The Guide Top Ten: Make every penny count towards a fun and affordable Christmas

Published on Wednesday 1 December 2010 20:27

Many people will be anxious about the cost of Christmas this year, particularly those who are unemployed or who have serious concerns about their job security.

For many people it makes sense to be very cautious and not overspend, but how can you do that while still having fun?

Gavin Littlejohn, chief executive of Moneydashboard.com, offers his top tips on enjoying thrifty Christmas without feeling like a scrooge.

1 Prioritise

Save money by making Christmas about the children and only buying gifts for them.

2 Gift amnesty

Agree with your friends to bypass the usual gift exchanges - in this climate it might be a relief to everyone. You could divert some of the cash you save into a slap-up meal and party instead, or even make a donation to a charity to keep up the festive spirit.

Alternatively, cut back on the amount you have to spend by agreeing spending limits.

3 Use the web

The internet can help you search for gift ideas in the right price range. Websites including like iwantoneofthose.com, boots.com and buyagift.co.uk let you search between narrow price bands.

It's much easier and cheaper than a trip into town. Or why not sign up to discount sites like groupon.co.uk, itison.com and livingsocial.com which run substantial daily discounts on gift experiences and much more.

4 Give yourself time

If you're shopping online, leave enough time to take advantage of free or cheap delivery options and still allow for delays. It's tempting to hold off for pre-Christmas sales, but don't leave your shopping too late - stocks can run out and items you order online might not arrive on time, so you could find yourself heading to the high street to panic-buy a replacement gift.

5 Plan ahead

Set a budget and do your best to stay within it. If you're spending on your credit card, then the best time to shop is just after your bill cut-off date - that gives you as long as possible to pay off the debt without interest penalties. But if you're planning to shop online, weigh up delaying the start of your Christmas shopping with the risk of gifts not arriving on time and the extra cost of express delivery

6 Stay safe online

There are two key features to look out for to ensure any site's payment processing system is secure: a padlock in the browser window to signify that the site has a security certificate and an address that starts https:// rather than the usual http://.

Both of these mean the site is secure. But to make sure, double click the padlock and look at the security certificate for the site, which should be displayed. If you ever get a warning that the address of the site does not match the certificate, stop right away.

Be careful with Christmas promotional emails, too. You can't just assume that a link in one takes you to the genuine site. Enter the web address yourself, saving it to your favourites and always clicking on these links instead.

7 Price comparison

If you prefer to shop on the high street and have an iPhone, use a barcode scanner application like RedLaser to quickly see where the gift you're looking for is sold at the cheapest price.

8 Get creative

Save money by making cards and gifts instead of buying them. It's even easier now with so many ideas online and if food is your thing, then deliciousmagazine.co.uk is a great starting point. But add up the cost of all your ingredients and make sure it really is cost-effective.

9 Spread the spread

Share the cost of cooking the Christmas meal between friends and family. You'll probably find people like to be involved, so plan who is bringing what, even down to the Christmas crackers.

10 Christmas trips

If you're heading off for a break with family and friends don't forget to book your Christmas travel well in advance and have travel insurance in place, in case the bad weather causes chaos. Leave some heating on while you're away and make sure your home is adequately insured, too. That way even if the bad weather causes a burst pipe, Christmas won't cost even more than you bargained for either.