Revealed: The steps to take NOW to save hundreds of pounds by Christmas (and sacrificing your daily caffeine fix can add up to £140)
- With less than 100 days to go until December 25th now is the time to save
- Some people save throughout the year, but money expert Martin Lewis has advised those last-minute savers to put £200 away for the next three months
- Cutting back on unnecessary things like a shop-bought coffee or lunch, or giving up cigarettes could potentially save up to £140
- He advised not to borrow at Christmas, but you could switch bank accounts
There are less than 100 days to go until Christmas, and the most organised among us will already be making plans for the big day.
Others may take a more last minute approach, but still the thought of splashing an average £800 on one day is enough to trigger a case of the cold sweats.
Fortunately money saving expert Martin Lewis has outlined some simple steps to take now to save hundreds of pounds by December 25.
He said on This Morning that now is the time to start putting aside £200 of your wages - giving you enough time to boost your festive gift budget by £600.
By giving up your daily coffee for the 14 weeks in the run up to Christmas you could net yourself around £140
There's no need to be strapped for cash when it comes to Christmas as long as you follow these money saving tips
He said the average person spent around £800 on Christmas, and warned that leaving it all to the last minute - rather than setting aside cash now to help cover it - spells trouble.
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He explained it was impossible for many families to cover all of their Christmas plans with a single pay cheque.
PUT AWAY £200 A MONTH
He advised that September is a good month to start being frugal, and said putting £200 in a savings account each month for the next three months will help soften the blow.
Money saving expert Martin Lewis reveals the best way to make hundreds
‘You have to go cold turkey,' he explained to Holly and Phil on This Morning.
'It is more important to have a good day [on Christmas day].'
SMALL SACRIFICES ADD UP TO BIG SAVINGS
Martin suggested using three golden numbers to work out how much you can save – there are 98 days until Christmas, there are 70 working days left, and 14 weeks total.
If for example you bought a regular coffee every day on the way to work at around £2, you could save £10 a week which would work out at £140.
For smokers, taking inspiration from the Stoptober campaign in October to give up cigarettes could help rake in the pennies, Martin said.
If a packet of 20 cigarettes costs approximately £10, and you have a pack a day habit, quitting now could net you £980.
Instead of spending hours of your time buying presents for everyone you know that you can't afford, just be honest and say no
SWITCH BANKS FOR A £150 BONUS
Many banks offer a 'switching bonus' for new customers who currently bank with a competitor.
Currently HSBC is rewarding those who switch their current accounts with £150, which can take up to 50 days to arrive - but would act as a helpful pre-Christmas boost.
He also recommended looking into the Cooperative Bank which is giving £175, First Direct offering £100, and M&S are handing out £125 gift cards if you switch and a further £50 if you stay for six months.
FIND A BETTER BANK ACCOUNT
MailOnline's money section This is Money, has a regularly updated guide to the best bank accounts on offer picked by its expert writers here at Five of the best Current Accounts
Here are some of its current favourite deals that can earn you cash for joining, interest on your balance, or other perks.
THIS IS MONEY'S FIVE OF THE BEST CURRENT ACCOUNTS
Chase Bank will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 3.8% on balances up to £250,000. The account is completely free to set up and is entirely app based. Also no charges when using the card abroad.
Nationwide's FlexDirect Account offers 5% in-credit interest to new joiners when they switch on balances up to £1,500. This rate only lasts for one year. The account is fee free.
Halifax Reward Account pays £150 when you switch. Also earn up to an extra £75 cashback when you spend £750 each month for 3 months. There is a £3 monthly account fee, but that’s stopped by paying in at least £1,500 each month.
First Direct will give newcomers £175 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1,000 within three months of opening the account.
NatWest's Select Account account pays £200 when you switch. The account has no monthly charges, but to be elligible for the £200, you'll need to deposit £1,250 into the account and log into mobile banking app within 60 days.
Get ready for Christmas early and start saving now, Martin Lewis (pictured with Holly and Phil) says you can make hundreds by December 25th
BAN UNNECESSARY PRESENTS
'Sometimes the best gift is releasing someone from the obligation of having to give,' explained Martin.
Instead of buying someone a present just because they bought you one, he recommends people should be honest up front.
'If you can't afford to buy gifts, just be honest,' he said.
MAKE MONEY FROM UNWANTED GIFTS
Take stock of all the unused gifts and items lying around the home from last year and sell them.
Instead of them clogging up your home, Martin suggests collecting everything together and putting them up for sale to make extra money just in time for Christmas.
This Morning airs weekdays on ITV at 10.30am
