As the festive season fast approaches, with its dazzling decorations, iconic tunes from Michael Bublé and Mariah Carey, and a flurry of social events, the spirit of Christmas is unmistakably in the air.
But while this time of year is supposed to be full of joy, it will be tough for many families in Australia as they face the increasing pressure to spend, even though their budgets are already stretched thin.
According to the latest research by Finder, it's estimated that Australians are set to spend $30 billion on Christmas this year, with the average person spending $1,361.
Remember, it's crucial not to spend more than you can afford. A financial hangover lasts a lot longer than a champagne one. So how can you enjoy a very merry Christmas on a budget? Here are our quick tips…
1. Set Your Christmas Budget – and Stick to it!
Enjoying Christmas on a budget begins with setting your budget. This is a spending plan based on your income and your festive outgoings.
Start by detailing your bills and upcoming financial commitments in a spreadsheet, or use our handy budgeting calculator to see what you have left to play with. Then realistically apportion this money for presents, food, drink and travel.
Next, make a list of all the people you have to buy for, write down gift ideas and figure out what you can afford.
If things are looking tight, try to identify areas where you can cut back, such as your daily coffee or Friday night takeaway.
Don’t be tempted to stretch the budget by using credit cards or buy now pay later services. More debt isn’t a good way to end the year.
2. Be Savvy in Your Gifting
We all want to be generous to our loved ones over Christmas. But if money is tight, it’s okay to make some cutbacks in the gift-giving department.
One way to stay within budget when buying for your kids and immediate family is to use the four-gift rule. This involves buying everyone four gifts only – something they want, something they need, something to wear and something to read. Alternatively, focusing on one meaningful gift that you know the recipient will cherish can be just as impactful and more budget-friendly.
When it comes to the wider family or close friends, suggest doing secret Santa, where everyone buys for one person only. This is easier and cheaper.
If you’re really struggling, just be honest and say you can’t afford gifts this year. Many people are in the same boat, so they will likely feel relieved.
3. Have a Pre-Xmas Clear Out
If you’re halfway through your Christmas shopping and the budget is already drained, look around the house to see what you can sell.
You probably have loads of items in the cupboards and garage that you no longer need. So instead of letting them sit there getting dusty, list them on Gumtree or Facebook Marketplace and make some quick cash.
Children’s toys and old bikes are great to sell as people are looking for bargains at this time of year. While you’re online, why not also look at what other people are selling that you could gift?
4. Cash in on Your Store Points
If you’ve accumulated store and reward card points, now’s the time to cash in. But make sure you’re smart in how you’re using them.
Rather than opting for free gifts, there are smarter ways to spend. For example, the best way to make savings with Flybuys is on travel. Use them to purchase flights to see family or book short breaks or holidays you could gift.
Woolworths Rewards card can be used to knock money off your grocery or gift shopping. You can also cash points in for fuel and flights.
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5. Streamline the Food and Drink Bill
Christmas hams, festive treats, beers, and champagne are a big part of holiday celebrations. However, they can also absorb your budget, so make sure you’re smart in how you shop, buy and host this year.
Meal planning is a great way not to go crazy and over-cater. Think about what you need and who’s coming over the festive period, decide what you’re going to cook or serve up, and only buy what you need.
In addition, use leftovers, buy supermarket-own brands and see what’s on sale. There are always ways to save. For example, alcohol is often better bought in bulk.
If you’re catering, ask guests to bring a plate instead of splashing out on the whole spread. Most people are happy to bring something along.
6. Shop Online for Great Savings
Rather than dragging yourself around any more crowded shopping centres, hop online, and you can find some fantastic savings.
In Australia, there are many online superstores that offer a massive range of products, discounts and coupons on everything from toys to clothes and homewares. Some of the ones to have a look at include:
7. Skip (or Change) Some Christmas Traditions
It may sound scrooge-like, but skipping a few Christmas traditions is a great way to save some bucks.
Instead of sending paper greeting cards, mail out e-cards. Rather than paying for an expensive Santa photoshoot, find a free one or take a selfie by your tree. And don’t try to outdo your neighbours with your Christmas lights. You’ll save a fortune on your electricity bill.
Do you really have to go to yet another festive meal out, or can you skip the crackers on the Christmas table this year? (You can just Google the Dad jokes!) There are plenty of ways to scrimp without causing too much disappointment.
Start Planning for Christmas 2024
The most effective way to do Christmas on a budget is to plan and save in advance. So, if it’s too late to use some of these tips this year, take them on board for 2024.
We also recommend you do the following:
Put aside money each month - That way, you have a pot to buy from when Christmas rolls around
Don’t leave shopping until the last minute - Look for deals, sales and discounts throughout the year and buy early
Buy after Xmas for next year - After Christmas is an ideal time to stock up on next year’s decorations, gift wrap and more, as it’s all on sale
Sticking to a Christmas budget doesn’t have to mean being a scrooge. Think of it as giving yourself the gift of better finances for the new year.
If you’re struggling with your finances this festive season and have more debt than you can manage, get in touch with our team of specialists today on 1800 534 534 for non-judgemental support and professional advice.
