As December marches on, many across the UK find their finances spiralling out of control. Between festive food shops, social events, and seasonal outings, our credit cards are taking a serious hit—and that's before we've even started on presents for family, friends, and colleagues.
For those without a dedicated Christmas savings pot or a strict gifting budget, panic can easily set in. The temptation is to throw caution to the wind, overspend, and face the new year burdened with anxiety and debt.
The Expert's Two-Step Strategy for Smarter Spending
Fortunately, regaining control is possible with some straightforward strategies. Laura Linden, a chief financial officer and author of UnF*ck Your Business Finances, advocates for two simple rules to employ while Christmas shopping.
"Consider this the first step to taking control of your finances by forming better habits and changing your money mindset," says Laura. "These are part of setting you up for success in 2026."
Apply the 'Return on Joy' Test
The first rule is a mental checkpoint. Before purchasing any gift, ask yourself a crucial question: will this item deliver a genuine return on investment in joy for the recipient?
"Before you spend on a gift, ask yourself if this will bring real pleasure to the recipient. If not, is it worth the money?" Laura advises. "This 'return on joy' test helps you prioritise giving that has true meaning."
Master the Five-Minute Pause Rule
The second, potentially game-changing tactic is the five-minute rule. This involves deliberately creating a pause between seeing an item and buying it.
"If you’re online shopping, place the item in the basket and then do something else for five minutes," she explains. "If you’re in a physical shop, take a picture of the item and the price tag but then walk away for five minutes."
Use this brief interval to reflect. Is there a less expensive alternative? Crucially, are you falling into the trap of 'nice person spending'—exceeding your budget in pursuit of the 'perfect' gift to appear generous?
"Generosity is a lovely trait but not if it’s causing you financial hardship behind the scenes," Laura warns. "This is about having boundaries, being confident in saying no or not putting your hand in your pocket first."
If, after the pause, you still believe the gift is reasonably priced and will spark joy, you can purchase it with confidence, knowing it was a considered decision.
Thoughtful Gifting on a Budget
Embracing a philosophy of useful or beautiful gifts, as once suggested by designer William Morris, can also guide your choices. The aim is to give presents that feel special and will be genuinely used, rather than becoming unwanted clutter destined for a charity shop next year.
With these mindful strategies—the joy test and the five-minute pause—you can navigate the festive shopping season with greater financial control, ensuring your generosity doesn't come at the cost of your future financial wellbeing.
