IDEAL HOME’S COLUMNIST AND DIGITAL EDITOR OF MONEYWEEK.COM KALPANA FITZPATRICK SHARES HER FINANCIAL WISDOM
Get your finances ready for Christmas
*FINBRI
The festive season is almost upon us – and while most people tend to leave the bulk of the prep and shopping to the few weeks before the big day, when it comes to money, the sooner you start preparing the better.
This month, Kalpana shares her top tips to help make your budget stretch further and avoid a new year financial hangover.
BUDGET NOW
It’s easy to get carried away with spending at this time of year. But shopping without a budget and allowing yourself to overstretch ‘because it’s Christmas’ can land you in debt, which you could spend 2024 paying back.
Instead, work out how much you can afford to spend this festive season and draw up a budget for everything from presents and food to going out. You can use the free budget planner on the government’s MoneyHelper website to create one:moneyhelper.org.uk/en/everyday-money/ budgeting/budget-planner.
A note on presents: you do not have to buy everyone a gift! Not only is it expensive, but it can put unnecessary pressure on both yourself and the recipient, who may then feel obliged to go out and buy something for you. Always stick to a strict list to keep your spending in check.
A WARNING ON GIFT CARDS
If you’ve run out of inspiration for presents, buying a gift card may seem like a good idea. But be warned, gift cards can be risky; if a firm goes bust, your card may not be spendable and you will lose your money. It’s also important to note that most gift cards have an expiry date, so if your recipient forgets to use it, it will become worthless and you will have thrown that money away.
If you do decide to buy a gift card or a voucher, make sure it is for a solid reputable retailer (though that doesn’t mean it can’t go out of business) or buy one that can be used at multiple stores, such as One4all or Love2shop. Alternatively, you could simply give cash. Many people would prefer to receive cash instead of a retail voucher that they may or may not get round to using.
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