Christmas is a joyous time of year where we come together with family and friends to enjoy and celebrate the season.
If we’re not careful though and without the proper planning, it can become a costly exercise that you could be paying off well after the Christmas tree is packed away and the relatives have gone home.
Here are a few simple tips to manage your Christmas finances.
Set aside your spend
It’s important to know what you’ve got to play with before you start spending. Many people like to set aside a few dollars in a separate savings account each week throughout the year to ensure they have a bank of money to spend on Christmas activities. This will definitely give you a head start come this time of year.
Here's how to stay on top of your budget
Make a plan
While circumstances can change as we get closer to Christmas, set yourself a plan for what you need or want to spend money on. Who do you need to buy presents for? Are you hosting or attending Christmas parties? What’s the plan for Christmas Day? Is a holiday on the cards? Costs can add up quickly at this time of year so write a list of all your priorities and allocate money towards each one. You’ll get an idea pretty quickly of what you can and can’t do or where you might need to make adjustments
Set a budget
Setting up a budget
As part of making a plan, you need to set a budget. This will help you focus not only on what you need to purchase but what you’re going to spend. Most importantly, the thing to do is STICK TO IT!
Have a chat with family and friends ahead of time as well to set expectations for the season. Agree on a spend limit for gifts, or do a secret Santa to cut costs and ask everyone to contribute if you’re hosting a Christmas breakfast, lunch or dinner.
Make a list and check it twice
Before you start your Christmas shopping, make sure you’re armed with a list of what to buy. Steer clear of those additional items that you really don’t need and try not to give in to impulse purchases.
Check what you’ve already got so that you can reuse items like wrapping paper and Christmas decorations. Get crafty with your table styling and go foraging for branches, twigs and greenery that make beautiful and natural centre pieces or wreaths.
Do your research
Many retailers will be vying for your Christmas dollars at this time of year, which means you should be able to find some decent deals. Do your own research, be it online or catalogues and keep an eye out for any bargains still floating around from Black Friday sales.
Be prepared
If you’re hosting the family or friends on Christmas Day, it’s never too early to prepare the menu; at least the bigger items. Find those bargains on large cuts of meat or poultry and freeze them for the big day. Grab meringues and popular ingredients ahead of time to keep in the pantry to avoid the last minute rush.
Less is more
The truth about buy-now pay-later services
How often have you seen a Christmas feast prepared and much of it go to waste? While it’s wonderful to spoil your guests with a special meal and have plenty of leftovers for the following days, you can reduce the menu without skimping on the experience.
Whether it’s a traditional roast or a seafood spread, only buy what you need and stick to one or two sides instead of trying to include all options. Same goes for desserts and only pop out nibbles as you need them during the day to avoid food spoiling and unnecessary waste.
Don’t leave it too late!
Despite the best of intentions, it’s easy to end up doing the last-minute Christmas dash. Get your food and gift lists in order early so you can grab things when you see them during your regular shopping trips.
Try going early in the morning or late at night to avoid big crowds during the weekends or peak times. Better yet, do your groceries online and have them delivered or organise a click and collect.
Avoid ‘Buy now, pay later’
The thought of buying now and paying at a later date can be alluring when you’re in the midst of Christmas shopping, but it’s something that is better avoided. Know what you need, how much you have to spend and stick to it. That way there won’t be any bill shock come January or February.
Most of all…..ENJOY!
The festive season really is a time to enjoy and by reducing the financial burden that can go with it, you can focus on precious time with your loved ones instead.
Merry Christmas, everyone!
This article is intended to provide general information of an educational nature only. Information in this article is current as at the date of publication.