Christmas - if you celebrate it - is a joyous and special family occasion.
But it can also be a time of great anxiety if you are struggling financially.
Children want presents, there are gifts to be bought for family and friends, and luxurious ingredients to be bought for festive feasting.
Budgeting
But this can be difficult when funds run low, and that feeling of failure can cause a lot of strain and stress.
If you are worrying about how to make the dollars stretch, here are some useful tips on how to budget for Christmas.
- Make a list: This is a key step in budgeting because it means you can prioritise and avoid wasting money on unnecessary things. A good idea is to divide your list into gifts, food, clothes and parties. You can then decide what things are essential and where you can cut back and save money.
- Pay your bills: Make sure you put enough money away to pay your priority expenses - rent, mortgage, utility bills, etc.
- Borrowing: You should avoid getting yourself into debt unless it's absolutely necessary. If you do need a small loan to get you through Christmas, only borrow what you truly need. If possible, try to pay back this loan before the middle of next year, otherwise you will find it difficult to save for next Christmas.
- Rules of borrowing: When you borrow you should always work out what the weekly or monthly repayments are going to be and see how this will affect your budget next year. When looking for a loan, try to get the best value you can. Generally, loans from a money lender will cost you much more than a loan from your credit union or bank. Using a credit card is also a very expensive way of borrowing money. Remember to read the terms and conditions of any credit application so you understand what you are getting into.
- Secret Santa: If you have a group of friends or family, don’t all buy for each other. Get together and each buy one present with a very small budget. Wrap it up and everyone picks
one out. Remember, it's the thought that counts. - Recycle: If you have unwanted presents from last Christmas or things you no longer need, sell them to make money or if they’re good enough, give them away as presents this year!
- Shop in advance: OK, this might be too late for this year but the best thing to do to save money for Christmas is to buy in the January sales and stash it away safely until the following Christmas. Just don't forget where you've hidden them!
Key takeaways
Christmas should be a time of celebration and joy, but it can become particularly anxiety-inducing for those struggling financially.
The main thing to remember is that you should NEVER get yourself in debt unless it is absolutely unavoidable.
But if you are taking a loan, ensure you can make the repayments without putting yourself into further debt.
Following our tips above should help take away some of the stress.