Cooper Associates Mortgages understand that between gifts, food, travelling and hosting, Christmas can be an expensive time that makes saving seem impossible.
Fortunately, with the right strategies and a thought-out financial plan, your can keep working towards your savings goals without sacrificing the magic of the festive season.
1) Start with a budget
The first step to post-Christmas financial freedom is to create an honest, detailed budget. Creating a budget is easy, and can be broken down into three simple steps:
– List all holiday expenses: Make a list of all expected expenditures over the Christmas, including gifts, decorations, food, travel, charitable giving etc.
– Set spending limits: Ensure that each category has a cap on spending and ensure that you stick to that amount.
– Prioritise saving: Include your deposit fund in your budget and flag it as a key item. Do not be tempted to reduce your standard deposit saving amount to cover other areas.
2) Shop smart and take advantage of pre-Christmas sales
Christmas is a time of sales and promotions that you can take advantage of. Make the most of them, and don’t fall into the trap of spending more simply because you saved money in a sale.
– Plan ahead: Make a list of the essential items you have to buy ahead of time and stick to it. Try to avoid getting drawn in to unnecessary purchases which may push you over budget.
– Save more with cashback: Some credit cards offer cashback on purchases. This can be a useful way to earn back a percentage of what you spend on your festive shop. Consider using this additional saving to boost the amount you put aside for your house deposit.
3) Cut back on festive non-essentials
Making small changes to your standard traditions can make a big impact when it comes to the amount you are able to save this season.
– Consider swapping the big trips to Christmas markets in favour of local markets, light displays and carol concerts.
– Hosting a dinner party can result in an expensive food bill. Suggesting that you guests all bring their own dish to the dinner party can help you save and add to the festive fun.
– Swap shop-bought festive drinks and snacks for home-made alternatives. You’ll likely find that you can make more than you can buy.
4) Open a dedicated savings account
Many people use the “pots” built into their banking app to save for large event. While this may be a convenient way to put money aside, it is also a convenient way to move money back into your everyday spending account.
Consider opening a dedicated savings account, putting money out of reach to avoid the temptation of topping up to spend over budget.
– Automate your savings: Schedule a regularly monthly transfer to your savings account to avoid forgetting to save.
– Deposit extra income: Place at least the majority of any Christmas bonuses or monetary gifts directly into this account to boost your savings.
5) Stay focussed on the bigger picture
It’s easy to get wrapped up in the excitement of the holiday season, but it is important to remember your long-term goals. While Christmas is a magical time of year, moving into your new home is a momentous milestone in life.
Remember throughout Christmas that any money you are able to save, no matter how small, brings you one step closer to owning your dream home.
We understand that saving can be a challenge, but we are here to help. At Cooper Associates Group, we are proud to offer holistic financial services to our clients, including both mortgages and wealth management.
Click here to get in touch today and find out how Cooper Associates Mortgages can make your homebuying dreams a reality.
