Ten rules for the holiday budget

Go on, spend a bit. But keep these rules in mind and get creative when you’re considering how to spread the Christmas cheer.

This festive season be sure to set limits so as to avoid post-Christmas regret.

The time of gift giving, end-of-year celebrations and family gatherings is among us, but while it can be tempting to get swept up in the magic of Christmas, being conscious of what’s coming out of the bank account can help prevent a surprise at the end of the month.

Australians are tipped to spend earlier and more this season and it can be helpful to enable money-conscious behaviour – from “staycations” to gift experiences without losing the Christmas spirit.

Here are 10 things to consider for the holiday season:

For the person who has everything – an experience

Helicopter flights, car racing and hot air ballooning are just some of the unique experiences to take a loved one by surprise. RedBalloon and Groupon are in the business of providing deals on experiences, whether it be a tranquil spa experience or a thrillseeking adventure.

Consider giving a hot-air balloon ride as a gift. Picture: AFP

Opt out of the expected materialistic gift and instead explore the idea of giving a memory. Both businesses often offer these experiences at slashed prices with these gifts not requiring hefty Christmas delivery fees as well.

The best payment method

From credit cards and cash to BNPL, there are a number of ways to pay for the cost of Christmas, but determining the best method for your financial situation and spending habits can make all the difference.

Afterpay and Zip have found their way into major retailers, offering consumers the option to take something home and pay the price in instalments with no interest. However, if payments are made late, that’s when the fees start to kick in – and add up. If overspending is an issue, then BNPL could spell trouble. Credit cards are a good option if rewards and miles are appealing but extra fees and a blow to your credit score could occur if you can’t make the payment. Taking cash out or using a debit card can keep you accountable for spending.

Take advantage of travel deals

It’s no secret that scoring a cheap airfare is difficult right now due to the hefty price tag attributed to jet fuel prices, paying the price of the pandemic and attracting staff. While there is no way around this, there are some tools available to keep you in the loop for the best deal. Skyscanner is a helpful source that can help you decide which airline is offering the best fare. Being flexible with airports is also helpful. For example, flying out or to airports like Avalon instead of Melbourne can bring the cost down.

Track spending with apps

Spending during Christmas is expected, but keeping tabs on how much money is going out can help keep you accountable to budgets. There are now many apps available for download on mobile devices that make budgeting easier. Apps like Frollo, Beem and Spriggy can synchronise bank accounts, split bills, set goals and even offer rewards. These apps can help give an accurate snapshot of the funds available and can easily be pulled out while out and about shopping for gifts and groceries.

Try the city instead of the coast

Get the holiday experience without taking a long-haul flight by booking a so-called “staycation”. As the weather heats up, coastal getaways in Queensland and NSW are expected to be a hit, but exploring the culture and bustle of the metros also offer a viable escape.

Consider booking a massage.

Whether it’s getting a much-needed sleep in, booking a massage or lounging by the pool after a day of shopping, a staycation can offer relaxation without leaving the state. Hotels are also embracing the trend, with many offering discounts or curating specific experiences, such as The Langham’s Celebrate Romance or Kids’ Glamping.

Host and enlist catering

Going out to the hottest new restaurant with friends can mean ordering that extra dessert or hitting the wine bar down the street afterwards, which makes for a financially ambiguous outing. Going out can be fun and spontaneous, but it’s easy to get ahead of yourself, especially among the company of friends. Instead, consider a more intimate gathering at home. Using a catering service can help you indulge having to do the work and lets you know exactly how much will be spent. Some catering services charge per head and can provide anything from three course meals to canapes which can help when making decisions according to budget.

Set firm spending limits

After enlisting the help of tip three, setting a realistic limit of how much you wish to spend per person can help manage funds and prevent unnecessary purchases. Assessing how much you wish to spend as a whole on gifts, then breaking down how you want to divide funds can help.

Remember to set a spending limit on each person you’re buying for.

Setting a spending limit can also mean prioritising on who you buy for. Family and close friends can get gifts, but skipping out on the neighbour down the street or a friendly workmate can make the difference in going over budget and even providing the ones you value most with better gifts.

An investment as a present

Feeling particularly nice this year? Give a gift that will continue to reap the benefits by putting in $500 to $1000 toward an EFT or blue-chip shares. Purchasing these shares are considered safe as these companies usually pay dividends and have less price volatility. This gift can also act as an entry point for people interested in investing. Investing with banks or supermarket giants like Wesfarmers ensures the money won’t go to waste as opposed to throwing money toward risky shares or things like NFTs and cryptocurrencies.

Get started

Shopping early is common advice and for good reason; the prices work against you and failing to prepare can mean spending a gift’s worth in express delivery costs. Avoid the late-night shopping most centres offer in the lead-up to Christmas and shop as early in the month as possible to avoid disappointment due to the lack of stock and deals.

For the cost conscious

Spending at places that offer free gift wrapping services can also shave costs associated with wrapping paper, fancy tapes and bows which will be thrown away almost immediately.