It might seem too early to start thinking about this year’s Christmas budget, but if you’re looking for a stress-free holiday season (and leftover money in the wallet) now is the best time to start (We can help with a holiday loan).
Australians spend an average of $955 over the holiday season, leaving many people both financially and emotionally drained. However, it’s possible to celebrate the holiday season while still being sensible with your finances.
To avoid the Christmas spending splurge, here are some tips as well as last-minute Christmas gifts that won’t have you re-gifting socks and Lynx deodorant!
Tips to save money this Christmas
1. Make a zero-based budget
The concept of a zero-based budget is simple; income minus outgo equals zero. The goal of this type of budget is to know where every dollar is going. All expenses must be justified and approved each month in order to create a more transparent way of budgeting and keeping track of your spending.
Here are a few steps to help you set up your budget:
- Write down your monthly income and expenses: This list should include all paychecks, small-business income, cash in hand, residual income, and so on. Once you have this figure, proceed to write a list of your monthly expenses. Before the month begins, list down every expense you know is coming your way. This includes groceries, petrol, bills, and rent. Because this can vary month-to-month, you should make a new spending plan at the start of each month.
- Write down your extra expenses: Begin looking ahead to the Christmas season and start stashing away extra money bit by bit so that it doesn’t hit you all at once come holiday season time (we’re here to help with xmas cash loans to keep your season jolly). Take into account gifts, holiday food & drinks, decorations, gift wrap, Christmas cards, etc.
- Subtract your income from your expenses to equal zero: Ideally, at the end of the month your income and expenses should balance out and equal zero. If they don’t, try not to panic. It takes practice. But whatever you do, don’t spend anything that isn’t accounted for.
2. Track your spending
You may need the help of other resources to get you to stick to your budget and track your finances. Most banks now offer a goal-saving tool that automatically deducts a fixed amount from your spending account into your savings account. This is a great way of putting aside extra money for Christmas without even having to think twice about it.
Another way to track your spending is by using ASIC’s MoneySmart’s TrackMySPEND app. Using this app, you can nominate a spending limit for different types of Christmas expenses as well as track your spending.
3. Organise your schedule in advance
It’s easy to know how much you’ll be required to do at Christmas time if you know what the schedule is. Speak with all relevant family members and determine what is where, who is providing what, and confirming the other small details that could end up costing you a lot in the long run.
Now that you know what’s needed, you can make the appropriate purchases in advance as per the next tip.
4. Start stocking up now
If you know that you’ll be hosting this year’s Christmas dinner, begin putting aside supplies now. This includes decorations, paper cups, plates, as well as any food & drinks that can be stored until the day. Try scouring online or at a Christmas warehouse for cheap deals and prices. Buying all of your Christmas supplies now will save you time and money, as demand and prices increase closer to the holidays.
5. Get creative with gifts
Consider buying second-hand gifts. According to a Gumtree survey, 65% of Australians say they would be happy receiving a second-hand gift at Christmas.
You would be surprised at what you can find at op-shops and thrift stores. Other ideas for cheap Christmas gift ideas include going to your local market and picking up something handmade, as well as making your own Christmas gifts!
Here are some quick, easy, and affordable small gift ideas:
- This sweetly packaged, homemade hot chocolate mix – complete with mug, marshmallows and spoons.
- This extremely fancy, but cheap and easy Chocolate Lavender Biscotti – homemade and wrapped up in cellophane.
- This DIY kitchen chalkboard. Grab the smallest tin of blackboard paint you can find and make a few of them to give out as gifts.
- Pick out an interesting tea blend from T2 or your local specialty tea shop and fun infuser to go with it. Then invite yourself over for tea.
- Grab a few old teacups or interesting jars from the op shop and make some soy candles in them. Very trendy. Guaranteed street cred.
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