With all its parties, presents, food and drink, the festive period comes at a cost, no matter your financial situation. However careful you are, Christmas, New Year’s Eve and all the surrounding days see many of us spending more money than we planned to – whether it’s that extra gift you just had to get for your mum or the impromptu drinks with an old friend.

So come January, it’s normal to feel a little fear around opening your banking app and assessing the damage. However, if you’ve found your bank balance isn’t in its healthiest state this side of the new year – and you’re wondering how you’re going to make it through to your next payday – do future-you a favour with this one simple thing that will make Christmas 2025 a little easier.

It’s something I implemented myself this time last year, and it made a world of difference for my bank balance – and stress levels. After Christmas 2023 was particularly brutal on my finances, I vowed to never let it happen again. On 1 January 2024, I created a savings pot in my banking app (I use Monzo) called Christmas Funds, and put £20 in.

Every payday thereafter, I immediately put anywhere between £10-30 in the pot. It was a small enough amount that I didn’t miss it month to month, but it soon started to add up. By early summer I already had £100 in the pot – easily enough to cover my partner’s (annoyingly timed) December birthday. Just knowing that I wasn’t going to have to worry nearly as much about money come Christmas alleviated my financial stress throughout the whole year.

The goal was to put £30 in the pot every month and have £360 saved by the end of the year. Not all months went to plan – some months saw a smaller deposit and I confess I dipped into it a couple times when funds just couldn’t stretch until payday. However, by 1 December I had £200 saved, which went a long way in alleviating the financial burden of buying Christmas presents.

It’s also meant I still have funds to play with this side of the new year, meaning January doesn’t have to be the bleak month it usually is. But what I didn’t expect was my newfound confidence with money and sense of control over my own finances – a priceless feeling, I’d say.

If you’re feeling the pinch this January, I highly recommend creating a new savings pot or account, separate from any existing savings, for Christmas 2025. Whether you squirrel away £5 or £50 every month, the total will certainly relieve some of the pressures of Christmas spending in 11 months’ time – and help you to feel more in control of your financial future.

Images: Molly Saunders/Getty