20 budgeting tips for a stress-free holiday season
Whether you celebrate Christmas or not, December and January are busy months filled with feasts, family gatherings, BBQs with friends, and sun-soaked holidays – bliss! Yet, all this goodness can hit our wallets hard, leaving us financially drained come the new year.
Before things get out of hand, there are some positive actions you can take now to alleviate any problems down the track.
Here at Nectar, our budgeting professionals have put together an extensive list of ideas and disciplines you can adopt to ensure you’re ready to tackle the silly season with confidence and keep your bank balance intact.
Let’s take a look😊
1. Plan and save early.
Now when we say early, we mean January! (If you’ve missed the boat this year, it’s worth trying next year). Set up a small weekly automatic transfer (e.g., $20) to a dedicated savings account. You’ll hardly notice it, but the satisfaction you’ll feel when it’s time to buy gifts or cover food costs will be worth it!
2. Know your budget.
If you’re celebrating Christmas, or have other major expenses planned this season, it helps to know how much you have to spend.
If you haven’t created a budget, now’s the time to do a quick calculation. To create a Christmas budget, take the total amount you earn each week and subtract your outgoings. Multiply that figure by the remaining number of weeks until Christmas – this is your total spend. Now divide it into three categories: events, gifts, and travel, and allocate an amount to each.
For Christmas gifts, list the people you need to buy for and figure out your budget. For travel, consider accommodation, petrol, and food. For events, account for drinks, food, decorations.
If the total cost is far more than you can afford, now’s the time to make a few sacrifices.
3. Track your spending.
Setting a budget is useless if you don’t stick to it! Record your spending as you go and ask yourself these three questions before each purchase: Do you really need it? Could you find a cheaper option? And why are you buying it?
4. Establish expectations early.
If you are cutting down on spending this Christmas, establish expectations early with family and children. Don’t forget to explain why you’re taking this approach. To simplify children’s gifts, consider giving just three: one thing they want, one they need, and one experience to share with the family.
5. Don’t panic buy!
Start buying and stashing away presents early. Look out for sales and good lay-by offers. Have the kids write their wish lists early so you can grab gifts when they’re on sale.
6. Find the bargains.
With your gift list in hand, plan for big sales like Black Friday and Cyber Monday. Look out for non-perishable food specials at supermarkets, and consider buying big items on Boxing Day – if you can bear the madness!
7. Shop online.
The best way to compare prices before buying is online. Use search engines to find available items, along with their costs and delivery expenses. Even better, check for free shipping and exclusive online codes for further savings.
8. Don’t compare with others.
Don’t be distracted by the plans and purchases of others this Christmas. Stay focused on what’s best for your family and budget. Think how good it will feel to start the new year without a credit card blow out!
9. Suggest a Secret Santa.
‘Secret Santa’, also known as Kris Kringle, is a great way to save money and reduce holiday stress. Draw a name from a hat and buy a thoughtful gift (instead of many small ones). Don’t forget to set a price limit and consider reserving Secret Santa for adults while making another plan for the kids.
10. Be a smart host.
If you’re hosting, reduce costs by having guests bring a specific dish. This saves both money and precious time!
11. Clever wrapping.
Try making gift bags from fabric and reuse them each year, or buy a roll of brown paper and have the kids decorate it. Or for a touch of class add a sprig of rosemary! Even your kids’ end of year artwork can make unique wrapping paper.
12. Homemade happiness.
Homemade goods like cookies, cakes, jams and pickles are affordable and always appreciated. A ‘Handmade’ theme for Christmas day could add a personal touch, with baked goods, plants, artwork, framed photos and more.
13. Use your reward points!
Now’s the perfect time to cash in your reward points for gifts or vouchers. Order early to ensure they arrive on time.
14. Decorate with flowers.
Freshly cut flowers can brighten your home this holiday season. Save money, by exploring your garden or asking a gardening-savvy friend for blooms. For a cheap Christmas tree alternative, try a potted plant.
15. The gift of time.
Instead of material gifts, consider offering time – an hour of gardening, cleaning, or a day out. This is a great idea for teenagers and students with limited funds!
16. Donate.
Consider making a charitable donation instead of traditional gift-giving. This can be a wonderful, fulfilling way to spread kindness.
17. Beware of retail marketing.
Beware of tactics like price deception, where prices are inflated then discounted to appear like a deal. Planning and researching ahead helps avoid these traps.
18. Alternative places to shop.
Explore op shops, antique stores, and second-hand bookshops for unique gifts that can save you money.
19. Have a party plan.
Attending parties is fun but can be expensive. Consider taking cash and leaving cards at home. Once the cash is gone, you won’t risk blowing the budget (just don’t forget to save some for the taxi home!).
20. Save on travel.
Holiday travel can be costly once you factor in flights, petrol, accommodation, catteries/kennels, food and activities. Plan well in advance and consider affordable options like camping or day trips to keep costs down.
Summary:
This time of year has a special way of bringing friends and family together, but also comes with financial pressures. We hope these tips help you enjoy the season, stay on budget and keep the stress at bay. Take a deep breath, get ready, and have a fantastic festive season!
Planning to purchase property before Christmas or in the new year? Contact me today to explore loan options and get pre-approved.
