Rather than getting caught up in the commercial hype this Christmas, get wrapped in the spirit. This philosophy means giving gifts that are affordable and will not blow out your budget. It is also important to consider everyday expenses over the holiday period, as income may be less due to work closures. So, innovative forethought and careful planning can not only reduce, but also wipe out your financial headache this Christmas.
The media often suggest that Australian shoppers overspend with billions exchanging hands over the Christmas period. But, in 2015, the Australian Securities and Investments Commission (ASIC) found over 50 percent of Australians have a Christmas budget. Furthermore, four out of every five people stuck to this
ASICs also found that some 60 percent of Australians pay for Christmas presents out of their savings. Surprisingly, only 20 percent use their credit card. Of those who paid for gifts via credit, 80 percent paid their debt within 3-months, and 7 percent within 6-months.
If you are looking for was to save over Christmas, then consider these tips.
1.Look For Bargains
This is a basic rule. If you are looking to enjoy Christmas without the financial hangover then look for bargains, use discount offers or even credit card rewards. Think of innovative ways to save, so you spend less. Some excellent ideas for Christmas are making digital cards and gifts; chocolates and candles are perfect.
2. Plan Carefully
Christmas is an event, so you can plan for it, along with any holidays that you will have. Planning for Christmas means sitting down and writing out a budget. Such a plan needs to be realistic and affordable, and you need to stick to it to make it work.
3. Stick To Your Budget
Also, it is important to budget for gifts, food, and expenses over the festive season. While you would just like to enjoy the break, the bills do not stop rolling in. Hence, make sure you allocate extra funds to cover any bills or any other expenses.
Overspending is easy when you dont make yourself accountable. Consequently, if you are someone who finds it hard to stop buying, then do not take so much money when shopping. Alternatively, if you are prone to using your credit card to spend more than you can afford, then reduce its limit.
4. Share The Load
Another way to save, if you are hosting Christmas dinner, is to ask your guests to bring a dish. Similarly, suggest they also bring their drinks. Not having to buy these items will greatly reduce your costs.
Furthermore, if you are going on holidays, make sure you pre-book your accommodation and flights. Following this approach will save you a lot of money. Lastly, set aside some money for your travel and food, and leave yourself with spending money.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!