How to Avoid a Financial Hangover This Christmas

The festive season is one of joy and happiness – a time to get together with friends and family, to give gifts and create lasting memories. However, it is also a time of financial strain – especially if you decide to spoil the kids, your parents, your friends or even just yourself.

With Christmas only four weeks away it’s easy to get overwhelmed and lose track of your spending. It’s also easy to forget about the financial headache that sets in during the early months of the new year until it hits you like a hangover on Boxing Day.

If you’re usually left out of pocket with a financial hangover for the months following the big day, why not simplify things this year? Take the time to plan out your spending with these quick tips to save you a broken bank and a pounding migraine.

  • Pre-Christmas Clean Out

There is still time to collect some extra cash to boost your finances over the season. Spend a few hours going through stuff collecting dust, or anything that you don’t need – for example; clothes, books, jewellery, furniture, music, etc... there are plenty of places to sell your old things online, or you can take the old-fashioned route and hold a garage sale or find a local buy-swap-sell.

  • Check your list… twice.

Make a list of all the supplies you need over the holiday season. This includes everything from presents – who you are buying for, how much you are prepared to spend – to entertainment supplies – what food or drinks you need, how much you are going to spend on feeding your family or friends. Don’t forget to track your spending once hitting the shops.

  • Gift-hack

Master the art of Christmas gift hacking. Agree on a spending limit to keep under your budget. Talk to the other adults in your extended family and suggest buying for kids only. Make DIY vouchers consisting of redeemable thoughtful tasks like babysitting, free massages, picnics, homemade dinners or a weeks’ worth of housework. Raid second-hand book stores, op shops, and antique stores. You might be able to find treasures worth more than a shiny new price sticker.

  • Shop like Santa thinks

With millions of children to visit, Santa has a tight schedule to stick to. Set a limit on your shopping and keep it short and quick so you’re not tempted to spend money on unnecessary goods. Shop at odd hours to escape the crowds. Buy less expensive presents first.

  • Give the gift of giving

Instead of going for big gifts that might not necessarily be wanted or liked by the receiving party, spread the Christmas cheer by donating some money to a charity or by adopting an animal on another person’s behalf.

  • Share the load

If you’re hosting on Christmas day, share the catering. Ask your guests to bring round a plate of food or an eski of drinks to share with everyone. Buy what you need, and try not to go overboard on the Christmas crackers.

  • Plan for next Christmas!

Make the most of great sales throughout the next year so you can get your shopping done and out the way early, while also saving money.

At Select, we offer no-obligation, quality, and free home loan advice to help you reach your financial goals. Give us a call on (08) 9417 3399 to talk to us about home loan options that suit your circumstances.