How To Do Christmas On a Budget

Christmas is notoriously an expensive time of year, but this festive season could be one of the most challenging yet. From soaring energy bills to supermarket inflation, households are suffering the biggest drop in living standards since the 1950s – and that’s before the harsh winter months arrive.

If your budget requires you to cut back on your Christmas spending, then you’ve come to the right place. To keep costs down, we spoke to experts to find out how to have a fun vacation that doesn’t break the bank. Read on for helpful top tips…

1. Set a budget

Christmas cheer often comes with a hefty price tag. According to research conducted by YouGov The average Brit spent £388 on Christmas presents last year, with 45-54 year olds spending the most. From celebratory drinks to stocking fillers, now is the perfect time to make a list of everything you need over the holidays – and decide what you can cut back on.

“Create a budget of all the expenses you’ll need to cover for Christmas, including food, gifts, travel and decorations, so you can manage your spending and find ways to save money,” says Sam Whillance, savings expert at Deal Town. “Be sure to think about any events you will either host or contribute to, as well as special Christmas day outs like ice skating or going to a pantomime.”

2. Plan ahead

Planning ahead pays off. One of the reasons we overspend on Christmas shopping is that we wait until the very last minute to do so. If you can, take the time to get your gifts ahead of time. Keep an eye out for Black Friday and Cyber ​​Monday deals, as well as general pre-winter deals.

Keep an eye out for discount codes customers receive via email. Salman Haqqi, money.co.uk Personal Finance Editor, suggests: “Sign up for emails from the stores where you will be spending the most money in the weeks leading up to Christmas. You’ll get notifications for things like discounts, free shipping, and in-store promotions.”

3. Buy used

One of the most obvious and well-known benefits of secondhand shopping is the cost savings. You can often find used goods up to 50% cheaper than elsewhere.

Second-hand doesn’t mean second-rate. With a little know-how (read Angel Strawbridge’s top money-saving tips to master the art) you can find brilliant gifts to wow under the tree. Vintage shops are great for finding old books, wooden toys, pretty baubles and winter coats.

“Buying second-hand gifts not only saves money, it also helps the environment,” adds Salman. “There are countless websites that sell used items in good condition at a discount, like Preloved and Gumtree, and places like Facebook Marketplace.”

4. Reduce your energy consumption

Christmas is a time when our energy bills skyrocket. According to EDF Energy, UK households use a total of 66 million pounds of electricity on Christmas Day alone – a whopping 402,144,104 kWh (or 402 GWh) of electricity.

As the cost of living continues to rise, it’s important to think about how you can reduce your energy consumption at home. Some of the simple things you can do are keep interior doors closed, draw curtains, lock windows and doors against drafts, and avoid the tumble dryer.

When it comes to saving energy on Christmas Day, Abigail Yearley, a spokeswoman for TopCashback.co.uk, suggests: “Why not ask your guests to bring a dish or two? Not only will this reduce your energy consumption, but it will also take the pressure off you. Make a mental note to turn off all lights when you’re not in the room or not getting the benefit of it, another way to reduce your energy bills. It might be tempting to leave the Christmas tree lit all day, but a hefty late December bill might not be worth it.”

It’s also a good idea to reconsider your decorations and how many Christmas lights you need both inside and outside the home. Make sure the ones you want to keep are LED.

5. Reduce the cost of your grocery store

One of the best ways to reduce your grocery store expenses is to prepare meals based on the number of guests you’re feeding – and only buy what you need.

“Sit down and create a meal plan to figure out what you’re going to cook and how many people you’re going to feed so you know exactly what and how much to buy. That way you avoid wasting food and money,” says Abigail.

“For additional savings, swap out some of the branded products for your supermarket’s own range – in most cases you won’t notice much of a difference.”

6. Play actual roulette

“Christmas shopping can get very expensive when you’re shopping for a lot of family and friends. So why not try to get the imp out of the office this year? Put names in a hat and let everyone choose one person to shop for,” adds Salman. “Ask people to write down their three favorite gifts and you’re on your way to a faster and cheaper holiday sale.”