While you may be relieved that Christmas is over for another year, it will really pay to start getting sorted for the next one now - find out why!
Whether you opt for an extravagant celebration or a low-key Christmas, spending money seems to come hand in hand with celebrating the festive season. But it is possible to have a Christmas with no money worries and all your presents and paraphernalia sorted by December. The key is to starting to plan for it in January.
Though the idea of thinking about Christmas this early may seem slightly unorthadox, planning for the season little by little over the year will pay dividends.
Start saving soon
The best way to prepare your finances for the onslaught of Christmas with minimum effort is to work out a rough budget – how much you anticipate you’ll spend on Christmas when taking into account presents, food, drink, decorations, etc. Be realistic and use this year's spend as a guide. Divide your estimated spend by 12 and you'll know how much you need to squirrel into a savings account each month to cover the cost of next Christmas.
Spread the cost
Saving throughout the year will not only give you a more measured view of how much you're spending on festivities (it can often come as quite a shock when you add it all up) but will also mean you avoid putting your finances under strain come December. What's more, spreading the cost will mean you don't end up paying over the odds for your presents by funding next year's festivities with high interest credit cards.
You'll also have the cash available to stock up on any 'perfect presents' that catch your eye throughout the year, and the time to wait until they get reduced in a sale, so your money goes a lot further than if you'd simply waited until the Christmas frenzy starts again. Just remember to make a list of any presents you buy for Christmas now so you don’t buy for the same person twice.
Get a little back
Putting money aside throughout the year in preparation for Christmas is a good idea made even better if you save in a high interest savings account. This way you’ll earn interest on whatever you save, upping the value of your Christmas kitty even more. Take a look at the savings accounts on the market and choose one that’ll pay you a decent return on your diligent saving and give you penalty free access to your money when you need it.
Just imagine how stress-free and financially savvy you’ll feel when next December rolls around and you don't have to worry about how you'll cover the cost!
