Did you know the average Aussie is expected to spend around $1,232 Christmas on presents, food, alcohol, eating out and travel (Source: Finder Consumer Sentiment Tracker)
Just thinking about what to buy your friends and family for Christmas is stressful enough. Lily want’s a new bike, but the specific one she’s had her heart set on is out of stock until next year, and your brother Brendan has literally everything he wants, so what could you possibly buy for him? We can feel the headache brewing already.
What’s most concerning about this whole scenario is, how are you going to afford it? Thankfully, there is a very simple way to navigate around this stress, and it’s called a Christmas budget.
Now, you’re probably thinking it’s a little early to start talking about Christmas, we’re only in October. However, making a budget and setting some boundaries early, can easily put a little control around your Christmas spending regardless of whether you start now or in January.
Get started by grouping together some of the costs that you’re going to come up against. Some of the main ‘groups’ of spending are; presents, catering and holidaying.
Catering
Christmas is a time we tend to go a little overboard with things, and food can be one of them. Have a good think about how many people will be attending and roughly how big each person’s appetite usually is. Also plan to make less of the foods that won’t last as long to avoid throwing out spoiled leftovers.
In Queensland we don’t have the luxury of food surviving hours on the table in 35+ degree heat on a Summers day, so having your economical hat on when planning out the menu can go a long way.
Consider involving your guests. Don’t be afraid to float the idea of each person bringing along their signature dish or favourite Christmas food.
Presents
Write a list of each person you’re buying for and set a price limit. The most important thing about this step is sticking to the price you’ve set. If you visualise what your overall present budget is, you’re more likely to stick to it.
If you happen to get what you were after for less than expected, then you can use this residual for paying off your priority expenses like debts or bills.
Another key to shopping for presents is to start looking now. Don’t wait until the last minute when you’re more likely to pay a premium for the item or buy more than you budgeted for in a panic.
Be mindful of postage as post-pandemic supply chain issues are still ongoing. It might also be a chance to support your community and shop locally!
Do your research. There is no doubt your inbox will be inundated with silly season sales, but don’t get caught up in the marketing blitz. Beware of traps like price deception where prices are marked up and then down to make you think you’ve scored yourself a good deal.
Download this nifty Christmas budget we put together to help you plan your gift limits.
Holidaying
Finding the best deal can take some time, so if you haven’t already, start researching and planning by monitoring travel sites or following social media accounts that may feature deals.
If you’re looking to get away on a shoestring budget, consider something different like camping. If you don’t have all the gear, speak to your friends or family first to see if they have any items you could borrow. Otherwise, second-hand options like cash converters or marketplace are other great places to look.
Christmas can easily turn into a stressful time of the year for a variety of reasons, so planning and budgeting for the season can help you in your journey to combat some of those anxieties and allow you to focus on what really matters – more time with your loved ones.
Download our Christmas budget to get started.
If you are looking for further guidance on budgeting, you can take advantage of our free Money Mentoring service. One of our qualified budgeting specialists can work with you to create an easy to follow plan that is individually tailored to you.