It’s officially 38 days until Christmas
Whether that’s a welcoming truth or not, to avoid any credit card post-holiday woes, we recommend that now’s the time to start thinking about budgeting for the festive season ahead.
It’s a pretty common trend for credit card debt to soar, when it gets to this time of year. It typically kicks off with Black Friday / Cyber Monday sales, which then leads right into Christmas shopping, followed by holiday spending! It doesn’t really seem to hit us properly until we’re back to work and reviewing our credit card bill!
We’ve put together a few tips to help you get through the holiday season without making too much of a dent in that credit card.
Budget for your gift giving and if you can – try nab some gifts in early Black Friday sales
Christmas shopping is one of the easiest activities to get a little carried away and overspend. We get served with non-stop gift giving marketing campaigns, which make spending very easy and tempting – nowadays with purchasing being as easy and quick as a click of a button.
Set up a budget that matches what you’re able to afford for all the gifts you plan to buy. By setting a budget, it gives you boundaries to keep within meaning you’re not left surprised when your credit card bill comes in at the end of the month.
If you have an idea early on what you’re hoping to buy, add items to wish lists and save them up for the Black Friday sales at the end of November. Look at this time as an opportunity to save money for Christmas spending… but be mindful to try to stick to Christmas shopping only – not going off on sprees for yourself!
Avoid using Buy Now Pay Later (e.g. Afterpay etc) schemes if you can or if you really need to resort to this, ensure you factor each payment into your spending budget.
Plan for the holiday break and set a budget aside
Setting a daily budget for a planned holiday break is our biggest recommendation. Have a look at what you can afford during this time, and budget accordingly. Try to include in your budget the activities you’re planning to book in as this will ensure there’s no hidden costs during your holiday. If you’re heading away, you may add some budget for accommodation, or petrol or perhaps a night out!
Whether you’re having a staycation or exploring somewhere new, setting a budget to suit your holiday will help avoid any overspending, whilst also ensuring you’re still getting to enjoy all the activities you hope to! By building a list or draft itinerary, you will get a fair idea of how much you may need to set aside. Try to think of some free activities you can throw in the mix too – if you’re staying in the country, New Zealand has many stunning walks, beaches and lakes to offer where you can simply enjoy the beauty of nature!
A tip… if you can – over budget with your spending vs under budget. You’ll always be thankful for this.
Get creative with the kids during the holiday period! This not only acts as a fun activity to keep them entertained but can double up as a gifting idea!
We have to remind ourselves that it’s the thought behind the gift for Christmas that counts more than the price tag! Think outside the box when it comes to gift giving – and try to include the kids where you can!
Whether it’s baking, arts and crafts or a little bit of DIY – creating a gift can always make for a fun activity with the family, as well as doubling up as a special gift idea.
Be mindful of credit card expenditure – and do your best to not miss any payments!
Being busy with the holidays, end of year work rush or school holidays buzz, it can be easy to miss credit card payments or to not stay on top of what you’re spending!
Try your hardest to set aside some time to keep an eye on finances – even if it’s just for a quick 30 minutes once a month. This means you’re aware of your holiday spending and if necessary, can adjust your budget where required.
Try to avoid missing any credit card payments. Late penalties can stack up and come as an unfriendly end of month surprise.
Start thinking about your saving plan for next Christmas
Yes, yes you did read those words right. It may seem extreme, but starting to think of a plan for next Christmas is an extremely wise idea.
By putting as little as $10 aside a week, you’ll be in a better position come 12 months from now – having already started some holiday savings.
While we’re home loan experts, our blog posts are for general information purposes only and are not intended as financial advice. If at any stage you need personalised advice, get in touch on 06 8788 4444 or Ben or Mark.
