Your Financial Survival Guide for the Festive Season
It’s that time of year again, Christmas is approaching! While it’s an exciting time of year and can be full of joy and wonder, the Christmas period can also be a time of financial stress for many Australians. The kids are on school holidays, and the pressure to buy Christmas presents for every man and their dog has set in; you might have reduced hours at work due to the holiday shut down; and spending on holiday events or trips away is all putting pressure on the pockets.
So how can you take the pressure off this holiday season and enjoy what this time of year is truly about?
Set a Clear Budget for Gifting
Write a list of who you’ve absolutely got to give gifts to and set realistic limits for each gift that is within your means. It can be easy to give in to the pressure of buying for everyone, but we all have our limits! It’s common to feel worried that loved ones may feel a sense of disappointment if you give them a gift that is lower in value (or don’t give them a gift at all) this Christmas.
However, most reasonable people would hate the idea of their friend or family member experiencing financial hardship to give them a present. To avoid on-the-day dramas, communicate ahead of time who you’ll be giving to - “just the grandkids this year!” - and let people know if you are happy to not receive a gift in return.
Avoid paying for gifts with buy-now-pay-later services or paying on a credit card if you don’t already have the money set aside to pay off. While these services may temporarily increase your cashflow, they will put pressure on it later. Setting a budget that is within your means will give you the confidence to enjoy the holiday period without the financial stress looming above your head.
Simplify Holiday Meals
At a time of year when an obscene amount of food goes to waste, there are plenty of ways you can avoid over-purchasing and over-spending.
One great option is hosting a pot-luck-style Christmas lunch where each family, or family member, is responsible for bringing one or two items to share with everyone. This can be a great way to split the cost evenly as well as avoid double-ups or wastage.
Another great option is writing a grocery list and utilising price-matching policies or price comparison sites to find the best place to purchase each item. You could also utilise points you have built up throughout the year to purchase certain items at your local supermarket. While this method may take more time, it can help reduce the overall cost of your food spend significantly.
Reflect on What’s Really Important
While this is easier said than done, try to reflect on what is truly important to you as 2024 draws to a close. I doubt most people will say “getting a present from everyone I know” is top of their list. Maybe it’s time with loved ones, feeling financially free or just enjoying life to the fullest and making the most of each moment.
While Christmas is a time of gift-giving, it is also a time of reflection; a time to be thankful for what we have rather than focus on what we don’t (however big or small). Giving meaningful and thoughtful Christmas cards with a personalised message may be a cost-effective way to give your friends and family something they will receive with just as much gratitude as a present. This year, practice gratitude and tell your friends and family members what they mean to you with a heartfelt card.
To close…
While this list won’t solve all your financial woes this Christmas, I hope it gives you a small glimmer of hope that there are ways to manage your financial situation at this time of year if you have the courage to put them into practice. Remember, it’s okay to communicate your limits or disappoint people if it means you have financial well-being and peace of mind!
From everyone at Progressive Financial Planners, we wish you a happy Festive Season for 2024 and all the best as you prepare for 2025. We will be closed from 5pm on Friday the 20th of December until 8.30am on Monday 6th of January, returning ready for another year of helping people live their ideal life!
If one of your New Year resolutions is to get your finances in order, you can call the office on 02 4947 2233 or email admin@profp.com.au to book an obligation-free initial chat with one of our advisers – we’d love to help you make 2025 your best year yet.
