Christmas without presents is like a holiday without rest, it just doesn’t fit. Therefore our Christmas saving tips will help you to be prepared, despite the credit crunch and our consumer debt. If you plan for extra spending early enough, you should be able to able to enjoy the festive season without feeling deprived of anything.

Unlike the unnecessary Christmas shop decorations who creep up on window displays months in advance, financial planning is a must if you don’t want to be sucked into last-minute spending that will end up costing you a lot more because of high-interest debt with store cards.

Christmas saving tips:

The following tips will get you on the right track financially. It is a common sense five step savings plan suited to all incomes and budgets. The secret to seeing this plan to the very – successful – end is to abide by it.

  • Who are you going to gift: The first step is to decide which people will be receiving a present from you. It pays to be realistic here and really only gift those people who mean something to you. I think Christmas has gone out of hand in recent years with the ever-increasing pressure to buy presents for the whole neighbourhood (at least it feels like this.)
  • How much will you spend on each person: Once you shortlisted the right ‘candidates’ for your gifts, it’s time to decide on a suitable present, affordable to you, but at the same time needed/wanted by the person. Here is a little hint: If you really struggle financially, think of other ways with which you can gift people. Perhaps with a service voucher; services you can provide free of charge at no cost to you except time.
  • It’s time to add up: Now that you’ve got the amount of people and the cost of each present you intend to gift it’s time to add up the total cost to you.
  • How many paychecks to Christmas: With the total figure needed to buy all presents, calculate how many paychecks are left until Christmas, or the week prior to allow for the actual shopping. Then divide the total by this number. For example, if you needed $1000 for all presents and there were 18 paychecks left, you would need to save $55.55 with each check. To do this you should…
  • Consider opening a special high-interest savings account: By taking the money away from your normal everyday account you probably won’t even realise it’s there somewhere. If you can place it into a separate account, chances are the money will stay there until you need it.
  • These Christmas saving tips work if you are prepared to start now. The sooner you put a plan into action, the more money you will be able to save. If you struggle with existing credit card debt then going this route is safer on your pockets and easier on your mind.