Have yourself a debt free Christmas

November 02, 2015
Amanda Thomas

5 tips to keep your finances in check this holiday season

Christmas is one of the most enjoyable times of the year, though for many, the costs associated with the festive period can cause a great deal of stress.

In an effort to keep the stress at bay during the holiday season it is handy to plan ahead financially to ensure the budget doesn’t blow out over the silly season.

“Getting into the Christmas spirit doesn’t mean you have to get into debt. No one wants to start the New Year on the back foot, so it pays to do a budget early so you know how much you can afford.”

Here are some tips to help you prepare for the Christmas season and keep your finances in check:

Budget now: There are seven weeks from now until Christmas. Work out how much you can afford to put away each week between now and then to cover gifts, food, entertaining and travel expenses for the silly season. Then calculate the total figure you will have to spend this Christmas and allocate funds for each type of expense.

Credit free Christmas: Think of long term gains, instead of short term pleasures.  Make sure Christmas doesn’t break the bank – if you can’t afford something, don’t buy it. Christmas may look a little more festive with those new decorations, but come January they will be a financial burden. One way to make sure you stick to this is by leaving the cards at home and only taking cash with you when shopping.

Purchase with purpose: Work out what gifts you are buying for each friend and family member before you go shopping. That way you can compare prices online and work out which stores you are visiting before you hit the shops. You may even be able to buy some gifts online, but just be aware of potential shipping costs. Shopping with a purpose and clear plan in mind will also help reduce unnecessary purchases or expenses like coffee or lunch.

Family expectations: Is there a trend within your family to buy a Christmas present for every niece, nephew, in-law or pet? For most Australians, purchasing all these gifts is not only time consuming, but a financial pressure. Consider having an open conversation with your family around the idea of having a lucky dip, secret Santa, or at least agree on a maximum dollar figure that can be spent on each person’s present.

Review your lender: One way to potentially inject more money into your coffers this Christmas and help you cope with the costs of the silly season, is to review your lender. If you have been with the same lender since you got your first job, then it might be time to consider switching to another bank. Not only are some banks offering dollar incentives – such as $100 into your savings account – if you switch, but they also have high interest rate savings accounts, so you could earn more money on the cash you have in your savings account. This could be extra money for the Christmas gift fund. If you do switch lenders, make sure you read the fine print, as you may find that your lender will offer you dollar incentives for depositing a certain amount of money into your account each month or withdrawing a certain amount of money from the ATM each time.

If you would like to learn more about your home loan or financial advice options, call 5593 6642 or visit www.mortgagechoice.com.au/helensvale1. 

Posted in: Tips

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