How to make your December pay last until January with these seven money-saving tips

Millions of workers across Scotland and the rest of the UK are set to receive their pay early this month as most employers whose pay dates fall in the last week of December - especially around Christmas Day and Boxing Day - are expected to bring scheduled payments forward to ensure people receive their wages during normal banking hours.

As Christmas and Boxing Day fall on a Wednesday and Thursday this year, those days are classed as bank holidays, which means payments could arrive on Monday 23 or Tuesday 24, but most-likely land in accounts the week before. However, while this may feel like an early f inancial festive gift, it means there will be longer to wait before the next pay is due in January.

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This can mean a five-week wait - or longer - for some employees, so instead of splurging the cash early, it’s important to remember that it needs to last that wee bit longer. The start of a new year can often be a tough time for many households, but the ongoing cost of living crisis and another energy bill rise due on New Year’s Day could make it even more of a challenge.

The biggest challenge will be making your December pay last that extra week, but making some small changes now could make a big difference in January and ease any money worries.

Below are seven realistic ways to tighten your financial belt and help make your money last until your next pay day in January.

Check your balance regularly

The main thing to do between the December pay date and the next one in January is to regularly check your bank balance.

Being aware of how much money you have coming in and going out, especially when payments or bills are due, will make you more aware of how much you have to spend.

Keeping a list of all outgoing payments either on paper or in the notes application on a phone, tablet or PC, can help you budget within your means and greatly reduce the urge to overspend.

Do not be tempted to use December's pay to fund last-minute Christmas shopping

If you receive your December pay early, it might be tempting to start digging into it to buy last-minute Christmas gifts or stock up on extra food or fizz for the festive fortnight - leaving you with even less money to get you through January.

If possible, try to finish your gift shopping with the pay you received in November and remember, most people are probably cutting back again this year so don’t put yourself under pressure to spend beyond your means.

Set a budget

Figure out what money you have left over after paying your regular bills and buying necessities, such as food, utility bills, fuel for your car or cash for your commute. From here, you can see what you're left with and then divide the remainder between the days or weeks you have before the January pay day.

Keep your budget separate

Once you've set your budget, keep the amount for essentials somewhere physically different, such as in a separate account. It may look like a stark amount left, but it will make you more conscious about what you can spend your money on.

It's also crucial to take note of any Direct Debits, standing orders and recurring payment dates, so you don't get caught out and end up going into the red.

Search for those yellow stickers

Christmas Eve and Hogmanay could bring spoils without the spends as supermarkets will be reducing stock dated December 25, 26 and possibly 27th in an effort to reduce loss through non-sales.

Fresh fruit and vegetables are also likely to be reduced ahead of stores closing for Christmas, especially staples which will be in bulk supply.

Fresh festive party treats, turkeys, joints of beef, trifles, cream, cooked hams and even milk will be ones to watch out for - along with other short shelf life products found in the dairy or produce departments.

Top tip:

• If you see double cream reduced, buy in bulk. Pour it into a stand mixer with the balloon whisk attachment and whisk at high speed for around 10 minutes. The cream will separate leaving you unsalted butter and buttermilk. Shape it into a block and store it in the fridge.

If you’re in the supermarket before Christmas Eve, check the dates and stock levels to give yourself an idea of where the reductions are most likely to be on Christmas Eve. An initial discount will be applied early on Tuesday, but the bigger deals will come an hour or two before closing.

Batch-cook meals and try out new recipes

If you have a variety of items in your cupboards and aren't sure what to make, there are many apps and websites where you can input the ingredients and recipe suggestions will be offered.

The pandemic and two years of lockdown also created a boom in YouTube creators sharing tips and tricks for making at home versions of popular food products including favourites from Greggs, KFC and popular takeaway dishes - all for a fraction of the cost.

Shop around for discounts and deals

Before making any purchase instore or online, do a quick web search to see if there are any discounts or deals available.

If you’re planning a supermarket shop, checking the online store doesn’t require an account and you can quickly find mutlibuys, discounts and special purchases to help you make your money go further.

Make sure to use any loyalty schemes with the shops and retailers you use regularly as these could give you additional discounts or rewards including cashback or vouchers.