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All I want for Christmas is… a financial MOT?

All I want for Christmas is… a financial MOT?

Category: Money Saving
22/12/2017

While Christmas is generally a time to spend money, one in six Brits are set to spend their Christmas week figuring out ways to save money. By doing a 'financial MOT', they are aiming to save an impressive £900 in 2018.

New year, new plan

Recent research, conducted by Carwow, reveals that these savings-savvy Brits are planning to start saving as early as 26 December. Some (32%) blame their need for a financial check-up on 2017 being a particularly tough year, while others (15%) simply have no other downtime except Christmas to plan for next year.

To save the £900, 60% are planning to head to the January sales to save money on the items they're going to need in 2018. Meanwhile, 32% will try to get the most competitive prices on big ticket items and 16% are planning to use their Christmas break to start researching the cost of expensive purchases, such as a car.

To start the new year off right, 82% plan on looking for at least one thing to save money on on 1 January. The most popular way to save money is by reducing the weekly food bill and eating out less (40%), followed by negotiating a better TV and broadband package (34%), switching energy providers (31%) and negotiating a new phone package (23%). Some are even planning to take fewer holidays (16%) or cancelling credit cards (14%).

Making the most of your savings

Alex Rose, head of trading at Carwow, commented: "January is the time of year when people are looking to make changes – often big ones. People are taking the time over the Christmas period to look at where their money goes each month and start the new year with a financial clean bill of health."

If your money is going towards paying off debt, clearing this should be a priority. You could consider taking out a 0% balance transfer card to consolidate all your debt and get some breathing room where you're not paying any interest. Just make sure the balance transfer fees don't increase your debt by too much.

Once you've paid off all your debts, it's time to start putting the money you're saving into a separate account, so it can start accumulating some interest and you won't be tempted to spend it all before you really need it. To start, an easy access savings account could be ideal.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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