Christmas is a very exciting time! The new year is just around the corner and there are plenty of reasons to celebrate!
However, with Australians forecasted to spend over $64 billion on Christmas shopping this year alone, keeping an eye out will give you the confidence to make the most of the festive season and not regret it later.
At Rise High, we are committed to keeping your finances in shape this season and helping you start 2023 debt-free!
1. Make a plan before you get your Christmas shopping started
The best way to protect your finances this season is working out what your budget is before you start spending.
Whether you are planning to use your savings, or finance your Christmas shopping through Credit cards or buy-now-pay-later schemes (13% and 9% of Australians are planning to do so, respectively), it is important that you keep in mind how much you can realistically afford and manage to spend.
An important part of this budgeting exercise includes making a list of who you are planning to buy gifts for. Consider how much you’d ideally want to spend, and a couple of gift ideas to inform your budgeting.
This simple exercise can work wonders to avoid getting carried away and will help you stick to the plan! It will help you purchase what you really need, without giving in to temptation. When performing online research, it can also become handy to compare prices and find shops with the best alternatives.
Looking for a Bonus tip to level up your planning?
Keep track of the gifts you do buy! If you are a bit like us, you probably enjoy purchasing some gifts well in advance (Hello Black Friday sales!). Later on, you are probably guilty of hiding them and forgetting you had purchased them at all.
This tip will help you stay focused and organized, stopping you from overspending.
2. Give the gift of experiences and needs!
Are you planning to visit a concert or attend a special event next year? Purchase the tickets in advance and make them count towards your Christmas gifting!
Do you have kids who might be needing new shoes, socks or clothes throughout the year? This might be the perfect chance to find usable gifts you would have had to purchase anyways!
A hand-made or printed card with the tickets or image of an event you are planning to attend can make a wonderful gift and can save you money in the long term. If you are planning to take your loved ones to the cricket or footy next year anyways, making the announcement part of your celebrations this Christmas will add up to the joy of having something to open/unwrap on the day, whilst keeping you all looking forward to the event, even after Christmas day has passed.
If you happen to be a parent, you will most definitely have to purchase things like new shoes, socks, or even sports equipment for your kids as 2023 comes around. Thinking about making the most of those usable gifts now, can become a great strategy to invest now and save money next year.
3. Get creative: gift-wrapping, decorations and cooking
We love the internet! It provides the best access to ideas you can use for low-cost decorations or budget-friendly Christmas fun!
Low-cost Christmas cooking can be a great way to get into the Christmas spirit and have something to share with your loved ones. If cooking happens to be your strength, your very own recipes are likely far better than any other gift money can buy.
Are you also considering sending a Christmas card with that? Your own hand-made Christmas cards are invaluable and likely to cost a slice of the price of a standard Christmas card.
This Christmas, your time and unique touch can become better assets than money can ever be! Which inevitably brings us to…
4. Giving the gift of time
Let’s face it, as busy-working adults, there are not that many things we actually really need or really desperately want. Oftentimes, the thing we really wish we had more of, is time. So why not give the gift of time?
Baby-sitting vouchers, a free massage, or gifting your skills are some ideas that can save you money on Christmas Shopping. These often overlooked presents are far more valuable than many of our material possessions, and are readily available for you to offer!
Thinking about your skills and how they can be of value to your dear ones can help you plan around giving the best gifts of all time!
5. What if you didn’t manage to stick to your Christmas shopping budget?
If you have been naughty this Christmas, and just realised you have already over-spent your budget, don’t panic! Enjoy the festivities and once the Christmas period is fully over, commit to working out exactly what the damage is.
When working your way through your Christmas spending, look into your Bank statements and assess how much of your spending might have gone beyond your budget, or contributed to credit card debt and buy-now-pay-later schemes.
When working out an action plan to tackle your debt, you should really be looking into contributing more than the minimum towards credit card debt (since average interest rates on credit cards are sitting around the 16% mark), choosing to cover only the minimum might leave you covering significantly higher costs long-term for the Christmas cheer.
Working hard to pay it down upfront is definitely worth it!
At Rise High, we understand that knowing where to start and getting back on track financially can often feel daunting on your own. Luckily, our team is always here to support and guide you through this process, helping you put a budget plan that works for your specific financial situation.
If you are struggling to assess exactly what the damage is, our team can also provide you with access to great tools that can help. We are always happy to navigate through this with you.
Whether you are looking forward to paying down your debt or have grand plans like starting your property investment journey or buying your first home in 2023, we can’t wait to support and empower you!
