter which bank you use. It may even help you identify areas of spending that could improve your festive budget.

Of course, if you’re not an app user, a good old spreadsheet will help. Just make sure everything Christmas related is included.

Plan your gifts

The worst thing you can do for your budget is hit the shops without a list. Write down all the family and friends you want to buy for, along with the specific gift idea you have for each person. This will give you an indication of the overall costs for the presents under the tree.

For those on a tight budget, consider a Secret Santa approach on Christmas Day. This will give family members a set budget and take the pressure off your bank account as you’ll have less gifts to buy. Other options include making homemade gifts, only buying presents for the kids in your life, or even regifting presents you may have left unopened in a cupboard. Regifting is not only good for your bank balance, but it's a more sustainable way of gifting too! 

Shop around for the best price

If you consider yourself to be a savvy shopper, now is the time to put your skills to the test. Christmas is the biggest time of year for retailers, so make sure you shop around for the best price before swiping or tapping your card, or shopping online. And, pay attention to delivery fees too - these can quickly add up.

As the expenses keep rolling in, you may be tempted to put purchases on lay-by, 'Buy Now, Pay Later' or a credit card. While these can all be really helpful if you have a plan for managing the repayments, make sure you aren’t spending more than you can afford and blowing your budget. And, remember to read all the terms and conditions associated with your payment plans to ensure you fully understand your financial commitments.