Have you asked yourself – Can I have a great Christmas on a budget? Well, Christmas is notoriously a time when people spend tons of money and track up tons of debt buying Christmas gifts for their loved ones. Many times, without really having a plan to pay off debt.

However, once the holiday light dim, the new year rolls in, and those credit card bills arrive, and they have to open up those depleted bank account statements, it’s never fun. Ever.

Sometimes people think that if they are buying cheap Christmas gifts, they are spending less, but the truth is, it all adds up fast. As the saying goes, “small leak will sink a great ship” so does small expenses that can ruin your budget.

Holiday Finances – Did you know?

  • Borrowing on credit surges over the holidays?
  • Some people never get out of the cycle of credit card because they spend all year paying down debt only to get sucked back in due to holiday spending?
  • Visa cards are used 5-6 thousand times every minute during Christmas season.

Crazy huh? Well, that’s not going to be you this year!

Having a plan will help you with saving smaller amount every month instead of coming up with all of the money at once, and you can avoid getting into debt as a result. Even if you aren’t someone who spends an extravagant amount, creating a plan to save money for Christmas can definitely still help you.

Make a list and a budget

Rule of the thumb – always make a list. Channel your inner-Santa: keep a spreadsheet of all the people you intend to buy for next Christmas and allocate a budget to each person. As you make purchases for each person, update your spreadsheet to keep track of your spending. By the way, be strict with yourself, stick to your list and budget.

Save early

Open a savings account in January and contribute a small but regular amount to it every payday. Australians on average spend $1,325 at Christmas; therefore, putting aside $30 per week will add up to over $1,500 in a year’s time – meaning you should have adequate festive funds if you are the typical Aussie.

Squirrel away

As early as October, start purchasing non-perishable items for the holiday season. If you plan on hosting your own party or just bringing a plate to someone else’s gathering as a guest, creating your own stockpile over time can reduce the larger outlays you may expect at the grocery store in December and also enable you to purchase items as they come on sale.

Spend within your means

Christmas is a time to have fun and enjoy time with your friends and family, it’s not a competition to see who can spend the most money. Those that matter the most to you will always appreciate the thoughtfulness of your gift– not it’s price tag.

 

 

Take away:

Put a solid plan in place to avoid holiday debt and come out on the other side of the Christmas season with your financial goals intact. Stick to your plan, no matter what.

This holiday season, choose to focus on what you have, rather than on what’s missing, and let ‘blessed’ replace your ‘stressed’.

Here’s to a happy and financially sound holiday season!