It’s that time of the year again that is exciting but requires financial planning. It is because everyone likes to host a compelling Christmas dinner and decorations. It makes the event perfect and the most magical time of the year. What people miss out on is- tracking expenses. No wonder one is surrounded by bills when January hits. It not only replenishes mental health but the bank accounts too.

So, how about tracking cash and giving yourself and others the gift of financial freedom?

The blog lists the best ways to achieve financial freedom during the Christmas holidays. It is the right time to recover financially and step into the next year with confidence, hopes and dreams.

6 Ways to Land up 2024 – “debt-free”

According to research, “money is the primary cause of stress”. It affects your mental well-being, and relationships go haywire. It is thus essential to get at par with the reality. No matter how much you try to save, you may find it excruciating by the month’s end. Thus, dissatisfaction with personal financial management aggravates anxiety and depression levels.

Would you still delay the plan?

No. So, let’s begin the journey to financial freedom and ensure a peaceful start:

1)     Set Christmas and New Year goals

Highlight these goals from the financial freedom perspective. Precisely, try to be specific about the costs and the deadlines. Make those goals that you can achieve without potential financial setbacks. Here is how you can do so:

·        Do you want to update your home or decorate it?

·        How much potential should you have in the account to make that possible?

·        If low, by how much time can you save the money?

Likewise, after Christmas, make a similar financial analysis:

·        How much debt do you have?

·        Can you curtail some expenses?

It would help you clear debts quickly.

2)     Pay some towards charity this Christmas

There are multiple ways to make your Christmas celebrations memorable. You must have seen lots of supermarkets campaigning to donate to the needy. They do this to make the customers aware and help the poor. Thus, it could be a unique way to celebrate Christmas. You can donate clothes and books and even pay in cash to charity on the occasion. 

For this, you can volunteer or dedicate a few hours or minutes to the smiles of the needy. You can also donate on someone’s behalf. You can get a tax relief on charity donations. Just keep the receipt with you. Tax-free things are a great relief from financial stress. Moreover, it reduces liability.

3)     Set up savings accounts for Children

Are you thinking of gifting something unique to your children this Christmas? Why not lay the foundation of future wealth and tax benefits for your children today? Yes, you can set up a Junior ISA savings account.

In which you can deposit any fixed amount every month unless they turn 18 or 17. You then can grant them the key to regulate it. It would be the best and Thoughtful Christmas gift for the children. It is also one of the best ways to regulate your savings potentially.

4)     Build an emergency fund

Between Christmas and New Year preparations, you may often find yourself out of cash. Why? It is because the paycheck one receives does not suffice for every expense. Sometimes, one must break the budget to fund any emergency purchase or accidental treatment. Eventually, it impacts the budget and makes it challenging to manage liabilities. Thus, having an emergency fund is a fool-proof solution to deal with untimely things.

You can start it with just £1000 in the beginning. Continue the payments until 6 months (minimum). It would help you combat extreme financial crises like unemployment, scarcity of resources, and economic downturns. However, you must not use it for Christmas or occasion-related expenses. It is critically ideal to meet basic survival needs.

However, if you need money urgently for Christmas preparations, an external facility may help. Individuals low on income and limited savings can benefit from Christmas loans for bad credit in the UK marketplace. In inflation and low income, keeping up with credit scores is challenging. Therefore, these loans help individuals finance Christmas-related expenses despite poor credit history.

 It is also one of the best decisions to make from the financial well-being perspective. Using credit cards for Christmas purchases dents your overall credit score. Moreover, it is a costly alternative. Thus, Christmas loans help retrace your financials and improve.

5)     Practice a conscious gifting strategy

Try to break the monotony of gifting the same things to your loved ones. It is the time to gift something valuable, useful and productive. It should be something that helps others in managing their financials better. Most individuals would appreciate the new way of greeting.

 You can check out money management guides, references to the stock market and investing, gift a teen the best ways to save and earn safely online, etc. It would be a thoughtful gift and help you relax on the packaging part. Packaging costs a fortune. Thus, one must try something exciting and financially helpful to gift this Christmas.

Moreover, do not forget to gift yourself. You are the most critical part of your life. Check where you lack in money management, savings, investments and achieving financial goals. It would help you know whether you need a budget planner or take financial advice. Giving the trick to lead finances and ensuring a comfortable lifestyle is the best gift. It grants strength to your lifestyle goals and aspirations. The best part of all of this is – HUGE SAVINGS!

6)     Consolidate debts and manage liabilities

It is one of the most important aspects of financial liberty or freedom. If you find yourself neck-deep in debt after celebrations, consolidation may help. It grants another chance to build up credit from scratch and simplifies debt.  Consolidating these grants one:

·        Peace of mind

·        Releases additional expenses clocked

·        Reduces overall interest on the loans

·        Reduces liabilities to dealing with multiple lenders

·        Reduces repayment amount to an extent

Tap it if you struggle to maintain the right balance between savings and expenses post-Christmas and New Year. You can even get debt consolidation loans for bad credit in the UK with no guarantor facility. It grants one individual control over finances, the opportunity to know the spending better and reduce high-interest debts. Eventually, it boosts the credit rating. Wouldn’t you like to check it out?

Bottom line

The fact is that you do not have to be wealthy to regain financial freedom. Instead, you can achieve it by taking baby steps towards your financial goals and reducing debts. The trick lies in controlling the money instead of letting it dominate you and your mind.

The best part is- one is never too young or old to learn basic financial management fundamentals. It goes a long way in ensuring financial freedom. Cheers to celebrating the Christmas holidays productively this time! Would you try to?