5 saving tips for next Christmas

When it comes to making savings, knowing precisely where you stand financially is the best place to start. Make a thorough list of your income and expenses, and make sure you don’t leave anything out.

Write down your essential fixed expenses, such as:

• Rent or mortgage
• Utility bills
• Council tax
• Insurance (car, home, travel etc.)
• Travel costs, including the cost of running a car
• Loan or credit card repayments
• Memberships and subscriptions

Also, try to get a realistic idea of other variable expenses, such as grocery shopping, clothes, entertainment and going out. A good way for getting an accurate idea of how much you’re spending each month is by checking recent statements.

Knowing exactly what you’re spending will make it easier to identify where savings can be made.

When you have a clear picture of your expenses, it’s time to reduce some of these costs.

You could start with small-scale changes, like buying some of your clothing second-hand, or finding a better deal on your mobile contract. 

Using comparison sites to get better deals on your insurance and utility bills can also lead to good savings, especially if you have a thorough shake-up.

Find out more about changing your household bills.

You could also try sharing apps such as Olio, which aim to reduce food wastage, and can be useful for picking up items when others are having a clear-out.

For more handy household tips, check out these 15 ways to save money at home.

As is often the case, starting something can be the hardest part. But getting into the swing of making savings regularly and often is the best way to ensure it pays off.

So why not try to get in the habit of having a ‘savings day’ each month? You can make a monthly budget, and work out ways to boost your finances.

To help would-be savers, Principality has launched the Christmas 2023 Regular Saver Bond. You can open this festive savings pot for just £1 online, or in a branch, and pay in up to £125 per month.

The weekly grocery shop is among the biggest household expenses, so it deserves special attention.

Planning is the key here. Set a budget for your weekly shopping and plan your meals in advance. Knowing what you’re eating each day is a surprisingly effective money-saver – not least because you don’t find yourself finishing work for the day, panicking about what to have, and throwing money at the problem.

Likewise, always write a shopping list and stick to it. Plan where you shop with  your budget in mind. Certain supermarkets have better value staples, for instance, whereas others may have better yellow-stickered discounts.

Batch cooking is another way of making your money go further in the kitchen. Certain meals are better after being in the fridge for a few days – such as stews and bolognese – so put that tupperware to good use. Even if you’re not batch cooking, always make enough for lunchtime leftovers.

Scrimping and saving is all well and good… But it’s also well worth thinking about how to bring more money in.

This could involve taking on more work, such as overtime if it’s available. Or maybe it’s time to ask for that overdue promotion?

Alternatively, you might want to try your hand at setting up a side business. Are you good at fixing things? Or decorating cakes? You could turn something you’re good at – and that you enjoy – into a modest money-spinner.

You could also have a clear-out. Selling unwanted clothes and other items on eBay or Gumtree could help raise some extra cash. Be ruthless though… If you’ve not worn something for 12 months, perhaps it’s time to get rid of it.