Now's the time to start preparing for Christmas (From Daily Echo)

Martin Lewis: how to save money at Christmas

9:30am Friday 30th September 2011 in Money Saving Expert By Martin Lewis

Christmas is coming! No, don't tell me to shut up – I hate the early creep of festivities as much as the next person, but if you want to have more and pay less, there are some things you need to do right now.

January is always a frustrating time to be a Money Saving Expert. Many people complain that they're skint. Ask why and the answer is almost invariably "because of Christmas, of course". Yet Christmas isn't some shock expenditure. So let me give you a warning: Christmas will be on 25 December this year, and now's the time to prepare.

Here are my top ten tips of what to do now:

1. Do some DemoHOHOtivation

Would you prefer extra cash for Christmas or a cappuccino every day? If you want more money for your festive coffers, a few small sacrifices now can make a big difference. To help, here's three golden numbers (rounded for ease):

80 days left until Christmas

60 working days left

12 weeks left

So if you spend money on something non-essential every work day, just multiply the price by 65, eg, give up a cola and crisps costing £2 and you'd have £130 more for Christmas. The choice is yours. For a funky daily updated tool that does this for you, go to demoHOHOtivator.com

2. Bag 5% off ALL Christmas shopping

The Capital One World Mastercard pays a huge 5% cashback on all spending on up to £2,000 in the first 99 days – perfect if you're likely to have a hefty Christmas and January sales spend. After all, it means you get £5 back for every £100 you spend.

Yet only do this if you can repay IN FULL each month (best by direct debit) or the 19.9% representative APR dwarfs the gain. To get it, you must earn £20,000+, be 21+ and a homeowner. If that doesn't suit, you can still get other cards which pay over 1%; see moneysavingexpert.com/cashbackcards

3. Book hotel rooms now if you're visiting relatives

There are some seriously cheap rooms if you're going away in the UK, but don't want to encroach on family territory. premierinns.com currently has a £29 room sale including many over the Christmas and New Year period, plus there may still be a few remnants of £15 rooms from the travelodge.co.uk sale. Go quick though, as supply is limited, so availability for when and where you want may be scarce.

4. Christmas costs £650 – use 3 months' income

Far too many wrongly ask themselves: "What do we need to have the perfect Christmas? (or Eid, Chanucah or Diwali)" The result of this is either leaving themselves disappointed or needing to get into debt.

Instead, first calculate your Christmas budget, then ask yourself "what's the best Christmas we can have on that money". A typical family's Christmas spend is £650, too much for most from December's pay alone. So why not put money aside each month now, at no cost (better than borrowing and paying back later with interest).

Work out how much you need and put a third aside in October and November then pay the rest from December's salary. If you can't afford that, cut your cloth accordingly – a thrifty Christmas beats a debt-filled new year.

5. Max cash from old mobiles (£150 possible)

You can't have failed to miss the adverts on the TV extolling you to flog your old mobile phone. It's true it does generate cash, but don't just flog old phones to any company. There are massive differences for each handset on which company pays the most. For example, at the time of writing, the top payer for the HTC Desire Z is £120; some others pay just just £55. It's possible to get £145 for the iPhone 3GS 16GB £145; others pay just £80.

To quickly find the best payer, try my mobilevaluer.com comparison site. It's also worth checking how much your handset is going for on eBay, as that can be even more.

6. Reclaim lost Tesco points, then treble them

Quickly check and reclaim lost vouchers online via tesco.com/clubcard – many people have vouchers they've never used and it can be a great boost for your Christmas coffers.

Yet DON'T save them for festive food. Check Tesco's Rewards brochure to triple their value (eg, £10 becomes £30) on items such as jewellery or mags (or for visiting rellies, train tickets).

7. Turn old gold into Christmas cash

Postal gold produces more horror stories than Hollywood, but we have found a few good ones, eg, £105 for an 18ct gold ring. The top on feedback and price is hattongardenmetals.com, yet you really should do research before doing this. For example, if the jewellery has a gemstone or is designer you can often get far more than its scrap price. For more see moneysavingexpert.com/gold

8. Set up a Christmas cupboard

Set aside space for Christmas goodies now and plan your shopping list. Work out which stores sell those goodies – then keep track of vouchers/sales and be ready to pounce to ensure you get the best price.

9. Amazon hidden gift discounts of 80%+

One cheap route to find stocking fillers is the web giant amazon, which has countless reduced products. The key is finding them, but by manipulating its URLs (page addresses) you can build your own bargain basements, so it shows things like 90%+ off kids' DVDs & 90%+ off toys. Either have a play yourself or use my Amazon discount tool to do it for you at moneysavingexpert.com/amazontool

10. If it’s a gift, ensure you note that on the receipt

Legally, only the person who purchased the item has a right to return faulty goods. Yet, if the assistant writes on your receipt and their copy (ie, the debit/credit card slip) that the item's a gift and who it's for, the rights are transferred. Of course, some shops allow recipients to take things back regardless, but it's worth doing just in case.