How to Avoid ‘Santa’s Debt’
As we begin to commence the steep descent into Christmas, I thought now would be as good a time as ever to give you a few tips to keep on top of your finances over the silly season and avoid you looking back on your Christmas spending like the picture above!
After all, it would be nice to not have to make a new year’s resolution about recovering from Christmas Spending, so here we go:
- Ditch the credit card – Don’t spend more than you can afford, after all, nothing says I love you like going into debt for a present, right? Wrong.
- Set spending limits for friends and family – This one seems obvious, but how often do you normally set a spending limit and go over it anyway? Set a limit and stick to it, this will help you budget through the silly season.
- Plan your presents – Start buying early so it isn’t a big rush the night before – if you shop on Christmas Eve you are prone to over spending, or not being able to get what you intended, and spending heaps more than you wanted to (refer point 2).
- Don’t get caught in the hype – It can be hard to act your wage when Christmas shopping – The stores know this and set you up to fail. Do you think all the Christmas decorations and Michael Bublé carols over the speakers are just the stores getting into the festive season? Nope – it’s to make you get hyped up about Christmas and overspend! Don’t fall for the traps!
For the philanthropists and thrill seekers among us? There are plenty of options available to purchase a meaningful gift for your loved ones that doesn’t just gather dust or clutter a bookshelf:
- Buy an experience, not a gift – if possible, buy your loved ones an experience – hot air balloon, holiday voucher, sky-diving etc. This is often appreciated as it provides a memory and experience – even better if it is a joint experience for you and the recipient.
- Make a donation on someone‘s behalf – there are plenty of different charities that will let you donate as someone’s present and give you a card to pass on to the recipient. You can do this through different cancer foundations, homeless charities or child sponsorship organizations (links below).
However, please don’t lose sight of the fact that it is Christmas – it’s still a great, fun time of the year – so don’t let my tips above turn you into the Grinch – just don’t go over the top! Your January account balance will thank you!
Finally, if you want to give yourself a present that future you will appreciate, book in with me to do a savings planning session to make the most out of your money in 2019!
Enjoy the Christmas Shopping!
Links for Charitable donations:
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