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5 ways to avoid overspending at Christmas

5 ways to avoid overspending at Christmas

Published at 9:00am 17th December 2019.

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BDB Financial

It's no secret that Christmas overspending is common in the UK with £26.9 BILLION expected to be spent this year. But how can we avoid those hefty bills?

  • The average adult in the UK will spend £512 on gifts this Christmas.
  • This means that the UK will spend £26.9 billion collectively this year.
  • Local financial planners BDB Financial have given 5 helpful tips to prevent overspending. 

The latest statistics from Finder UK have revealed the shocking truth behind Christmas spending in the UK, with Brits expected to spend almost £27 billion on gifts ALONE.

With Christmas fast approaching, what can we do to prevent racking up even bigger bills from our Christmas shopping?

We've got five useful tips from financial expert Andrew Brook-Dobson, the Managing Director at BDB Financial in Harrogate:

1. Have a budget

"The absolute biggest tip has got to be about having a budget." - Andrew Brook-Dobson, BDB Financial

One of the most important things that you can do to save money on Christmas gifts is to draw up a budget and stick to it when buying for other people.

Work out how much you can afford to spend and budget accordingly - this can also prevent you from going overboard on the amount of gifts for one person!

Budgeting at Christmas time, BDB Financial
Andrew at BDB explains the importance of drawing up a Christmas gift budget - and sticking to it!

2. Plan for next Christmas

Often people look ahead to Summer holidays early in the year and begin saving, so why not for Christmas?

Andrew explains how looking at previous Christmas spending can help plan for the future:

"A lot of people tend to be quite 'short-termist', it's not that they plan to fail, they just fail to plan. Work out what you've spent this Christmas and then put a savings plan in place."

Sitting down in January and planning spending for the year can be a great way to avoid overspending.

Planning for next Christmas, BDB Financial
Often we financially plan for a Summer holiday, but why not for Christmas?

3. Spend within your means

Again planning and budgeting is key, as it can help you work out what you can afford to spend.

In a world of credit cards and contactless transactions, it's easy to spend money you don't have. 

"My biggest concern is when people spend beyond their means and it all goes on their credit card.

"The third Monday of every January is 'Blue Monday', apparently the most depressing day of the year. One of the main factors is that's when the Christmas credit card bill comes in!"

Andrew Brook-Dobson, BDB Financial

Credit card, budgeting at Christmas time
In a world of credit cards and contactless payments, it's easy to spend beyond your means.

4. Think about your gifts

It's easy to look at the amount spent on a loved one rather than sentimental value - but thinking about each present could be a good way to save money!

Hand-made and thoughtful presents can go a lot further than simply buying something because of a hefty price tag.

"Expectations are going up, what people want to deliver to themselves and others is going up and in lot of cases that isn't particularly affordable.

Andrew Brook-Dobson, BDB Financial

Budgeting at Christmas, BDB Financial
Handmade Christmas gifts can mean a lot more to the recipient - and cost a lot less!

5. Avoid presents 'for the sake of giving'

Often some smaller presents are bought for the sake of buying a present (or to ensure you've bought the same amount of presents for each child!) and beyond Christmas can go unused.

Avoid buying that one extra gift that might end up in a cupboard by January and make some Christmas savings.

"At Christmas time we tend to see a lot of presents for the sake of giving as opposed to things that are thoughtful."

Andrew Brook-Dobson, BDB Financial

Christmas gifts
Some smaller gifts, such as stocking-fillers, are bought for the sake of buying gifts and end up in a cupboard (or the bin!) by January.

To get in touch with BDB Financial and find out how they can help you, find them online, on Facebook or give them a call on 01423 855680.

Ben Groom from Stray Lifestyle spoke to Managing Director at BDB Financial Andrew Brook-Dobson for more on how to avoid overspending at Christmas:

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