The Struggle of Christmas Budgeting as a Freelancer
The festive season is in full swing, with decorations and advent calendars already lining supermarket aisles. Conversations are filled with countdowns to December 25th, and the holiday spirit is palpable. As a December baby, I love the excitement of the season, but as I grow older, the financial pressure of covering mortgage, bills, and Christmas costs becomes more challenging—especially as a freelancer with an irregular income.
When I was a child, I remember wanting to buy gifts for all my school friends, which ultimately came from my parents’ pockets. My mum encouraged me to start saving for the festive season so I could buy my own gifts, so I began putting £1 away every week into a dedicated “Christmas pot.” This tradition has continued for the last 20 years, though the amount has increased over time.
Setting Next Year’s Budget
At the end of each December, I calculate how much to set aside for the following year based on what I spent. This year, the target was £85 a month to cover presents, the festive food shop, decorations, any spikes in winter bills, and extra hosting essentials.
2025 has been the most I’ve ever saved for Christmas, primarily because my boyfriend and I are hosting both sets of parents, my sister, her partner, and their two daughters. Increasing my monthly “Christmas pot” savings has been harder than ever, though. There have been numerous weddings, new babies, birthdays, and long overdue payments for freelance projects. When I felt the pinch, my living costs took priority, and I’d forgo paying into the festive fund for a month or two. However, I’d make sure I paid extra (triple, this time!) a few months later to catch up. Which, in itself, is an additional pressure.
To manage, I’ve had to decline dinners with friends, cancel work meetings in central London to avoid travel costs, scale back food shops, and sell my clothes on Vinted or at car boot sales. I’ve even used birthday money given to me to buy Christmas gifts for others—something I suspect isn’t unusual.
Setting Gift Boundaries
I know I’m not alone in feeling overwhelmed by Christmas costs. According to the Bank of England, people spend 30% more at Christmas than in a typical month, which can add up to a staggering £2,460. Unsurprisingly, 25% of Brits rely on credit cards to cover expenses, while seven% borrow from friends or family, according to banking app thinkmoney. Over 35% of Brits plan to spread the costs of Christmas by using Buy Now Pay Later schemes, which are most popular among Gen Z (52%) and millennials (48%), according to Clearpay. And all of this leads to “financial Christmas hangovers” that drag into the New Year, claims the BoE.
To avoid overspending this Christmas, I have set firm boundaries around gifts. In previous years, I made £100 hampers for my in-laws and bought presents for every couple in my social circle, as well as their children. However, buying for 19 people was too expensive for my Christmas pot to cover. So, this year I have limited gifts to just our parents and the children, which I think is fair considering my boyfriend and I are the only couple without kids and we’re hosting. I have allocated £50 each for my in-laws and my parents, and £30 for our five nieces and nephew. My boyfriend and I have also capped our gifts to each other at £50 as our birthdays are in December.
Managing Additional Costs
There are always ad hoc costs, especially if you’re hosting. Out of my Christmas Pot, I have budgeted for a real Christmas tree, which is expected to cost £80, and crackers that average £15 a box. Though I love an ornate wreath and have never had one, at £40 minimum, this is not the year to splurge unnecessarily. I usually send approximately 30 Christmas cards to extended family and friends, but a book of eight first class stamps costs £13.60, so my Christmas card list is getting culled. The Christmas food shop to cater for eight people is averaging £170, which is not far off My Voucher Codes’ £140 estimation, though it doesn’t include food for the limbo week between Christmas and New Year.
I have also factored utilities into my Christmas budget. Last year, our electricity bill doubled in December and January, which I expect will happen again with more guests visiting. Plus, every year without fail, something has broken in my home on Christmas Eve: the kitchen tap, hob, and the washing machine. I’m just praying the oven doesn’t pop its clogs this Christmas! If I stick to the budget and no appliances break, I will have a small buffer to cover me in the post-Christmas period when work is quiet.
The Value of Tradition
Despite moments of doubt this year, my Christmas savings target is within reach. When I question whether I can keep up with my Christmas Pot tradition, I think about my mum who started this tradition long before I was born and still maintains it today to ensure Christmas looks exactly as it did when I was a child. There is an abundance of food on the table, a dazzling Christmas tree, and gifts (yes, plural) for the entire family.
As a 32-year-old homeowner with no dependents, I recognize how fortunate I am to have more disposable income than some. There is no denying my Christmas Pot is crucial in keeping my finances afloat year after year. It stops me dipping into my overdraft, racking up hefty credit card bills, or borrowing money. When I reach my savings goal, I feel a huge sense of achievement, I get more pleasure out of buying gifts instead of panic buying at the last minute, and I am encouraged to start saving again for the next year. More importantly, my savings tradition has taught me the value of money, living within my means, and gratitude. From a young age, I appreciated the smallest gesture because I understood the efforts people went to just to buy and send a card.
While it dawns on me that my Christmas savings will reset in a few weeks, albeit with lower monthly installments to lighten the financial load, I will never give up the tradition because I would seriously struggle without it.