Why it’s a good idea to start saving for Christmas right now

Get the festive season all wrapped up with a savvy savings plan.

Vicky Shaw
Friday 18 October 2024 08:35 BST
How to budget for the festive season (Alamy/PA)
How to budget for the festive season (Alamy/PA)

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Christmas may still seem a long way away, but if you make a few tweaks to your saving and spending habits now it could help to ease any financial hangovers brought on by the festive season.

Planning ahead gives households time to put some savings aside from a few months’ pay packets and could also lessen the need to get into debt to make budgets stretch over December.

David Murray, a financial planning expert from abrdn, suggests: “Saving little and often each week will ensure that you have a pot ready come December.

“Weekly savings could feel more manageable than putting bigger amounts aside when you get paid too.”

Murray adds: “As an example, if you could put away £20 each week for eight weeks leading up to Christmas, you’ll have £180 in your pocket. This could help with the festive grocery shop.

“Or, if you were able to save £30 a week, you’d reach £270 in the same time frame, giving you the budget to sort groceries and last-minute gifts.”

If putting money aside feels too much of a squeeze, Murray suggests reviewing your usual monthly spending to see if you could make a few cuts now.

“Even if it’s just for a few weeks in the run-up, it could make a big difference,” he says.

Thinking ahead also means there’s still time to have some delicate conversations about Christmas finances with loved ones.

Murray says: “Depending on the size of your Christmas party – whether that be friends, family, neighbours, colleagues – the list of people to get gifts for can feel endless.

“Having early conversations with friends and family about budgets, and putting spending boundaries in place, can ease any anxiety about gift affordability and ensure expectations are matched.

“It might feel daunting, but it is completely normal, and you might find that your loved ones are grateful to be open about Christmas costs.”

There’s also time to consider ways that you could potentially inject a bit more cash into your Christmas budget, perhaps by selling a few unwanted items.

eBay UK recently ditched fees for private sellers across its categories, except motor listings.

The website estimates there are 294 million unused items in homes across the UK and a resale potential of over £9 billion to be unlocked.

Half of households (50%) value their unused items between £50 and £300 and nearly a quarter (24%) are sitting on items worth over £500, according to the website, with commonly unused items including clothes, CDs and tech.

Murray adds: “You could also consider using survey websites which have financial incentives for giving your opinion too. If you have some time to spare, this is an easy way to see that bank balance go up.”

And as other people clear out their unwanted items, now could also be the perfect time to start looking online for Christmas bargains.

According to Gumtree, listings for Christmas decorations have already jumped.

Listings mentioning Christmas decorations lifted by more than a third (35%) month-on-month in September. Some 54,000 listings were related to Christmas decorations.

Replies to Gumtree ads mentioning Christmas decorations surged by 154% month-on-month in September – indicating some people have already been planning ahead.

If you’re planning to scour Gumtree for Christmas items, the website’s expert Hannah Rouch suggests looking in the morning to get the widest choice.

She says: “The highest number of listings go live between 9-11am on a Friday, Saturday and Sunday, so if you want the best selection of items, get searching early on the weekend.”

She also suggests negotiating on items where there’s plenty of choice, adding: “Most sellers expect a little bartering when selling second-hand, particularly when many similar items are available for sale. The Gumtree categories with the highest supply include sofas, beds, baby toys, bikes, wardrobes and tables.”

To prevent your budget being blown off course by unexpected purchases, Adam Bullock, from website, TopCashback, suggests compiling a checklist – not only for gifts but for socialising too.

He says: “Think about what you want your Christmas to look like this year. From how many people you’d like to buy presents for, whether you’ll need to buy food and for how many, as well as any other expenses such as festive trips out with friends, travel costs, and any outfits or additional extras you typically buy at this time of year.”

Doing this now will help you work out whether the Christmas 2024 you’re imagining is actually realistic, or whether you need to make some tweaks by saving more or trimming some costs back.

“Spend an hour one evening putting pen to paper and write everything out,” he says.

“Look at your diary too, as it will help you remember any commitments, like a pre-Christmas trip to see relatives.”

And with stores’ “special offers” likely to be everywhere in the next few months, Bullock suggests adopting the “24-hour rule” before making a non-essential purchase.

He says: “After 24 hours, you might even realise you don’t need it or, better still, end up forgetting about it.”

If you’ve got your eye on particular items, it could also be worth researching the prices of them now so you can spot the real bargains when sales take place.

Websites such as PriceSpy and PriceRunner can be used to help compare deals – and to make finding Christmas bargains a little easier you could also make use of browser extensions to automatically find and apply discounts.

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