Tis the season to spend smart!
Christmas can be daunting money-wise and often puts a lot of pressure on our finances. We have put together a list of ways to avoid Christmas money mistakes, to help you plan and avoid any financial headaches as we move into 2023.
1. Stick to a list
By having a list for Christmas purchases you can ensure your spending does not go out of control. Putting together a list of who you will buy for and for how much you will spend is an effective way of making sure you set spending limits and stay on course when completing your Christmas shopping. Better still, a spreadsheet with what you will buy and when will help you budget for those more expensive gifts, so you don’t leave yourself out of pocket during December.
2. Considering different gift options
If you are feeling the financial pressure this year – or just want to keep the Christmas gift giving budget a bit more manageable here are a few ideas you might like to try:
– Agree to a Kris Kringle approach with your extended family or friendship groups – so rather than buying for 20 people and spending $20 each – you agree to spend a bit more ($100 spend limit) but only on 1 person each. This means that the receiver gets a more substantial gift useful gift, and your overall spend is contained. An added benefit is that you only have to think about 1 gift rather than 20 (phew – what a relief).
– Give an ‘’experience’’ rather than a ‘’thing’’. Don’t discount the value of your time – perhaps a gift to loved ones of a picnic date or gifting mum a night off from cooking, or better still providing vouchers to call on you for outings (a drive to a beautiful spot to enjoy a coffee in a different environment). Quality time is the key and being a bit imaginative creates value for both the giver and the receiver.
3. Don’t overuse your credit card
The temptation of splurging on your credit card is more prevalent when it comes to Christmas. Try to avoid impulse purchases on your credit card over the festive period unless you absolutely must. Leave your credit card at home and focus on only using cash or a debit card – this will help you to spend more mindfully.
4. Beware of Boxing Day sales
Before Christmas is over, Boxing Day sales begin. These sales can be very attractive and often encourage impulse purchases to stash away for next Christmas, only to completely forget that you purchased them by the time the next festive season comes around. Be mindful of any post-Christmas bargains you are tempted to pick up.
5. Review your 2022 budget
Avoid bringing any outstanding bills from 2022 into the new year. Try to tie up any outstanding bills before January so you can start the new year with a clean slate and a clear mind. There is no better feeling than entering the new year with your bills paid and finances organised.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2022. Please do not reproduce without the expressed written consent of the author.