Do you need to go through financial pressure? Most individuals take the hassle just to have that “perfect day”. Christmas preparations involve expenses that could easily spiral. It makes one tap every earning source and saving pot. It leaves one with debt and no savings afterwards. So, what’s your plan for the festive season? If not prepared, the blog may help. It lists some strategies to plan a Christmas without building bills for later.
6 strategies to ensure a debt-free Christmas
According to experts, planning for the most expensive thing first reduces the burden. It helps you achieve other goals quickly. So, what comprises about 60% of your Christmas budget? It is none other than gifts. Gateway guide puts it, “Presents and cards are the most expensive.”
Prepare a list of the individuals you wish to gift this year. Some bonds change over time. There is nothing to feel bad about it. Optimising the guest lists helps save some money. Here are other aspects to consider and budget for:
1) Identify last year’s expenses
One of the best ways to reduce the expenses is by analysing the previous year. According to Charted Financial planner and co-founder of Money-First Aid, Rachel Harte –
“Looking at the previous bank statements helps identify your Christmas spending. It helps you understand what you spend on during the occasion. You can know the extra cash you must save to meet the target. Always prepare a list of the items you spend on. Additionally, compare your outgoings with the last year. It helps identify the items to cut the spending on.”
Rachel shares 18 years of expertise as a financial planner. She guides individuals on the best ways to reduce debt and manage finances.
Identifying last year’s expenses reduces your total budget. You eventually spend less than you must.
2) Begin saving from today itself
Do you think you still have time for Christmas preparations? You lose another precious second as you read this. No, you don’t. It’s high time to save the bare minimum. For example- if your disposable earnings are £300, save at least £100. The amount does not matter, however, the effort does. Prioritise debts and utility payments.
Afterwards, save some for emergencies and towards Christmas expenses. You can also plan a weekly savings plan. It will help you save more than expected.
For example- even if you save just £100/week, you can save £400/month. That’s better than just £100. Identify which pattern works best for you. However, individuals with limited earnings struggle. Most of their earnings go towards unplanned expenses. Not everyone can have an emergency fund.
Thus, it may affect your savings goal. Don’t worry, you don’t need to skip the Christmas savings. Instead, contact the best direct lender for a loan in the UK marketplace. Direct lenders are experts in helping individuals counter emergencies. They provide the needed guidance and cash assistance. It helps one meet goals without worries. Identify the terms before consenting to the loan agreement.
3) Don’t be trapped by marketing strategies
70% of individuals fall trap to good marketing campaigns. Some companies are experts at it. However, it is all about controlling spending instinct. For example, you may encounter an advertisement like-
“Get fresh fruits delivered to your doors for free. No shipping costs!”
It simply is not possible. Companies may not charge shipping costs. You still pay more for the product. It is not an affordable deal. Retailers want customers.
Shopping platforms lure people with such offers. Most products include shipping costs. One doesn’t see that. Thus, it is all about conscious shopping. Always keep a list of the items you need. It helps you stick by these things only. No matter how hard you want another thing, you won’t buy it. It is because you have a budget now.
4) Utilise a portion of tax-free rebates
Do you still have a tax-free rebate? Cool! It may help you with Christmas shopping and preparations. Most individuals generally leverage it after the 6th of April; that’s the taxation time. Most individuals forget about the relief that they get from overpayments. Yes, you can use the money for your purposes. The amount you get as a rebate depends on your contributions and income band.
The highest taxpayers get the most benefit. Identify the tax benefits for which you may be liable. Check if you claimed your share. If yes, plan the things accordingly. It may help you counter at least 30% of expenses, if not the whole.
5) Eliminate the wasteful expenses
You may have prior experience with this. For example- you bought additional decorative items that you did not use. It proves to be a useless expense. Moreover, additional disposables affect the budget. Consider such aspects while re-planning for Christmas.
You can use the existing decorative items instead of buying new ones. Similarly, disposables should be eliminated from the purchase list. Identify such items that you can cut from the list. You will be surprised to see the results. You can save around £5000 with this activity.
However, you may still need financial coverage. Individuals with low income or unemployment struggle. They find it hard to arrange the items for Christmas celebrations. Don’t worry, everyone deserves to enjoy the event. Identify the amount you need more to meet expenses.
Check Christmas loans on benefits income near your location. You may spot ample providers with different quotes and interest rates. Contact the one with affordable terms and interest rates. It will help you finance the needs without affecting the budget’s bottom line.
Yes, most loan providers consider income from benefits slips. However, it should be relevant and genuine. You must have proof of part-time income as well. Some loan providers may need additional income to grant the loan. You may use the basic amount to bridge the expenses.
6) Benefit from early shopping deals
Lastly, identify the active deals nearby. It is high time we explored the best offers there. You may spot some valuable items or groceries for unexpected rates. It may help you pay less than expected. Automatically, this increases your savings.
Moreover, you don’t have to rely on any instant cash or third person for help. You can check the stores for the best but cheap gifts too. It reduces your expenses there.
Bottom line
These are some expert-based tips to avoid financial hangover. Knowing the aspects and the budget reduces the extra expenses. It instead helps you utilise the savings towards utilities or other urgencies. Moreover, identify the ways to free up cash like- consolidating debts. It helps settle the dues and frees some money. It is the best way for individuals with multiple debts. You can use the cash and improve your financial well-being simultaneously.
