Talking about finances can be hard – many people keep it secret and do not let on when they are struggling. Setting yourself a goal to have your finances in a better place will help to motivate you.

With 2 months to go until the big day, Christmas is a good landmark for getting everything sorted. Here are some tips to get you started.

Christmas: A time of giving

Christmas is a time of indulgence. In fact, Brits spent an average of £642 on Christmas in 2022. Roughly £300 went on gifts, £100 on food and £100 on socialising. In the survey, 25% of people said that they struggle to enjoy the festive period as they are worrying about the cost.

However, 34% said that they started saving earlier in the year to afford presents, and a further 41% dipped into existing savings pots to afford everything they wanted.

Although Christmas is a time to indulge, it doesn’t have to be at the expense of your financial stability.

Why understanding your finances before Christmas is important

Understanding your finances is important as a rule. However, it is even more important when there is a big event coming up that you will spend a lot on like Christmas.

Sit down and create a spreadsheet of your incoming money and outgoings, such as bills and repayments. By seeing it all laid out, you will be able to see everything clearly. You may even be able to end some unnecessary payments such as multiple streaming services. Whilst you won’t save loads, every little bit helps and you could put it towards paying off some debts. If you are struggling with your finances and have a bad credit score, then debt consolidation loans could be an option for you. Essentially, you would use the loan to pay off existing debts and have one monthly payment to pay off the balance rather than multiple payments which can be hard to keep track of.

Create a Christmas budget

Once you have a clearer picture of your finances, create a Christmas budget. Depending on the size of your family and whether you are hosting or not, you can allocate a set amount for food, presents, decorations and other expenses.

When it comes to presents, shop around for deals. By being prepared and starting now, you avoid the stress of last-minute shopping, as well as potentially paying more for shipping to ensure your gifts arrive by the big day.

You may also be able to find some great bargains in your local charity shop. They often have Christmas sections in advance with unopened presents and decorations. You will still be able to treat the ones you love but on a budget. If you are able to spend less than you budgeted for on presents and decorations, then you may be able to spend a bit more on food or a new outfit for yourself.