How to ease Christmas spending stress

Yes, I’m calling it. It’s time to talk Christmas. Because the biggest spending season of the year is less than 100 days away – and consumer confidence in the UK is down, according to new research.

It’s a recipe for stress. So let’s alleviate this by using the time we still have to make a plan.

Here’s how to ease Christmas spending stress and start the new year without a festive financial hangover.

I’m a money coach – of course I talk about “mindful” spending (I can feel you rolling your eyes, but hear me out).

Mindful spending is where you’re conscious of what you buy and intentional with how you spend your money.

A spending plan is simply another term for a budget. Whichever term you prefer, it’s your estimate of how much money you have coming in, less how much money you have going out, over a period of time.

A mindful spending plan helps you take control of where your money is going instead of feeling like it does a disappearing act. Here’s how.

Step 1: Work out how much money you have coming in between now and Christmas.

Step 2: Work out how much money you have going out. To do this, list your fixed/essential spending (things like your mortgage repayments/rent, bills, food shop, travel, etc). Then list your discretionary/lifestyle spending (such as meals out, socialising, entertainment, clothing, and so on). Estimates are fine.

Step 3: Deduct your outgoings from your income. How much do you have left? If there’s money left, this is what you could spend on Christmas gifts, food, decorations, etc.

Step 4: Decide how much you want to spend on Christmas. Review how much you spent on Christmas last year and ask yourself: Do I want to spend the same or less or more this year? What does my budget allow me to spend?

Remember, how much you spend on gifts for someone isn’t an indication of how much you love them. Let’s avoid the trap of equating the cost or size of gifts with love.

There are many ways to express love and care, such as giving someone the gift of your time. This could look like setting a date to do a no- or low-cost activity with the children, or babysitting for friends so they can have a night out.

Yes, I’m a money coach. No, I’m not anti-spending. I’m pro-spending money you can afford on the things that matter to you, and enjoying every purchase without guilt, shame or regret.

Once you know what you’d like to buy, the next step is to research where to buy. The aim here is to make the most of any offers available to make the money you’re already planning to spend go further.

Black Friday falls on 29 November this year, but many retailers offer an extended Black Friday period. Many brands are set to take part, from Amazon to Zara. If you plan your spending in advance, this can be a good time to save money on bigger spends such as electrical appliances, toys and games.

From Tesco Clubcard to Sainsbury’s Nectar points, most supermarkets are now reserving their best discounts for loyalty card members so it pays to sign up.

You can make a saving when you buy pre-loved, whether that’s at your local charity shop or online sites such as Vinted and eBay. If shopping online, search “BNWT” – Brand New With Tags – to search for second-hand but unused items.

Sites like Quidco and Top Cashback will pay you if you shop online via them instead of going direct to the retailer’s website. Savings range from pennies to pounds.

Are you or your other half an NHS worker, social care staff, students, etc? If so, you’ll find discounts at a range of retailers.

I have my cousin, mother to two boys aged two and five, to thank for this tip. It’s a great one for parents. You buy your child something they want, something they need, something to wear and something to read.

For example, my cousin’s two-year-old loves Mickey Mouse. Last year she bought him a Mickey Mouse toy (want), Mickey Mouse bedding (need), Mickey Mouse pyjamas (wear) and Mickey Mouse book (read).

Financial wellbeing is the sense of security and ease that comes with knowing you can pay your bills today, deal with the unexpected and that you’re on track for a healthy financial future.

While money worries go down as income goes up, financial wellbeing is not only a low-income problem. If you have more going out than you have coming in, then money is always going to be a problem at some point.

Whatever your income, if you’re struggling to cover your basic monthly outgoings including mortgage/rent, bills, food shop, minimum credit card repayments, that’s a sign to seek help. The financial guidance website MoneyHelper has a debt advice locator which lists where you can access free debt advice.

Talia Loderick is a money coach who helps people to understand and take control of their finances. Her website can be found here