As Christmas approaches, the excitement of the season can be overshadowed by financial stress, particularly when it comes to managing holiday expenses. 

For some, this may mean turning to credit to cover costs, with 29% of people planning to rely on borrowed money. 

However, financial experts recommend avoiding this if possible, as overspending can lead to longer-term financial strain.

The good news is that it’s not too late to get your finances in check. 

By taking some simple steps now, you can create a budget that lets you enjoy the holiday season without putting your financial well-being at risk. 

Nick Charalambous, Financial Advisor at Alpha Wealth, offers 7 Last-Minute Tips for Christmas Budgeting, designed to help you navigate the holiday season with ease and peace of mind.

Set a Spending Limit and Stick to It

Start by calculating how much you can realistically spend. Divide your budget into categories like gifts, food, decorations and socialising. 

This will help reduce financial stress. Be clear about what you can afford, make a list of people you plan to buy for, and set a spending cap for each person. 

This way, you avoid overspending on unnecessary gifts as many people panic shop.

The Rule of 72

Before you embark on any purchase that isn’t essential, I suggest you use the “Rule of 72.” 

Wait 72 hours before deciding if you still want the item, and then proceed. With the rise of social media ads, we are more at risk of impulse buying.  

I have been lured into these and found that if I don’t buy immediately but store them, I don’t proceed three days later.

Avoid taking out high-interest-rate loans or using your Credit Card

Loans and credit card use seem tempting but will put you under financial pressure in January. 

Credit Cards are a big “No No”.  

If borrowing is essential, get a loan from your bank or credit union as, whilst not ideal, it will offer lower interest rates, and you don’t keep driving up the debt that a Credit Card allows. 

Avoid spending money you don’t have with flexible credit card limits.

Take advantage of Sales

Pre-Christmas sales are great for discounts on gifts, but make sure they are planned and shop for these.  

Don’t forget tip two above, though, if it is for yourself. Remember to apply the ‘Rule of 72’ for any personal indulgences.

Use a Cash-Only System

In some cases - especially if you are going out and socialising - withdraw your cash. Using your phone or tapping leads to overspending.

Take advantage of any vouchers you have you haven’t used

Being creative and recycling vouchers to either buy an item or gift the voucher you would never use helps. 

I recently found a voucher in my wallet I had forgotten about since last Christmas.

Plan for Next Year

Lastly, while creating a last-minute budget is possible, starting earlier for next Christmas will make the season even less stressful. 

Open a holiday savings account in January and contribute a small amount each month. You’ll have a dedicated fund ready to cover your expenses by December.

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