Five Steps To Stay On Top Of Christmas Spending

The pundits are predicting 2009 will be a tough year financially, with the global economy slowing and markets struggling. Credit card debt is expected to go up, and the average level of debt in the UK is already £33,000.

If you don’t want to be caught in that spiral then take charge of your finances now – don’t wait until the New Year. Get started with your Christmas spending – after all this is the most expensive time of the year for most people.

My five-step plan below will help you to ensure you don’t go overboard this year, but DO still have a fab Christmas.

1. Make a plan

Sit down with a nice glass (or mug) of something, put on some great Christmas music, and make a list.

Decide what you want to spend and include a couple of ”spare” presents for those last minute guests. Resolve now not to exceed this amount. In fact, why not challenge yourself to come in under your budget, and have a treat for you too!

2. Avoid the High Street

On-line shopping is great. You can buy pretty much anything these days, and have it delivered to your home or office.

It’s easy, convenient, low stress – and you are less likely to get seduced into spending more money by glitzy shop displays, and oh so helpful assistants.

Did you know you could even do your bit for charity at the same time, by accessing your favourite shopping sites via a portal like www.giveortake.com? Check it out.

3. If you do hit the high street, use cash, and leave your cards at home

All the research shows it is psychologically far easier to over-spend using cards.

It’s easy to get carried away and start taking advantage of all those 3 for 2 specials… even when you only want one of them.

It’s much more real when you have to hand over your hard earned £20 notes, so do yourself a favour and take out only the amount you have budgeted.

4. Avoid leaving your shopping until the last minute

That’s when you get into panic mode, and start chucking more and more money away. You do not want to be in Selfridges (or any other shop) on Christmas Eve – you want to be relaxing and oozing Christmas spirit.

Do it now. Then you can relax and have fun with the wrapping, not to mention enjoying that smug feeling of knowing you’ve done it all.

5. Think laterally

Be creative – can you  buy something different from the run of the mill?

Have a look at farmers markets, garden centres, local activity centres,   charity catalogues – do you know someone who’d like a herd of goats for Christmas, or a star named after them? What about a day bellboating?

How about a theme this year, eg. everyone gets something foodie, or buy the same present for most people on your list – there’s no rule saying they all have to be different.

And finally – keep your receipts! Have you stayed within budget? Well done you.

Add everything up (gulp!). Now take the full amount, divide it by 11, and resolve to put that amount into your Christmas account as soon you get paid each month. That way, you’ll have next year sewn up too…

Happy Christmas!