Looking for budgeting tips these holidays so you don’t blow all of your savings?
Most of us have, at one time or another, spent too much money over the Christmas holidays and lived to regret it as the new year dawned.
The holiday season is a time of comfort, joy and togetherness, but with the lingering impacts of COVID and times of high inflationary pressures, it is prudential to approach this festive season with a budget to protect your personal financial bottom line.
Here are four hot tips to avoid blowing the budget these holidays.
1. Make a list - check it twice
This year isn’t the year to hit the department stores with a frivolous attitude and no real plan for who you need to buy gifts for and how much you want to spend.
Before you take to the shops, sit down and make a list of gifts you need to buy and apply a budget to each one.
After a certain age, your gift recipients can likely give you a solid idea of what it is they actually want – erasing the need to buy up on money-wasting items with the hope of making them happy.
Make a gift list and add up the total cost of the gifts you intend to buy before you hit the shops.
If the total value is not an amount you’re comfortable spending, consider another way to gift give this holiday season that might be more helpful to others feeling the financial pinch, such as paying a portion of fees for family members’ extracurricular activities or even striking a ‘no gift’ deal with other parties who may be keen to reduce their spending this time around.
2. Shop sales
Are there family members you won’t see until the new year?
Consider purchasing their gifts during the New Year sales.
You can find sales before Christmas too, especially on popular items stores may have over-ordered and need to clear out before the big day.
Look for bulk buying value when it comes to stocking up on decorations and snack foods for upcoming events and utilise any leftover gift cards or discount codes you can muster.
3. Leave the credit card at home
If you want to ensure you don’t go over budget this holiday season, leave the credit card at home.
When you’re caught up in the moment during Christmas shopping you could underestimate how stressful your credit card statement may be when it hits the letterbox in the near year.
Use cash or debit cards when shopping so that you can purchase with a realistic understanding of what you can afford.
4. Reuse and recycle
Do you really need new tree ornaments this year?
Will last year’s table theme suffice?
Consider areas where you can cut down, reuse and recycle to cut costs this Christmas season.
Many of us feel that the holiday season is already too consumerism-heavy, so don’t buy into trends you don’t feel align with your beliefs, despite the peer pressure to do so.
When all is said and done, you are the one responsible for paying your bills, so don’t feel inclined to buckle under the pressure of others’ expectations.
Talk about your finances
If you find it difficult to set budgets or determine what your discretionary spending capacity really is, contact a financial specialist to help you figure out how much wiggle room you have in your finances.
At First Financial, we are here to help when you feel that it’s time to take a look at your financial position in earnest – as we have been for so many others.
Don’t sit around wondering where you stand financially, contact our specialist team to talk through your financial position and your financial goals today.
