The festive season is a time for celebrating, catching up with family and friends, enjoying good food and, of course, giving a few gifts along the way.
But between presents, Christmas parties, entertaining, holidays and end-of-year sales, it can also be an expensive time of year.
A little planning now can help you enjoy the festive season without starting the new year with a financial hangover.
Here are five simple ways to keep your Christmas spending under control.
1. Set your festive budget before you start spending
Before the shopping begins, work out how much you can comfortably afford to spend over the festive period.
Start with your regular household expenses — including your home loan or rent, utilities, groceries, insurance and other commitments — and then determine what you have available for Christmas spending.
Remember to think beyond presents. Your festive budget might also need to cover:
- Christmas and holiday food
- Social events and celebrations
- Travel and accommodation
- Gifts
- School holiday activities
- Decorations
- Boxing Day or end-of-year purchases
Once you have a total figure, break it down into categories. Having a clear spending limit can make it much easier to know when to say yes — and when to give something a miss.
2. Make a list — and check it twice
It works for Santa, and it can work for your budget too.
Before hitting the shops or filling your online cart, make a list of everyone you’re buying for and set a spending limit for each person.
It’s easy to spend a little extra here and there when you find the “perfect” gift, but those extra purchases can quickly add up.
The same goes for festive entertaining. Planning your menu, drinks and shopping list before heading to the supermarket can help reduce impulse purchases and unnecessary extras.
And remember — a thoughtful gift doesn’t need to be an expensive one.
3. Be careful with credit and Buy Now Pay Later
Credit cards and Buy Now Pay Later services can make Christmas purchases feel more manageable in the moment, but remember: you’ll still need to pay for them later.
Before using credit, consider how the repayments will fit into your budget after Christmas — particularly when your regular household expenses return in January.
Spreading purchases across several payment methods can also make it harder to keep track of how much you’ve actually spent.
Where possible, consider using money you’ve already set aside. If you do use credit, keep track of your total commitments and understand any fees, interest or repayment requirements that may apply.
A bargain isn’t really a bargain if it puts pressure on your budget later.
4. Shop around before you buy
Christmas sales can create a sense of urgency, but a big SALE sign doesn’t necessarily mean you’re getting the best deal.
Before making a purchase, take a few minutes to compare prices across different retailers.
Look at the total cost rather than just the advertised price, particularly when shopping online. Delivery fees, return costs and other charges can quickly change the value of a deal.
It can also be worth checking whether you already have unused gift cards, store credits, loyalty points or credit card reward points that could help cover some of your festive purchases.
Most importantly, try not to buy something simply because it’s discounted. If it wasn’t on your list and you don’t need it, leaving it behind could be the better saving.
5. Give your future self a head start
One of the best ways to make Christmas less stressful financially is to start preparing for it well before December.
Once this festive season is over, consider setting aside a small amount regularly throughout the year for the next one.
For example, creating a dedicated Christmas savings account and contributing to it each payday can help spread the cost across the year rather than absorbing it all at once.
Even a relatively small regular contribution can add up over 12 months.
While you’re reviewing your finances, it could also be a good opportunity to look at your broader household budget — including one of your biggest regular expenses: your home loan.
Start the new year with your finances in focus
The festive season should be about enjoying time with the people who matter — not worrying about the bills waiting for you in January.
Setting a budget, planning ahead and keeping track of your spending can help you celebrate while staying in control of your finances.
And if reviewing your finances is on your New Year’s resolution list, your home loan could be a good place to start.
Your circumstances can change over time, and so can the home loan market. A home loan review can help you understand whether your current loan still suits your needs and what other options may be available.
Want to start the new year with a home loan health check?
Speak with your local LJ Hooker Home Loans lending specialist. We’ll take the time to understand your circumstances, review your current home loan and help you explore your options.
Home Loans Made Simple.
We know loans like we know homes.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.