Six Christmas budgeting tips to stop you overspending during cost of living crisis
05.12.2022 - 18:13
/ dailyrecord.co.uk
The festive season is rapidly approaching and as we enter the first full week of December many households will be starting to plan their spending over Christmas and New Year while taking into account the ongoing cost of living crisis which is having a huge impact on the prices of everyday food items at the supermarket.
According to the latest data, 39 per cent of people across the UK plan to spend much less on Christmas than in previous years, reducing socialising and travelling during the festive fortnight compared to 2021. Independent finance broker, Norton Finance, estimates that 16 per cent of December spending goes towards food, 19 per cent on seasonal decorations and 65 per cent on gifts.
With such a large percentage of spending going towards buying presents for loved ones, friends, neighbours and work colleagues, Norton Finance has created a budgeting guide to help everyone tackle this traditionally expensive period.
Norton Finance recommends taking a realistic look at your financial situation and establishing an amount you will be comfortable increasing your spending by.
Paul Stringer of Norton Finance explains: “Most of us increase our spending for Christmas, but it’s best not to be too drastic. By aiming for modest increases of 15% or less, you can still give yourself flexibility for the festive season without limiting other areas of spending.
“If you don’t have savings set aside and need to borrow to meet the extra costs, it’s important to decide at the outset what you think you can afford, and how long you’re prepared to take to make any repayments.”
Treat yourself like your own business. Regularly reviewing your finances will help you stay on track with expenses. If it looks like you may go over budget, make