Christmas might be a wonderful and magical time of the year, but it can also be extremely damaging to our finances. It can be too easy to get caught up in the whirlwind of spending, especially when you have gifts to purchase, parties to attend and other Christmas events that you cannot avoid. Anyhow, when Christmas is said and done, you don’t have to start the new year in a financial black hole because you can do things to help your finances recover and get back on track.
Of course, during the festive period, there are some expenses that are unexpected, which is where a loan can help. However, we have some tips below to help you get your finances better organised.
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Set a monthly budget
Budgeting is a great way to manage what you spend after the Christmas period. Set yourself a budget which includes your monthly bills and then make sure you stick to it. You might have to miss out on certain things, but you might be surprised to find that you can save money with some simple budgeting.
Cut back on your spending
January is known to be one of the most depressing months of the year because everyone feels deflated after the Christmas period. As a result, some might find they spend more to make themselves happy but now is the time to cut back on your spending if you want your finances to recover. You don’t have to live a life where you do nothing at all, but cutting back on extravagant purchases, meals out or even coffees can soon add up once you get to the end of the month.
Sell or return unwanted gifts
We all have gifts at Christmas that we know are not going to be used or don’t fit, so instead of leaving them to gather dust at home, why not turn them into cash? You can either return them to the store for a refund or sell them but either way, if you can get some cash back, you can put it into the bank and add it to your savings. You might be surprised at how much you can save by selling those unwanted gifts. Also, don’t worry about upsetting family or friends when selling or returning items because they are likely to be much happier knowing that their gift is helping you to put your finances back on track.
Organise your finances
January is also a great time to sit down and put your finances in order for the new year. It is quite surprising how much money we spend on things that we don’t need. You might have subscriptions, or you might be paying too much for insurance, so cut back on what you don’t need, shop around for cheaper deals and make sure you streamline your finances.
Start saving for next Christmas
As one Christmas has passed it can seem like absolute madness to begin thinking about the next one but trust us, your future self will thank you in 12 months’ time. By setting aside a little money each month, you will build up a pot that you can put to use when it comes to covering the cost of gifts and Christmas festivities. Whether it’s £20 or £100 a month, every little will help to cover the Christmas bills.
Christmas is an expensive time of year, and many costs are unavoidable. However, with some planning and budgeting you can make sure that you don’t face financial hardship. If you find that you have to cover an unexpected expense, a logbook loan, from a responsible lender, can most certainly help. Even better, you’ll still be able to drive your vehicle while you make the repayments.
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.