Worried about festive costs this Dec? Here’s how to spend and save smartly

Worried about festive costs this Dec? Here’s how to spend and save smartly over the festive season
 

It is December and certainly time to talk about preparing for the festive season.

Well, I am not talking about organising Christmas parties, planning for the Christmas meal, or preparing your shopping bag for all the offers!

I am talking about balancing the festive spends and your finances to have a strong head start into the new year!

It is quite common for people to feel horrible in Jan - (apart from the gloomy weather and short days!) feelings of regret and resentment hover around after having ‘spent a lot’ during December. 

Resentment of:

• Having spent a lot of your monthly earnings in Dec

• Having used your credit card for dec and hence having to nip into Jan earnings to fill the same

• Not being able to reach your savings goal in Nov and Dec – leaving you feeling financially depleted in Jan.

All this then gives you the impression that the only way you can make up for the above is by cutting down your expenses in the first quarter in the year – making it all the gloomier!

And this is a very unhealthy money pattern. 

But the beauty with money habits is that you have the power to change and every small change you make, takes you a long way! 

Before I talk about a change you can bring in 2026, for 2025 Dec I have a quick tip to be more conscious as you spend. Each time you think of making a spend:

• A – Asses the necessity. Is it something that will add value your life? 

• S – Scrutinise value. Is it worth the amount you are about to pay?

• K – Know your alternatives. Are there other options you are not aware of?

You will be amazed at how these simple questions can change how you spend your money while still not missing out on what matters to you.

Now back to the change in your money habit you can introduce in Jan 2026.

What change am I talking about?

Create a Festive savings!

Save a sum month on month, for an entire year, just for those Nov-Dec spendings. 

This has a couple of impacts – it gives you a chance to reflect on past years spending habits, allows you to understand yourself better and enables you to set a spending limit you think work best for you for the year end festive period. 

Benefits? Plenty!

• You put aside a small sum every month into an ISA allowing you to earn interest on it.

• When you do spend during Dec you are not digging into that month’s earnings, rather you have a dedicated pot for the festivities!

• You enjoy the festivities without guilt or fear!

• And if at all you end up spending less, you allow the money to accumulate in the pot year on year!

Another aspect of this exercise is it makes you look into what actually matters to you!

Does it matter to you to shop loads on offers day? Does it really matter to you to go to that neighbourhood Christmas party? Does it really matter to you to take your kids to Lap land?

I always say this, find your values. Your money, time and energy should be directed towards what really matters to you!

This will make you feel fulfilled as - You spend on things that enhance your quality of life and wellbeing and help you get rid of the guilt each time you spend! 

So, let us take this pledge for 2026 – Create a festive ISA pot and save as little as £50 a month. This small change can give you a good £600+ for your December festive spendings to spend guilt free! 

That is the power of money habits and the power of taking informed financial decisions.

Take control of money by getting informed and gaining knowledge!

Written by,
Mrudula Muralidharan
Founder and Finance Coach
Million Goals