With over 100 days until the festive holiday, many of us may have the cost of Christmas far from the forefront of our minds. But financial experts told The Irish Mirror that now is really the best time to start saving for the holiday.
Financial planners and money experts Paul Merriman and Kel Galavan gave their top tips for preparing for Christmas 2021.
Founder of the Askpaul financial advisory service Paul Merriman says that he hears how Christmas “snuck up” on us year after year, with many people across the country finding themselves overwhelmed every December by the huge task of organising a Christmas that doesn’t break the bank.
With thousands of Irish people going into debt, taking out credit cards and overdrafts around the festive period, maybe this year you should give yourself the best Christmas present of all - a hassle-free holiday season.
Christmas “comes around at the same time every year and you have twelve months to plan for it,” says Paul.
With three months left to plan out the festive period, Paul says that early preparation is the key for “anyone looking to survive Christmas” and the best way to avoid the dreaded January money struggle.
Especially since some of us get paid early in December and may be without a pay check for weeks into the New Year, Paul acknowledges that planning out your planned income and spending is essential.
He said: “You really want to be doing the Santa Claus thing, making a list and checking it twice."
Now is the time to make your Christmas list, what you’re going to buy, what you’re going to spend, and a plan for who you’re buying gifts for this year.
For social media money sensation Kel Galavan aka Mrs Smart Money, the key to Christmas is to start saving now.
“The earlier you start the easier it will be,” she tells The Irish Mirror.
Kel recommends starting a “sinking fund” in order to save up for the big Christmas spend - putting extra cash into a separate savings account, a Revolut vault or even a physical envelope and not touching it until you do your Christmas shopping.
“There’s 16 weeks to Christmas, and let’s just say Christmas costs you an extra €1,600. That means putting aside an extra €100 a week,” she explains.
Sounds daunting, but Mrs Smart Money has more tips to try out if you’re looking for a hassle-free festive period.
She suggests trying out a monthly ban on something you are guilty of spending too much money treating yourself with. Kel says to try cutting out takeaways, clothes shopping or buying a coffee everyday for a month.
Instead of spending €50 a week on coffees before work and takeaway dinners at the weekend, put that €50 into your sinking fund where you can see your Christmas savings grow and grow.
Even holding yourself back from spending small amounts of money will be effective.
“You’d be surprised how all those little bits add up,” she says.
“Have a little screensaver on your phone or desktop of a little Christmas tree to remind you, ‘do you want to spend €3.50 on a coffee or do you want to put it into your Christmas funds for some really nice presents?,” she suggests.
Even if your Christmas sinking fund doesn’t cover all your festive spend, at least you’ll have a good chunk of your holiday expenses covered.
The biggest benefit to saving up for Christmas yourself rather than relying on a holiday loan? "It’s a way cheaper way to do it and you’re not as vulnerable,” says Kel.
But for families across the country, surviving Christmas without some backup of cash from a money lender can be equally as daunting as trying to save up enough for an enjoyable Christmas alone.
Paul says he understands why people may turn to loans for Christmas year after year.
He adds: “The only reason, generally speaking, for loans is that I think it’s very hard for people that have children and they mightn’t have the financial backing to be able to… give the children the Xbox or Playstation or whatever it is.
“It can be a very difficult situation,” he acknowledges, but explains that that is why it is so important to start planning and saving early.
When it comes to taking out a last minute loan before Christmas, Paul urges us “just don’t do it, just stop it this year.”
In order to survive without any financial debt, “the plan for Christmas has to be quite robust and quite strict,” he says.
Paul advises shopping online with a list by your side to keep you on track and not overspend.
“Don’t go into town and into all the different shops, you’ll just end up spending more,” Paul explains.
“At least if you’re going online to buy 10 presents with a €50 budget per present, it’s easier to stay on track."
Paul also suggests to start as early as you can. Even buying one present per week from now until Christmas is a steady way to “ease the stress and ease the financial burden,” as we creep closer to the festive season.
Both financial experts reminded us of how hard these past two years have been living with Covid-19 in Ireland, physically, emotionally and financially. Many of us were separated from our families last Christmas and lots of us lost significant amount of our incomes due to business closures and restrictions.
While missing out on valuable time and the excitement of finally being able to spend the holidays together may drive us to dig deep into our pockets and shower our loved ones with as many gifts and goodies as we can afford, Paul and Kel both had a similar message to anyone worrying about paying for Christmas after a tough financial period.
After two years separated from our families and friends Kel suggests spending time with your loved ones and offering experiences as presents instead of focussing on material possessions.
“Instead of doing a great big present swap, say ‘look, we’ll just spend time together,”
“Have a day out or go see Santa as a group... You’re getting the best of both worlds: you’re getting time together and making memories,” as well as being easier on the financial side of things too.
Paul said that for people across the country “It’s been such a challenge,”
“This could be the first year people have done it (meeting up with family and friends) in two years.”
“We’ve all learned from Covid-19 that money doesn’t do anything, it doesn't matter how much you have in the bank account,”
“Hopefully people will feel it this year,” he said, that enjoying Christmas and getting time to relax and feel a bit more normal is far more important than spending big money this Christmastime.
