How to enjoy a budget-friendly Christmas (without being a Grinch)

This year has been financially tough for many, and although we'd all like to celebrate getting to the end of it, there's no need to land yourself in debt or blow hard-earned savings in the process. Here are eight ways to stay on top of your finances throughout the festivities. By Victoria Harris

Ah, Christmas. That magical time of year filled with joy, twinkling lights and, if you’re not careful, endless spending.

While the season is supposed to be about love, family and all the beautiful things money can’t buy, it often turns into a financial stress-fest that leaves many of us dreading January’s credit card bill.

Particularly this year, when many of us have already maxed-out our resources, due to job loss, high interest rates and the high cost-of-living, it pays to take a deep breath before December and remind yourself of the many ways you can still embrace Christmas without losing control of your finances.

Here are eight ways to help you do that:

Yes we all roll our eyes when shops drag out the Michael Bublé and crowd their windows with frosted snowflakes in October. But when it comes to buying Christmas presents “early” is a smart financial move. It also gives you time to shop around for the best deals, spread out the cost over a few pay days, and avoid those expensive express shipping fees.

Ideally you’ll start months in advance (I like to start thinking about gifts from Labour Day) but even now, with just one month to go, you can avoid last-minute price hikes and take advantage of sales like this week’s Black Friday. Starting this week will definitely reduce the financial burden – and stress! – of leaving it all to December 22.

I’m not naive, but sometimes I’m forgetful. I forget that social media is not real life. So when I see people posting perfect holiday scenes – Martha Stewart-worthy table decorations, fancy dinner outfits, and luxury gifts – it’s hard not to feel envy and start upping my own expectations of myself and the season. But remember, those Instagram influencers aren’t always living the life they’re posting about – and even if they are, you do you. Don’t fall into the trap of thinking you need a new dress for the cocktail party or a sea of presents beneath your tree, just because everyone else seems to be splurging. Be smart. Dust off last year’s party dress. And remember what Christmas is actually about.

One of the main benefits of Christmas is to spend time with loved ones Yet, “loved ones” can often extend to a rogue cousin you’ve never met, a neighbour you’ve said hi to a few times or your brother's new girlfriend (who will probably be a different girl next year). Instead of stressing about finding (and paying for) the perfect gift for everyone sharing your Christmas Day, I suggest doing a Secret Santa. That way, each person only has to buy one thoughtful gift with an agreed price limit, and everyone still gets something special. This approach has long been the approach of groups of friends and colleagues, but I suggest it works just as well with family – and there are several sites and apps such as drawnames.co.nz and elfster.com to help you organise it swiftly and seamlessly.

If you have a group of friends or a club that likes to get together every December, suggest drinks and nibbles or a shared dinner at one of your homes instead of in a bar or restaurant. It won't just be the expensive wine and food you save on but Ubers, parking, the pressure to dress up... Plus celebrating at home is cosier and often more fun.

If you’re a creative visual type, Christmas brings a trillion potential seductions: priceless decorations, lavish ribbons, fancy wrapping paper, the above mentioned Martha Stewart-worthy tables... But (I can’t stress this enough) the spirit of Christmas isn’t about perfectly curated décor any more than it’s about expensive presents. This year, try getting creative. DIY decorations can be a fun activity with family or friends, and using brown kraft paper or old newspaper for gift wrap adds a charming, eco-friendly touch. Wrap some fairy lights around a bare branch for a chic (and cheap) Christmas tree and check out the plethora of clever craft accounts to follow on Instagram (and maybe unfollow a few of the ones toting designer handbags while you’re at it).

New relationships at Christmas time can be tricky. Trust me, I’m currently in one! You’re happy, you’re in love, and you have no financial history together to guide your behaviour so you keep asking, “Should I spend $50 or splurge on something closer to $500?” Here’s a tip: focus on the sentiment behind the gift, not the price tag. Something small, thoughtful, and meaningful will go a long way to showing your new partner you care, without breaking the bank. Consider a personalised gift, like a handwritten letter, a framed photo of a special moment, or a cosy dinner date at home. And don’t be afraid to be upfront about the fact that you’re saving money and would like both of you to take an “non-material” approach to Christmas this year. True love requires honesty (and your new partner will probably be delighted).

I know there is A LOT of pressure to travel long distances to be with family on Christmas Day and this can cost a small fortune. I live in London and my family lives in New Zealand – you don’t much more expensive than that! Let’s face it: flights, petrol, time off work and accommodation costs can result in Christmas wiping out an entire year’s savings. Instead, tout the idea of celebrating together at a different, less expensive time of year when flights and hotels are cheaper. There's nothing to stop you doing the full turkey-and-trifle deal in June or July. Your family will still appreciate the quality time with you – minus the financial anxiety.

Finally, if you had to fake excitement (again) when your grandma gifted you another terrible green hat this Christmas, just remember…Boxing Day is the day that Trade Me sees the highest amount of new items for sale – just saying!

Victoria Harris (with Sophie Hallwright) runs The Curve, a finance education platform.