You can count on Money Saving Expert, Martin Lewis, to offer sensible, actionable advice when it comes to saving money - and his guidance when it comes to Christmas is worth making a note of.
Martin Lewis is a national treasure, whose dedication to saving the nation money knows no bounds. From the brilliant loophole for parents who want to leave kids money without paying inheritance tax, to the little known tax tip for grandparents gifting money to their grandkids, his sound advice helps millions. He's even petitioning for compulsory financial education for every child in schools, to ensure a nation of savvy money experts in the future.
As minds turn towards Christmas, Martin has once again stepped up to try and prevent a January filled with debt and regret. He offers simple advice to stop the dream of a 'perfect' Christmas stopping the public being pragmatic and sensible with their spending - which is easily done when you're caught up in the magic and have children that want the latest expensive items.
Speaking on BBC Radio 5 Live, the Money Saving Expert says "Now, forgive me for being all bah humbug about this but Christmas is a huge proportion of the year’s annual expenditure. The average person spends £800 on it, the average family... 800 quid a year. It's getting up there with a family holiday. Most people can’t afford that out of December’s income."
To prevent overspending, he urges people to consider the following in the run up to the big day:
- Don't make a Christmas 'lust list,' you'll only be disappointed. Martin says "One of the big mistakes many people make at Christmas is they, in their mind, come up with a lust list - what is the perfect Christmas. And if you come up with a lust list, for most people, that will either lead to one of two things: debt or disappointment because you won’t get it."
- Pre-plan throughout the year. We all know Christmas is coming - be mindful of it all year if you know it's going to be expensive. Martin adds "You need to do some pre-planning. Christmas this year will be on the 25th of December, note that down it’s not unexpected…but when I come into January, January is the biggest time for all the debt counselling agencies and when you talk to people about why they’ve gone then, they say 'Christmas, of course.'
- Make a budget and stick to it. There's no point having a miserable time after Christmas, full of money worries and woes, for the sake of one day. Martin suggests putting together a tight budget based on what you can actually afford, and basing your 'lust list' strictly on that budget.
- Don't be sucked in by social media. It's easy to go online and see perfectly decorated trees surrounded by hordes of presents - but nobody is under any pressure to recreate that themselves. Christmas isn't about keeping up with what everyone else is doing, and showy pictures of unreachable expectations can easily push others into spending too much. Martin urges people not to fall for it.
Mum-of-three, Shelley, says "We used to overspend on Christmas and really regret it. It really is so easy to get caught up in the idea of the perfect day. Now, I keep an eye out for sales throughout the year, and buy anything that's massively reduced that someone in the family would like, and put it away for Christmas.
We also communicate better with the wider family now. I used to be really bad at saying we didn't have enough money for gifts, but now we have a discussion about it early and make decisions based on what everyone can afford. Last year we all decided to give small gifts for the adults because we could. Some of us aren't financially sound this year, so we've decided not to do that and just focus on what we can afford for the children."
For more on how to save money, we share 13 good money habits all parents should adopt, and how to save money shopping at Amazon.
