Cut Your Costs For Christmas

Christmas is coming and spending more money than last year seems inevitable with the current economic climate. Hundreds of pounds every year gets spent on food and drink, that's on top of presents, socialising and seasonal decorations. No wonder we feel so stressed as Christmas looms.

The British Retail Consortium (BRC) calculated that Christmas Day alone costs each household an average of £975.

Many people resort to some sort of borrowing to cover the cost Christmas adds to the family finances and can end up getting themselves into a bit of a pickle with repayments.

We all promise ourselves that next year we'll plan ahead, buy gifts in the sale and prepare a budget, but how many of us actually do this? I can recount the number of times I saw things in the sales and said "Oh, I should get that for so-and-so!" but I didn't and ended up paying full price as the end of December drew closer.

Getting your head around how much you can afford will help you not to blow your budget in a last minute rush. I have put together some tips that I am following myself this year to help stay relatively stress free, on top of my budget and able to enjoy moving forward into next yearwithout the usual financial hangover in January from overspending.

1. Plan ahead
Be realistic with the food shop as shops open again after boxing day so no need to stock up to feed the millions, just buy what you need to get you through a few days.

Have a look at http://www.lovefoodhatewaste.com/ for some great recipes for leftovers.
Find out how much your overdraft will cost you if you dip into it.

2. Budget & draw up a gift list
Put a price limit next to each name, if it exceeds your budget find a cheaper option (Remember, it's the thought that counts).

Break down your budget into food, drink, travel, socialising, pressies and that new outfit you want to celebrate in.

If you have a BaBeeCard put another column in your budget with where and how much you would save if you used it to purchase everything for Christmas.

3. Hit the shops
Online shopping = good savings and no need to traipse up and down the high street. Redeem any unused loyalty points - There are an enormous amount (said to run into the billions) of unclaimed loyalty points on stores' reward cards and credit cards waiting to be redeemed, why not exchange them for vouchers?

If you are using a credit card to buy presents, try to pay back more than the minimum when the bill arrives in January or you could find your presents costing you double after interest charges.

4. Wrap it
Use old newspapers or magazines to make funky gift wrapping. You have all ready paid for the paper so put it to good use. Use contrasting pretty ribbon and stick on bows to liven it up. Great for your purse and even better for the environment.

5. Mi casa, su casa (My house is your house)
Take it in turns to entertain friends and family over the festive party season, you will get to socialise without the spending.

Suggest sharing the meal. You can prepare the first course and your family or friends can bring round pudding. That way, it will be a nice surprise too!

Have you got any Christmas tips you can share with me to help people cut their costs this Christmas?