According to research from VoucherCodes and the Centre of Retail Research, UK households typically spend around £820 on Christmas – and for many this will be on credit. Yet with some planning ahead, it may be possible to build a pot of cash and make savings here and there which will stop you forking out more than you need to. Leaving preparations until the last minute can mean paying top dollar, as you’ve no other choice.
So, whether or not you’re starting to feel even a bit festive, here are some tips for ways you could save money for Christmas now, to help make your budget stretch further when it’s time to celebrate.
How to save money at Christmas
1. Start with a budget, not a wish list
Once you’ve established your savings strategies, you’ll have an idea of what you can afford to spend. This is where you start – not the big list of things you ideally want to buy. If you don’t have enough cash to cover the wish list, you can then decide either to cut back on each gift, or chat to people you know well enough and agree not to buy for one another this year. Who knows, they may be just as relieved by the idea as you are.
2. Make your shopping lists now
Once all the shops have Christmas music blaring out, it’s easy to get carried away and pile up your trolley with more stuff than you really need. To avoid having to throw mouldy mince pies being thrown into the bin in January, plan the food you really need to buy for the festive season as well as gifts so you’ll avoid over-spending because you’re panic buying.
Also, before the pressure of Christmas shopping really hits, look out for food bargains on the supermarket shelves which could be put in the freezer to keep them fresh for Christmas.
3. Research the price of gifts you want to buy
Don’t just wait for Black Friday to look for price discounts – do your research now and shop around to see what prices are generally being charged now for the items you want. This will give you time to monitor prices over the coming weeks – and swoop in when they drop to a good deal.
With retailers’ prices often going up and down like a yo-yo, some of the ‘bargains’ available during high-profile shopping bonanzas such as Black Friday and Cyber Monday may not be as great a deal as they first seem anyway. Websites such as alertr.co.uk allow you to track products and receive alerts when the prices plunge.
4. Cut out the small luxuries
This doesn’t have to involve a major sacrifice, but if you were to drop a family takeaway once a week, a daily coffee, and a drink after work on Friday, you could put aside an extra £200 a month, which would boost your Christmas savings nicely.
5. Try trading down brands
If you buy branded goods, try the own-brands. If you buy own-brands, try the basic range. Alternatively, give a discount supermarket a try. You’re unlikely to like everything you try, but you may find everyday savings you can take advantage of for life – and in the interim you can cut your grocery bill by 10% or more and put the savings aside for Christmas.
6. Have a pre Christmas clear-out
You could boost your budget by having a pre-Christmas clear-out and putting items up for sale on websites or taking them to car boot sales. Have a look through the cupboards for things you haven’t used since last Christmas along with old presents that you may be able to re-gift.
7. Switch current accounts
Switching your current account provider could be another way to make some easy cash. For example, Royal Bank of Scotland and NatWest have been offering £150 to switch. HSBC has also been offering sums of £75 and £175 to switch to its account range.
When choosing a current account though, it’s important to make sure you’ll be better off with the deal in the longer term, rather than just focusing on any up-front perks. With switching offers, there will be certain time periods you’ll need to wait before you get your reward – but if it’s not in time for Christmas it could come in handy in the New Year when budgets are really stretched.
8. Cashback websites
Sign up to one or two cashback websites, and whenever you shop for anything between now and Christmas, you’ll get some cashback. The amount of cash will vary, but can be up to 15%. Even if you were to get 1% cashback on £500 of spending, it’s still a £5 voucher, which will come in handy.
9. Cashback credit card
This offers similar benefits, but comes with a major caveat: If there’s any chance you won’t pay this off in full and on time every month, then give it a wide berth – or you’ll quickly spend far more in interest than you’ll ever make in cashback.
10. See if you can grab a cheap train ticket
If you plan on travelling during the Christmas and New Year period, it pays to book in advance. Huge savings can be made, leaving more money to spend on ‘fun’ stuff this Christmas. According to booking service Trainline, last year the UK saved a collective £21 million by booking their train tickets in advance, saving as much as £185 on popular routes such as Manchester to London. Those travelling from London to Edinburgh last year saved as much as £133 by booking in advance.
Trainline’s advance train travel booking window is now open, with train operators releasing their tickets for travel home this Christmas. Based on last year’s searches for travelling over Christmas, Trainline predicts that this year’s most popular Christmas journeys will include London to Manchester, London to Edinburgh, London to Birmingham, Liverpool to London, London to Leeds and London to Newcastle.
So if you’re planning to travel one of these routes, it could well pay to make sure you book well in advance – as many other people will be searching for these journeys too. Advance ticket release dates vary by operator.
To make sure you’re ahead in the queue and have a chance of reserving a seat, Trainline has a free ‘ticket alert’ service (thetrainline.com/ticketalert), enabling passengers to input their desired journey and be notified by email as soon as it becomes available. There may also be discounts available if you’re travelling with a group over the festive season.
Looking to have a relaxing Christmas? Read our guide to a stress-free Christmas and peaceful New Year.
