5 Steps to prepare your finances for Christmas
The holidays season is fast approaching (yay!). Christmas is a wonderful time to focus on family, friends and faith.
But with all the marketing noise in the lead up to the 25th, it can be easy to get caught in the spending spree.
Christmas gifting doesn't have to be a stress on your finances... The key is being prepared ahead of time.
Here are 5 simple steps to prepare your finances for the gift-giving season...
1. Create a plan, set a limit
Think about the people you’d wish to give a gift to this Christmas. Create a table in a notes app on your phone or on paper (whatever’s most easy to access). List out each person or couples’ names and write down some possible gift ideas.
Add a budget limit for each. Total up your list and discuss with your partner/family if this suits your situation.
Create a list on your phone where you can easily access it on-the-go.
2. Starting saving
Take the gifts list you’ve just created and set your savings goal to match the total limit. Set up automatic allocations each week so that you hit your target ahead of time.
Start the ‘savings stretch’ now, so that you can manage your cash flow and avoid having to rely on any forms of credit.
Set up automatic savings each cycle.
3. Clear the noise
Marketing will tell us that in order to have a great Christmas, we need to buy a lot of lavish gifts… But that’s not true. You can have a great time with family and friends without spending a great deal (eg. a BBQ and cricket at the park makes for a great day!).
Be aware of what marketing is influencing you. Companies have their own objectives for Christmas (to get your money!).
Pause and think about what a great Christmas really looks like, for you, your family and your friends.
Visiting Christmas light shows are endless family fun, and free!
4. Get in early
If you’ve got your Christmas savings ready early, you can take advantage of the Black Friday, Cyber Monday and early December sales. These are great opportunities to pick up the best and first items ahead of the rush.
When you get in early, you can do your research to find the best deals and not feel under pressure.
Avoid that dreaded last-minute Christmas Eve shopping rush — when most items are sold out you end up overpaying for something else!
Google Shopping is a great way to compare items even before you show up at the shops.
5. Stay on-track
It’s fun to be generous, but only when we can. The financial stress/anxiety that comes with overextending ourselves in spending can take the fun out of the holiday season, and put a dent in your finances through to the new year.
Put your money system to work to track your spending and stay within your limit. You’ll find creative ways to save money along the way.
Christmas baking is a great way to add something extra to your gifts.
Last Tip: Don’t say YES to everything. December is full of social engagements, and this can leave a serious dent in your time, energy and savings. Rather than accepting every invitation, pick a few important events to commit to.
What are your Christmas gifting tips? Share with us on Instagram
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