For Most Children, The Countdown To Christmas Can’t Come Soon Enough.
It’s typically an exciting and magical day filled with wonder and (gift-wrapped) surprises. For adults, however, the lead in to Christmas can be quite the opposite, particularly when it comes to managing the holiday finances.
With the holiday period, we usually see a significant jump in spending. The additional socialising, alcohol, gifts and all round merrymaking often add up to more than we realise.
Here are some tips for avoiding a financial hangover in the New Year.
- Set Your Christmas Budget
Writing up a budget is such a simple exercise, it can often be overlooked, but it’s one of the cornerstones of good financial management. Seeing all your anticipated expenses in plain site can really help you assess what you can really afford and where you may need to cut back. You may consider working in your Christmas budget into your regular household budget over the festive season, so your expenses are spread over several months. The best advice to follow is not to spend more than you can afford.
- Fund Your Spending Wisely
There are many ways you can pay for your holiday expenses, savings and credit cards being a common method. If you are going to dip into your savings, ensure you withdraw money from the account paying the least interest. If you use credit cards to purchase gifts and other items, give yourself a strict deadline reminder, to ensure the balance is paid off in full when the bill arrives in the New Year. Be wary of using store cards, which tend to have higher interest rates.
- Shop Smart
Make you money go further by shopping around looking for special deals and sales. Gift cards from retailers allow your recipients to not only choose their preferred gift, but enable them to purchase it after Christmas, during the Boxing Day sales that always follow. You can do some bargain shopping yourself during this time and prepare yourself for other gift giving occasions in the near future. Keep a running total of all your purchases somewhere handy (like your phone) so you keep track of your spending. Remember to hold onto receipts so presents are easily exchanged or refunded if need be.
To find out how TWD can help manage your family’s finances pre or post Christmas, send us an email at firstname.lastname@example.org or give us a call on 1300 893 000.