The holidays are a wonderful time of the year, and with Santa just around the corner, there’s plenty to sort out before he heads down the chimney.
For many of us, the children are home from school, the office shuts down for a little while and we can let our hair down and enjoy the festive and New Year holidays.
Unfortunately, this period of the year can be a very stressful time as well. Finances can really bite at Christmas time with the expenses of gifts, travel, holidays and any other of life's little surprises that can pop up.
So, here are some tips from us to help you navigate the holiday period with a smile on your face – and without putting an undue burden on your finances.
You don't need to go into debt to impress your loved ones
Those marketing gurus are out in force at this time of year, ready to saddle you with the guilt of FOMO (Fear of Missing Out).
- Change your mindset: It can be easy to be trapped into thinking it is essential to lavish all of your friends and family with the latest trends and expensive gift ideas, even if your finances cannot handle it. Try to remove this thinking before your head into shopping for the season.
- Keep your regular budgets in mind. Most people would prefer money over a trinket (like scented candles, "pamper" kits or fragrances) and gift card sales go through the roof at this time of the year.
- Pay with cash as much as possible. This will help you to avoid overspending and going into future debt on your credit card.
- When in doubt, get creative. Loved ones adore home-made presents or perhaps a gift centered around your skills like photography, design or even your trade.
Avoid using credit for trips away
It can be easy to use credit cards or facilities like Afterpay to quickly account for flights and accommodation and worry about the consequences later. But going into debt for a holiday can impact your finances for years to come, which compounds if you make a habit of doing it every holiday season.
There are many fun and affordable ways to share moments with the family that doesn’t require you to swipe your credit card. Think road trips in your local area and booking affordable accommodation – or even camping (or glamping).
Plan ahead of time
If you are feeling the bite of the holiday period already, then start planning for next Christmas time NOW.
By allocating just a small amount of money each week, beginning in January, you can march into the 2020 holiday period with everything paid for. This will allow you to buy those bigger gifts, book that longer holiday and host those festive parties that you have always wanted to. By starting your savings early, you can earn hundreds of dollars in interest throughout the year for your diligence.centred around your skills like photography, design or even your trade.
Happy festive period to all our valued clients, customers and the wider community – from Dreamcatchers Lending!
Photo by Markus Spiske on Unsplash