Festive frugality: savvy tips for a stress-free Christmas

28th November 2023

Preparing for Christmas can be overwhelming, but planning ahead can alleviate stress and financial strain. Here are some tips to get ready for the festive season:

Gift giving

DIY Personalised gifts: Create customised gifts like photo albums, handmade crafts, or personalized items, adding a unique touch.
Experiences over material gifts: Instead of physical presents, consider gifting experiences like a spa day, concert tickets, or a cooking class.
Regifting or swapping: Organise a gift swap event where everyone brings a wrapped, unwanted item to exchange, promoting a more eco-friendly and cost-effective approach.

Decorations and festive touches

Upcycle decorations: Craft new decorations from recycled materials or transform old items to give them a festive makeover.
Host a decoration swap: Arrange a gathering for friends or neighbours to exchange decorations they no longer need, giving everyone a chance to refresh their holiday decor for free.
DIY holiday décor workshops: Host or attend workshops to create your own ornaments or decorations, adding a personal touch to your home.

Community involvement and giving back

Volunteer together: Spend time volunteering at local shelters, food banks, or community centres as a way to bond and spread holiday cheer while giving back.
Charity donations: Instead of physical gifts, donate to a charity on behalf of friends or family members who appreciate such gestures.
Create care packages: Assemble care packages for those in need, including essentials like warm clothing, toiletries, and non-perishable food items.

Traditions and celebrations

Host potluck dinners or parties: Organise gatherings where everyone brings a dish, reducing the burden on the host and promoting a sense of togetherness.
Family activity nights: Plan game nights, storytelling sessions, or holiday-themed movie marathons to create lasting memories without spending much.
Create a time capsule: Encourage family members to contribute items or messages to a time capsule to be opened in future years, commemorating the holiday season.

Environmentally friendly approaches

Minimalist gift wrapping: Use eco-friendly wrapping alternatives like recycled paper, fabric, or reusable gift bags.
Plant a tree in celebration: Instead of a traditional tree, consider planting a tree or donating to tree-planting initiatives as a symbol of celebration.
Energy-efficient celebrations: Switch to LED lights or candles for decoration to reduce energy consumption during the festive season.

What is an emergency fund?

An emergency fund is a savings account that you set aside to cover unexpected expenses. These expenses can be anything from a car repair to a job loss to a medical emergency. Having an emergency fund can help you avoid going into debt or having to sell your belongings to cover these expenses.

How much should I save in an emergency fund?

A general rule of thumb is to save 3-6 months of living expenses in your emergency fund. This means that if you lose your job, you will have enough money to cover your rent, food, and other essential expenses for 3-6 months. However, the amount you need to save may vary depending on your individual circumstances. For example, if you have a lot of debt or have a high risk of losing your job, you may need to save more than 6 months of living expenses.

Where should I keep my emergency fund?

Your emergency fund should be kept in a separate savings account that is easy to access but not so easy to access that you will be tempted to use the money for everyday expenses.

How do I build an emergency fund?

The best way to build an emergency fund is to start saving small amounts of money on a regular basis. You can set up an automatic transfer from your checking account to your savings account, or you can make a point of saving cash every day or week. Even small amounts of money can add up over time.

Here are some tips for building an emergency fund:

Create a budget and track your expenses so you can see where your money is going.
Cut back on unnecessary expenses.
Set realistic savings goals.
Get a side hustle or sell unused items to make extra money.

Benefits of having an emergency fund:

Peace of mind: Knowing that you have an emergency fund can give you peace of mind and reduce stress.
Avoid debt: An emergency fund can help you avoid going into debt to cover unexpected expenses.
Better financial decisions: Having an emergency fund can help you make better financial decisions, such as saving for a down payment on a house or retirement.

Here are some examples of how an emergency fund can be used:

To cover the cost of a car repair
To pay for a medical emergency
To cover your expenses if you lose your job
To make a deductible on your insurance

An emergency fund is an essential part of any financial plan. By saving for an emergency fund, you can protect yourself from the unexpected and improve your overall financial security.

Don’t fall into the clutches of a loan shark this Christmas

Christmas is coming – a time of parties, presents, good food and family celebrations. But for many it also brings immense stress, worry and financial pressure.

Loan sharks recognise this and it can be a time of year when they take advantage of the most vulnerable by pretending that they are helping out in a time of need.

The England Illegal Money Lending Team, which works in partnership with trading standards authorities to investigate and prosecute illegal lenders and support victims, is warning people that however tempting that offer of a cash loan might be and however friendly someone might seem, be aware that there could be a loan shark lurking beneath the surface.

Illegal money lenders are masters of deception, they are not always easy to spot. They could be a neighbour who always stops to chat, a parent who you know from the school gate, a popular work colleague, even a long-standing family friend. In the first half of 2023, 56 per cent of the people supported by the IMLT said they thought they were borrowing from a friend.

And victims often aren’t aware that they have borrowed from a loan shark until it’s too late. Things can quickly turn nasty as they demand extortionate repayments and issue threats of violence when you can’t pay.

There are warning signs to look out for which may all indicate that someone is a loan shark.

They include:

– Being given no paperwork or details about the loan

– The lender demanding repayments that add up to much more than you initially borrowed

– Being intimidated or threatened by the lender if you struggle to pay

– The lender demanding you hand over items like bank cards or a passport until you can pay

If you do need to access affordable credit, the IMLT advises people to contact their nearest credit union, which offer an alternative, ethical and safe way of borrowing for people who may have been refused credit elsewhere. Visit www.findyourcreditunion.co.uk to find one nearest to you.

If you think you have been snared by a loan shark, get in touch with the IMLT as soon as possible in complete confidence. Their specialist officers can offer advice and support and investigate the illegal lender.

To get in touch:

– Call the 24/7 confidential hotline 0300 555 2222

– Text a report to 07860 022116

– Join a live chat on the website www.stoploansharks.co.uk (available Monday to Friday 9 to 5)

– E-mail reportaloanshark@stoploansharks.gov.uk

– Private message on www.facebook.com/stoploansharksproject

Remember you have done nothing wrong if you have borrowed from a loan shark. It is the lender who has committed a crime.

Make sure you’re not inviting a loan shark into your life this Christmas.

ENDS

‘Do One Thing’ for financial wellbeing: Talk Money Week 2023

7th November 2023

This year, Hertsavers Credit Union is excited to participate in #TalkMoney Week, an initiative encouraging individuals, stakeholders, partners, organisations, and businesses across the UK to inspire financial wellbeing by doing one thing. We believe that it’s the small steps that count, and we want to make some noise about it.

Our goal is simple: get everyone talking about money together.

1. Review your budget

Start with the basics by reviewing your budget. This is a small but powerful step in understanding your financial health. Take a closer look at your income and expenses to identify areas where you can save more.

2. Save automatically

Setting up automatic transfers from your checking account to a savings or investment account can make a significant difference. It’s an easy way to ensure you’re consistently saving for a rainy day or future goals.

3. Address your pension

Checking the address on your pension might sound minor, but it’s crucial. Ensuring that your pension information is up to date can prevent issues down the road and secure your financial future.

4. Talk to your children about money

Start financial education early by discussing pocket money and financial responsibility with your children. Teaching them good money habits from a young age can set them up for a more secure future.

5. Use financial tools and calculators

Take advantage of the free tools and calculators available on the MoneyHelper website. Whether you’re planning for retirement, managing debt, or setting savings goals, these tools can provide valuable insights.

6. Review subscriptions

Take a few minutes to go through your monthly subscriptions and cancel any that you no longer use or need. This can free up extra funds.

7. Shop with a list

Before going grocery shopping, create a shopping list and stick to it. This simple step can help you avoid impulse purchases and save money.

8. Negotiate bills

Contact your service providers, such as internet or cable companies, and negotiate for better rates. You might be able to lower your monthly bills.

9. Set up an emergency fund

If you don’t already have one, establish an emergency fund with a small initial contribution. Even a modest fund can provide peace of mind during unexpected financial challenges.

10. Sell unused items

Declutter your home and sell items you no longer need online or at a garage sale. The extra cash can be a great boost to your finances.

11. Plan meals

Plan your meals for the week, reducing the need for takeout or dining out. Cooking at home is not only cost-effective but often healthier too.

Why it matters

Talking about money may seem intimidating, but it’s essential. When we share our financial experiences, we make better decisions, strengthen relationships, and reduce stress. These small actions collectively create a financially educated and resilient community.

Financial wellbeing is about more than just money; it’s about peace of mind, opportunities, and security for yourself and your loved ones. By participating in #TalkMoney Week and doing one thing to improve your financial situation, you’re taking a meaningful step towards a brighter financial future.