• Financial expert shares essential tips for managing mental wellbeing as winter bills and Christmas costs pile up
• Simple money-saving strategies can help reduce anxiety during the expensive festive period
• Practical advice includes creating ‘worry time’ and finding free festive activities

As we head into the peak of winter, energy bills continue to soar and Christmas expenses loom, leaving many feeling the squeeze on their mental health as well as their wallets. Last year, polling by the American Psychology Association found that nearly 9 in 10 (89%) adults felt stressed about not having enough money, missing loved ones, and anticipating family conflict at this time of year.

To help those with concerns about managing their finances this Christmas, a leading money expert shares practical tips to help ease financial worries and protect mental wellbeing over the holiday period.

Jason Higgs, Senior Deals Strategist at Proxy Coupons, shares five practical ways to safeguard your mental health while managing winter and Christmas costs.

1. Set aside ‘worry time’ for finances 

Rather than letting money worries consume your entire day, schedule a specific 30-minute ‘worry time’ to review your finances and make plans. This helps contain anxiety and makes financial planning more manageable. 

“I recommend setting this time for early evening – never right before bed – and keeping a dedicated notebook. Write down specific concerns and potential solutions. This transforms vague money worries into actionable tasks. 

“If anxious thoughts pop up outside your designated worry time, write them down and promise yourself you’ll address them during your next scheduled session. This technique helps prevent financial stress from taking over your entire day and actually makes your planning more effective,” explains Jason.

2. Create a realistic Christmas budget 

Break down all expected costs, from presents to food, and set spending limits. Having a clear budget should reduce stress and prevent ‘January regret’. Remember, your presence matters more than expensive presents.

“One of the most effective methods I recommend is the ‘50-30-20’ Christmas rule. Put 50% of your festive budget towards essential costs like food and utility bills, 30% towards gifts, and 20% towards treats and entertainment,” suggests Higgs.

“Write down every expected expense in a list – even small things like cards and wrapping paper can add up. Then set a realistic limit for each person’s gift. Secret Santa arrangements for adult family members can slash costs dramatically – suggest a $20 limit and suddenly a $200 gift list becomes much more manageable.”

3. Find free festive joy 

Look for free Christmas activities in your area, like light displays, carol services, and winter walks. These create magical memories without spending a penny, helping you feel festive without financial pressure.

“One of my favorite money-saving tips is to plan a Christmas lights walk with friends, bringing homemade hot chocolate in flasks. Check your local library too – they often host free storytelling sessions and craft activities during December. Even something as simple as a festive movie night at home with homemade treats can create those special Christmas moments.”

4. Start a ‘stress-free savings’ routine 

Put aside small amounts regularly using the micro-saving challenge or round-up apps. Watching your savings grow, even modestly, can provide a sense of control and reduce anxiety about winter bills.

“The ’round-up’ technique really is effective – if you spend 4.60 on a coffee, round it up to 5 and put 0.40 in savings. It seems tiny, but I’ve seen people save hundreds this way without feeling the pinch. The psychological benefit is huge – instead of feeling helpless about bills, you’re actively building a financial buffer,” explains Jason. 

“Set up a separate savings pot with a specific name like ‘Christmas Calm’ or ‘Winter Warmth’ – it might sound silly, but naming your savings goal makes you more likely to stick to it.”

5. Build a support network

Share your concerns with trusted friends or family – they might be feeling the same way. Many are cutting back this year, so suggest budget-friendly ways to celebrate together.

“One trend I’m seeing more of is ‘Christmas content swaps’, where friends get together to exchange festive films, books, and board games they already own, creating new entertainment without spending anything. Secret Santa is replacing individual gift-giving in many friend groups, and potluck dinner parties are making a comeback instead of expensive restaurant meals. 

“There’s strength in numbers, and having these honest conversations can actually bring people closer together while taking the pressure off everyone’s wallets” says Jason.

Jason Higgs, Senior Deals Strategist at Proxy Coupon, comments: 

“Financial stress can cast a shadow over what should be a joyful time of year. But by taking control of your spending and focusing on what truly matters during the festive season, you can protect both your mental health and your bank balance. Remember, there’s no shame in scaling back – many people are making similar choices this year.”