Heading into the busy Christmas / New Year period is often stressful but this year has been particularly tough for many people. Lockdowns, reduced or lost employment, home schooling and a whole new hygiene routine are just some of the challenges we’ve had to face this year. So how do we get through what is meant to be a festive period, financially unscathed?
With travel restrictions still in place in some states, the holiday season may look a little different this year. Some families will not be able to get together as usual, and that will be hard emotionally, but may be easier on the budget (silver linings). Putting together a plan can help you get organised. Here’s a few things to think about:
If you’re the type who gets to the end of the silly season with credit card debt and a sense of regret, now’s the time to do a budget and stick with it. Write out a plan and allocate an amount for gifts, food and drink, and entertainment over the holiday season, and make sure it’s affordable.
According to Finder, the average Aussie spends over $900 each year on Christmas. If that’s not in your budget this year, a well thought out plan may be your friend. If you have children, don’t feel pressured into buying everything they want, set their expectations early. We all have a limit, better a little guilt now than a lot of debt later. Christmas is about fun and family.
Be realistic about what you can afford. If you have a partner, consider setting spending limits for each other. A thoughtful inexpensive gift may be just as well received as an expensive generic one, so put some thought into who you are buying each gift for, and why. Consider doing a Secret Santa (i.e. one gift per person), gifting to children only, or having a “silly present” rule, that is, small novelty gifts with a price limit. When you have a reasonable idea of what you intend to spend over the coming holiday period, divide it by the number of pays left in the year, to work out how much you will need to set aside from each pay to cover your planned expenditure. If the amount seems too high, go back to your budget figures and think about where you can cut costs.
With your plan and budget in hand, you can start looking for bargains early. Here are some tips on how planning ahead can save money:
Planning ahead and sticking to a budget can take some of the stress out of the holiday season, after all this should be a time to relax and spend time with those you love. If you can’t be with loved ones this year plan video calls, Skype or Zoom catch-ups so that you have something to look forward to.
If you need help during this period, please call the Defence Family Helpline on 1800 624 608.
Find a financial adviser who will act in your best interests.