Christmas can be a big burden financially, with gifts, parties and festivities, the dollars can add up. Below are some simple tips you can implement to ease the strain on your wallet this holiday season.
Create a Budget
Before you even think of buying Christmas presents, it’s important to plan out your spending and create a budget. Take some time and determine the following:
- What is your overall budget for gifts?
- Who do you need to buy gifts for?
- How much are you willing to spend per person?
From this you will have a fairly detailed budget for gift giving. You can also download a budgeting app to make keeping track easier.
Shop Online
For some, shopping in store can increase the likelihood of overspending. You are picking up several items in a short span and may not realise the total until you reach the register, factoring in the usual chaos of the shopping centre. Shopping in the comfort of your home can reduce this stress, and keep an easier eye on the growing total. Additionally, you will be able to compare products and prices between retailers.
Pay Cash
It can be easier to control your spending when you use cash compared to constantly ‘tapping’ your card. A great way to stick to your budget is to to withdraw your budget in cash and leave your cards at home. Once you have run out of money you cannot spend anything more.
Reduce Entertaining Expenses
Presents aren’t the only thing that can strain the budget in the holidays, parties can also be costly. If you are hosting, ask others to chip in and bring platters, drinks or desserts. Plan carefully to reduce waste, by not overbuying food or decor. If you end up with leftovers think of creative ways to turn them into additional meals for the days following, or send them off with family members at the end of the day.
Plan for Next Year
After implementing a budget, it’s important to reflect on whether it worked and any adjustments needed for the following year.
Don’t be too hard on yourself if you end up spending more than planned. Instead use it as a learning experience for next Christmas. A good way to avoid this next year is to calculate what you spent and then divide it by 52 for the amount you need to set aside each week.
Buy Strategically
Christmas shopping doesn’t just have to be done at the end of the year. Buy throughout the year if you see items someone will like. Additionally utilise sales – such as Black Friday, Cyber Monday, EOFY and Boxing Day – to buy gifts at a discounted price.
Also stock up in advance if you are planning to host. Rather than doing a large shop the week before Christmas, but additional non-perishables in the weekly shop.