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Rising inflation and the cost of living crisis might have us all rethinking our spending habits. However, none of this is expected to deter consumers too much come Christmas. Irish consumers are expected to spend a combined €5.39 billion this December, averaging out at around €978 per household. Worried that your seasonal spending is going to leave your bank account in the red? We've put together some handy tips to help you save this festive period.
Set Spending Limits
Just as with your weekly grocery shop, creating a budget will ensure you're not overspending this Christmas. You can of course give yourself some wriggle room, allowing for minor overspending if you happen upon the perfect gift for someone special. However, don't be tempted to do this for every recipient on your Christmas list.
Furthermore, make sure you're keeping an accurate record of what you're spending. This can be as simple as keeping it jotted down on your phone in a notebook. If you use online making, see what spending limit features your bank offers. This way, you'll know exactly how much all those Christmas gift sets are costing you. Are contactless payments making it easier for you to overspend? Think about capping your contactless transaction limit so you're forced to twice before reaching for your payment card.
Are You Being Too Generous?
Nobody should dish out presents with the anticipation of receiving a gift in return. However, now might be the time to be realistic about how generous you're being at Christmas. If money is tight, it's time to rein in your seasonal spending and stop making grand gestures. If someone you regularly buy Christmas gifts for someone who never pays you a moment's thought at this time of the year, it's time to scrub them from your shopping list.
It's also worth reconsidering who you're buying for. It's fine to splash out on immediate family and close friends, but do you really need to be buying for colleagues, cousins and your extended social circle? Be upfront with family members and suggest you all save money by not buying for each other this year. Alternatively, limit your spending to a single family-friendly gift that parents and kids alike can enjoy.
Preloved Presents
There's a tendency to buy brand new at Christmas, but the rise of online marketplaces has increased consumer appetites for pre-loved items. At Christmas, consider heading online or scouring charity shops for low-cost bargains. Designer fashion and refurbished electronics goods will be much more affordable second-hand than if you were buying them new. In fact, you don't even need to look very hard to enjoy big discounts on preloved products. Many high street retailers now offer refurbished stock alongside full-price items.
Provided you're purchasing your items early enough, you'll have plenty of time to determine quality before getting around to wrapping. If you're buying used goods online and you're not happy with the results, you should still be able to return them for a full refund.
Online Shopping isn't Always Cheaper
Online shopping is second nature to most of us nowadays. While it can be convenient and yield big discounts, it's not as cost-effective as you might think, especially during the festive season.
Many retailers will hike the prices of basic goods, meaning you'll be paying over the odds if you've left your shopping until the last minute. Furthermore, most retailers will charge a small premium for last-minute deliveries. This can eat into any savings you've made from avoiding the high street.
Finding a delivery slot in December can also be difficult. If you need to rearrange your schedule to be at home to sign for a delivery, you need to ask yourself whether or not online shopping is really all that convenient. If you're buying online at Christmas, consider signing up for premium subscriptions like Amazon Prime that offer free delivery as standard on most orders.
Don't Be Duped by Black Friday Fever
Black Friday and Cyber Monday have become synonymous with pre-Christmas shopping in recent years. However, these annual sales events don't always yield the huge discounts you might expect.
To make sure you're not paying more than you need to, use online price trackers to determine which retailers are offering the best deals. What's more, most retailers will be upfront about any savings you'll be making. Look to see what the previous ticket price was for an item before deciding on whether or not to buy.
Finally, don't rush into a purchase thinking you're making a once-in-a-lifetime saving. If a retailer has knocked a substantial amount off the RRP, they're likely to do so again.
We all go a little crazy at Christmas, but there's no reason to drain your bank balance in the process. To ensure you have sufficient funds in place come the New Year, simply make a plan, track your spending and be prepared to make a few compromises.
