Money saving plans for the New Year

Money saving plans for the New YearAfter the Christmas Novelty has worn off many of us are left facing a large bill in the New Year. It can be hard to avoid using credit cards and loans to pay for the festive season but saving money during the run up to Christmas can help soften the blow in the New Year.

It is safe to say that December is a very expensive month for most of us. Many of us end up borrowing money to cover the costs of Christmas but this can come at a price in interest and large fees. Yes, borrowing money can help you afford things that will make the festive season a very joyous occasion but it can also leave you with debt you may struggle to pay off. Planning your spending is key as this can help you manage your finances correctly. To find out more of Christmas money saving tips read the Money Saving Experts tips on Money Saving as Xmas .

It is vital to set a budget. The typical Christmas spend for an average household can go beyond £500. This includes everything, from food, decorations, presents and other important expenses. To start with, you should make a list of all the family and friends you will be buying gifts for and decide on a budget for each person. You should plan out how much food you will need for your Christmas dinner. You can do this by deciding how many people you are hosting dinner for and then decide how much food and drink you will need. This can help you budget how much money you will have to put aside each month in order to afford to pay for these luxuries.

You can use a Christmas money planner to help you create a budget and see how much you can save in time for Christmas.  You can start with putting aside a small sum each month, even if you put aside a few pounds each week this can make a massive difference in the long run and prevent you from using credit.

Starting early can mean saving megabucks and it also helps to spread the cost. Picking us Christmas essentials such as decorations and gifts can save you from buying these things at peak times when they will be substantially more expensive. There are different deals on during the run up to Christmas and shops offer some great deals in terms of food and gifts so getting in early can help you save money.

Setting up a direct debit can be a good idea, this way you won’t feel the blow as the money will be leaving your account in small sums every week or month. This is a good idea if you start early. For example if you saved for example £15 every month for three months you can save nearly £50! So imagine if you started saving in January! You could save nearly £200 by Christmas.

If you think taking out credit is the only option then you must make sure you know what you are signing up for. Taking out a personal loan or opening up a credit card can mean that you can be signing up for things you don’t need such as extra insurance such as PPI. If you have a credit card or loan and are unsure whether you are paying extra fees then you can check free online.

Samantha is a dog loving, baking fanatic and horror film nerd, she is passionate about sharing her suggestions and tips with a wider audience online and enjoys writing articles that reach out to the readers.

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