With the end of the year rapidly closing in, many will start to feel the pinch from their Christmas expenditures. The festive season, while full of cheer, can also lead to financial woes that persist well into the new year.
However, according to Octopus Money’s money coach Mooka Maboshe, there’s a straightforward and effective strategy to make sure 2025 is your most financially savvy year yet—the key is to begin early and be proactive with your savings, specifically by establishing a “festive fund.”
So, what’s the advantage of a festive fund?
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The Christmas period can dangerously tilt your budget, particularly with extra outlays for pressies, nosh, and spontaneous festivities. It’s all too easy to splash out more than intended.
Yet, with some savvy foresight, you can sidestep the usual post-Yuletide rush and the allure of depending on credit cards or loans when December arrives. By kicking off a festive fund sooner rather than later, you’ll be set for the upcoming Yule tide without the financial squeeze, reports the Mirror.
How to kickstart your festive fund?
It’s pretty basic: squirrel away a modest sum monthly, beginning as soon as the new year chimes in. Even saving a tenner or £20 per month can bulk up to a tidy sum by the time Santa’s on his way.
Regularly earmarking this cash will help ensure you’re not caught off-guard by holiday expenses at the year’s end. Maboshe advises arranging an automatic transfer to your festive fund each payday, treating it with the same priority as any other essential outgoings.
Get ahead of next year’s festivities.
The earlier you start saving, the less stressful the holiday season becomes. Starting small means you won’t be scrambling to find cash in the run-up to Christmas.
Maboshe points out that even saving £15 per month can give you £180 by December-enough to cover gifts, food, or other seasonal expenses.
In addition to setting up a festive fund, it’s a good idea to review your overall spending habits throughout the year. Maboshe suggests going over your bank statements to see where your money is going and identifying areas to cut back.
Could you cancel subscriptions you no longer use?
Swap to a cheaper mobile plan?
Or reduce small daily expenses like takeaway coffee?
Saving money here can mean more for your holiday pots.
Christmas doesn’t need to leave you financially drained. By starting to save now, you’ll ensure a stress-free holiday season without the worry of overspending or being caught short in January.
Whether it’s £10 or £50 a month, the key is consistency.