Black Friday and Christmas: how to budget without a January shock

Between Black Friday, presents, dinners and travel, the end of the year is when it's easiest to overspend without noticing. The bill arrives in January, just as the holiday glow fades and payday feels a long way off.

1. Decide on a total now

Before you look at a single deal, set one total figure for November and December. Check what you spent last year: it's usually more than you remember.

2. Split it up

• Gifts: list the people and an amount for each.
• Food and dinners: at home and eating out.
• Travel.
• Black Friday: only for things you were going to buy anyway.
• Surprises: a 10% buffer.

3. Black Friday with a list

A deal is only a saving if you were already going to buy the item. Write your list beforehand, check the price over previous weeks (many "discounts" start from inflated prices) and be wary of countdown timers rushing you.

Watch out for buy now, pay later: splitting purchases into three or four instalments hides the total and means January starts with payments already due.

4. Start saving now

If you start in October, you have about eight or nine weeks. Dividing the total by the weeks left gives a far more manageable figure than paying it all in December. If you get a year-end bonus, decide before it arrives how much goes to the holidays and how much stays untouched.

5. Think about January

The January squeeze is real: annual renewals, tempting sales and less money after the festivities. Keep at least one normal month of fixed costs set aside before you finalise your Christmas budget.

In MonVault you can create a goal for the holidays, log each purchase and see at a glance how much of your total is left. See how it works.