Christmas is just weeks away. So many of us are already busy working out how much we can afford to spend on presents and what the food, alcohol and travel that go with the celebrations will cost. Here are four easy ways to save money without being branded a Scrooge.
Get the best credit card
Before you hit the shops to buy your presents, plan how you are going to pay for them. If you are lucky enough to already have the money in the bank to cover your Christmas costs, consider buying everything on a cashback credit card. The American Express Platinum card has the best deal. It pays 5% for the first three months up to a maximum of £100, then up to 1.25% after that.
If you don’t have the money to pay for all your Christmas expenses, then go for a credit card that offers 0% on purchases. The Tesco Clubcard credit card offers a 0% interest rate on purchases for 13 months. So you can spread the cost of Christmas without being hit for interest.
Make the most of vouchers
Now you know how you are going to pay for your purchases it’s time to head out and buy them. Cut your costs further by shopping online. By using websites such as Myvouchercodes.co.uk or Vouchercloud.com you can check whether there are any coupons you can use to reduce your bills in certain shops. For example, at the moment you can get 20% off Barratts Shoes, 10% off at Hotel Chocolat and 20% off at Habitat with vouchers at MyVoucherCodes.
Also keep an eye out for sales and instore deals. Several of the big department stores have ‘flash sales’ – sales that last for a day or two – in the run up to the big day. And the big supermarkets make some great offers on chocolates and other festive treats so keep your eyes peeled.
Trim your travel expenses
If you are planning to make a journey to visit family, book ahead to save yourself some money. Anyone taking the train should use websites to find the cheapest tickets – you can save up to 80% on the cost of buying the same ticket on the day. Raileasy and the Trainline are good but both charge a booking fee. Eastcoast.co.uk on the other hand offers a simple table to help you find the cheapest possible deal and won’t charge a booking fee. Also make sure you make the most of rail cards – if you are travelling with young children get a Family & Friends Railcard and save a third off your train tickets.
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Anyone planning to take Christmas journeys by car should visit Petrolprices.com. Once you’ve registered just tap in your postcode – and the postcode of your destination in case you need to fill up there – and it will tell you where to find the cheapest nearby petrol station. That’s particularly handy if you want to avoid the rip-off prices that motorway service stations charge.
Call overseas for free
About 40% of us make calls abroad on Christmas Day, says Simply Digital. And most of us pay over the odds. If you have a computer and an internet connection at home (and the person you want to call does too) then get yourself set-up with Skype. As well as making calls over the internet for free, using Voip (voice over internet protocol) you can make video calls anywhere in the world too provided you have the right kit.
If you don’t have the technology required to use Skype then try ‘override’ phone companies. You dial an access number, and once you are connected you dial the number of the person you want to talk to abroad. By calling the provider’s number first your call is routed through their telephone network and accesses their discounted rates. This can work out substantially cheaper. For example a typical call to Australia will cost you 27p a minute with BT. But by dialling the budgetcom.co.uk access number first you could pay just 0.5p a minute. You can find out the cheapest ‘override’ company for calling specific countries at moneysavingexpert.com.
Start saving for next year
With a little bit of planning you can make Christmas 2011 a stress-free experience. Save a little each month for 11 months and you won’t be facing nasty credit card bills after next Christmas. Many building societies launch Christmas saver accounts each January. You put aside some money each month and then around six weeks before Christmas the building society allows you access to your money so you can start shopping. This is a good idea if you don’t trust yourself not to dip into the money earlier but you may not earn the best rate on it.
If you know you won’t be tempted to spend the money early then a standard regular savings account will probably pay you more interest. For example, FirstDirect is offering a regular savings account which pays 8% interest on monthly amounts between £25 and £300. As the offer only lasts for 12 months it’s perfect for anyone saving for next Christmas. You do have to have a current account with First Direct to get the savings account, but given they also offer one of the best current accounts around, switching shouldn’t be a hardship.
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